315 N Front St

Harrisburg, PA 17101

$995,000C+

96 bd · None ba · 8,560 sqft · Built 1850 · MultiFamily · Active · 272 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,147/mo
• Mortgage (P&I): −$5,218
• Tax + insurance: −$1,658
• HOA: −$0
• Vac / Maint / Mgmt: −$2,341
• Net cashflow: $1,930/mo
• Annual: $23,159/yr
• Cap rate: 8.62%
• Cash-on-cash: 8.31%
• DSCR: 1.37
• 1% rule: 1.12%
• Cash to close: $278,600

Investor read

• This is a 1×3bd/1ba + 2×2bd/1ba + 5×1bd/1ba units multifamily listed at $995k. Condition is rated fair.
• At list price, monthly cash flow is $2k ($23k/yr) — positive. Per door: $241/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $995k).
• It's been on market 272 days — a 12% lower offer ($876k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $876k (12.0% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($7k loan paydown + $-1k appreciation (-0.1% local appreciation)).
• Location reads 84/100 on livability (#107 in PA, #826 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: schools C-, employment D, crime F.
• Harrisburg City SD (urban): math 6% / reading 13% proficiency, ranked #535 of 539 in PA (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 82% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1850 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 7 active listings in the ZIP; 540 units permitted in Dauphin County in 2024 (194 in 5+ unit buildings).
• 4 sale attempts since 3y ago; this cycle's ask has dropped $416k (29%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $633k; list at $995k implies a 57% gain — meaningful room to come down on a strong offer.
• At projected returns (-0.1% appreciation + 1.0% rent growth), your $279k cash investment doubles in ~9 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$64k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 8.6% vs local median 6.6% in Harrisburg — 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.
• At $11,147/mo this rent would consume 263% of the median local household income ($51k/yr) (locally 441% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 272 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1850 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?

Repairs flagged (vision-AI assessment)

• Major: Kitchen cabinets — The cabinets are outdated and in poor condition.
• Major: Kitchen countertops — The countertops are outdated and in poor condition.
• Major: Bathroom fixtures — The fixtures are outdated and in poor condition.
• Major: Flooring — The flooring is in poor condition and needs replacement.