135 Sandpiper Ct

Gilbertsville, PA 19525

$340,000D+

3 bd · 2.0 ba · 1,814 sqft · Built 2011 · Townhouse · Pending · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,335/mo
• Mortgage (P&I): −$1,783
• Tax + insurance: −$511
• HOA: −$125
• Vac / Maint / Mgmt: −$700
• Net cashflow: $215/mo
• Annual: $2,585/yr
• Cap rate: 7.05%
• Cash-on-cash: 2.72%
• DSCR: 1.12
• 1% rule: 0.98%
• Cash to close: $95,200

Investor read

• This is a 3-bed/2.0-bath townhouse listed at $340k.
• At list price, monthly cash flow is $215 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $333k (1.9% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $333k (1.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#129 in PA, #1,013 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: amenities C-, commute F.
• Boyertown Area SD (suburban): math 44% / reading 53% proficiency, ranked #167 of 539 in PA (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Boyertown Area Shs (math 73% / reading 50%, grade B-, #74 of 437 statewide, top 17%, 2,158 students, 25% FRL).
• Zoned-school proficiency averages 61% at this address vs 48% district-wide (+13 pts) — the actual schools serving this property are materially stronger than the Boyertown Area SD average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 78 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,936 units permitted in Montgomery County in 2024 (530 in 5+ unit buildings).
• Montgomery County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 5y ago 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.
• Current owner paid $280k; 21% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: moderate wind risk, 23% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.1% vs local median 3.1% in Gilbertsville — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.