7974-7976 Main St

Conyngham, PA 18655

$350,000D+

6 bd · 3.0 ba · 3,732 sqft · Built — · MultiFamily · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,818/mo
• Mortgage (P&I): −$1,835
• Tax + insurance: −$650
• HOA: −$0
• Vac / Maint / Mgmt: −$592
• Net cashflow: $-259/mo
• Annual: $-3,108/yr
• Cap rate: 5.63%
• Cash-on-cash: -2.36%
• DSCR: 0.90
• 1% rule: 0.81%
• Cash to close: $98,000

Investor read

• This is a 3 × 2-bed/1.0-bath units multifamily listed at $350k. Condition is rated good.
• At list price, monthly cash flow is $-259 ($-3k/yr) — negative. Per door: $-86/mo.
• To cash-flow at today's rent, offer at most $313k (10.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $282k (19.5% below list).
• It's been on market 26 days — a 2% lower offer ($345k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $282k (19.5% below list) — sets the bar for 1% rule.
• In year one you build about $37k of equity ($2k loan paydown + $35k appreciation (10.0% local appreciation)).
• Location reads 77/100 on livability (#331 in PA, #2,897 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Greater Nanticoke Area SD (suburban): math 14% / reading 34% proficiency, ranked #479 of 539 in PA (top 89%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Gna El Ctr (math 15% / reading 36%, grade F, #1,172 of 1,518 statewide, top 77%, 505 students, 100% FRL); Greater Nanticoke Area Ed Ctr (math 4% / reading 32%, grade F, #453 of 512 statewide, top 89%, 539 students, 100% FRL); Greater Nanticoke Area Shs (math 52%, 714 students, 89% FRL) — zoned schools average 96% FRL vs 52% district-wide (44 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 36 active listings in the ZIP; 349 units permitted in Luzerne County in 2024 (16 in 5+ unit buildings).
• Luzerne County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 2, paydown + projected appreciation supports a ~$60k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.6% vs local median 2.5% in Conyngham — 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 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?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.