Wexford Plan

Adams, PA 16046

$368,990F

3 bd · 2.5 ba · 1,658 sqft · Built — · Townhouse · Active · 842 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,836/mo
• Mortgage (P&I): −$2,189
• Tax + insurance: −$696
• HOA: −$0
• Vac / Maint / Mgmt: −$595
• Net cashflow: $-645/mo
• Annual: $-7,737/yr
• Cap rate: 4.44%
• Cash-on-cash: -6.62%
• DSCR: 0.71
• 1% rule: 0.68%
• Cash to close: $116,888

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $369k.
• At list price, monthly cash flow is $-645 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $324k (12.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $284k (23.2% below list).
• It's been on market 842 days — a 12% lower offer ($325k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $284k (23.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Mars Area SD (rural): math 58% / reading 78% proficiency, ranked #24 of 539 in PA (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Market conditions: 109 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 987 units permitted in Butler County in 2024 (0 in 5+ unit buildings).
• Butler County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

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 842 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• 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.
• 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.