124 Teal Ter

East Hempfield, PA 17601

$289,000C

3 bd · 1.5 ba · 2,340 sqft · Built 1997 · Townhouse · Coming Soon · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,090/mo
• Mortgage (P&I): −$1,516
• Tax + insurance: −$426
• HOA: −$294
• Vac / Maint / Mgmt: −$649
• Net cashflow: $206/mo
• Annual: $2,470/yr
• Cap rate: 7.15%
• Cash-on-cash: 3.05%
• DSCR: 1.14
• 1% rule: 1.07%
• Cash to close: $80,920

Investor read

• This is a 3-bed/1.5-bath townhouse listed at $289k.
• At list price, monthly cash flow is $206 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $289k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Hempfield SD (suburban): math 50% / reading 65% proficiency, ranked #81 of 539 in PA (top 15%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Landisville Pri Ctr (math 57% / reading 72%, grade B, #249 of 1,518 statewide, top 19%, 591 students, 28% FRL); Landisville Ms (math 38% / reading 64%, grade C, #116 of 512 statewide, top 24%, 511 students, 35% FRL); Hempfield Shs (math 77% / reading 24%, grade D+, #125 of 437 statewide, top 30%, 2,268 students, 33% FRL).
• Market conditions: Rents rising (+4.0%/yr); 321 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,093 units permitted in Lancaster County in 2024 (201 in 5+ unit buildings).
• Lancaster County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 16y ago; this cycle's ask is 70% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $170k; list at $289k implies a 70% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 6→13/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 36% of the median local income ($102k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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.
• 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.