437 E Melrose St

Marion Heights, PA 17832

$60,320A-

3 bd · 1.0 ba · 1,344 sqft · Built 1900 · Other · Pending · 55 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,182/mo
• Mortgage (P&I): −$316
• Tax + insurance: −$75
• HOA: −$0
• Vac / Maint / Mgmt: −$248
• Net cashflow: $543/mo
• Annual: $6,516/yr
• Cap rate: 17.10%
• Cash-on-cash: 38.58%
• DSCR: 2.72
• 1% rule: 1.96%
• Cash to close: $16,890

Investor read

• This is a 3-bed/1.0-bath other listed at $60k.
• At list price, monthly cash flow is $543 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $60k).
• It's been on market 55 days — a 3% lower offer ($59k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $59k (3.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($417 loan paydown + $4k appreciation (5.9% local appreciation)).
• Location reads 64/100 on livability (#1,221 in PA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: crime D+, schools F, amenities F.
• Mount Carmel Area SD (town): math 20% / reading 37% proficiency, ranked #455 of 539 in PA (top 84%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 81 units permitted in Northumberland County in 2024 (0 in 5+ unit buildings).
• Northumberland County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (5.9% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 55 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.