412 N 8th St

Stroudsburg, PA 18360

$595,000C

None bd · None ba · 4,068 sqft · Built 1920 · MultiFamily · Pending · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,244/mo
• Mortgage (P&I): −$3,120
• Tax + insurance: −$992
• HOA: −$0
• Vac / Maint / Mgmt: −$1,521
• Net cashflow: $1,611/mo
• Annual: $19,330/yr
• Cap rate: 9.54%
• Cash-on-cash: 11.60%
• DSCR: 1.52
• 1% rule: 1.22%
• Cash to close: $166,600

Investor read

• This is a 3×2bd/1ba + 1×1bd/1ba units multifamily listed at $595k. Condition is rated good.
• At list price, monthly cash flow is $2k ($19k/yr) — positive. Per door: $403/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $595k).
• It's been on market 24 days — a 2% lower offer ($586k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $586k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#196 in PA, #1,702 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, health & safety A+; Watch: employment D+.
• Stroudsburg Area SD (suburban): math 33% / reading 49% proficiency, ranked #315 of 539 in PA (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 189 active listings in the ZIP; 278 units permitted in Monroe County in 2024 (52 in 5+ unit buildings).
• Monroe County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 7 sale attempts 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $167k cash investment doubles in ~10 years — after that, you're playing with house money.
• At $7,244/mo this rent would consume 122% of the median local household income ($71k/yr) (locally 1020% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.