446 Main St

Hallstead, PA 18822

$60,000B+

3 bd · 1.0 ba · 1,465 sqft · Built 1950 · Other · Pending · 121 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,100/mo
• Mortgage (P&I): −$315
• Tax + insurance: −$614
• HOA: −$0
• Vac / Maint / Mgmt: −$231
• Net cashflow: $-59/mo
• Annual: $-714/yr
• Cap rate: 14.31%
• Cash-on-cash: 28.64%
• DSCR: 2.27
• 1% rule: 1.83%
• Cash to close: $16,800

Investor read

• This is a 3-bed/1.0-bath other listed at $60k.
• At list price, monthly cash flow is $-59 ($-714/yr) — negative.
• To cash-flow at today's rent, offer at most $49k (17.5% below list).
• Meets the 1% rule at list price ($1k rent vs $60k).
• It's been on market 121 days — a 12% lower offer ($53k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $49k (17.5% below list) — sets the bar for cash-flow.
• In year one you build about $2k of equity ($415 loan paydown + $2k appreciation (2.8% local appreciation)).
• Location reads 63/100 on livability (#1,256 in PA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A; Watch: schools F, amenities F, commute F.
• Blue Ridge SD (rural): math 29% / reading 56% proficiency, ranked #319 of 539 in PA (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: property tax is 2.6% of price; flood insurance adds $460/mo; built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 16 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 80 units permitted in Susquehanna County in 2024 (5 in 5+ unit buildings).
• Susquehanna County population projected at -30% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 4y ago; this cycle's ask has dropped $10k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (2.8% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~8 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 121 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?