Listing Agency: RPA Real Estate

Listed By: Robert Merante Show Phone

Source: Nepahousehunt

Added: Oct 18, 2025 Changed: Sep 9 Last Checked: Sep 11 at 10:43AM

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Investment Insights

Based on property information with market context.

This established bed and breakfast offers an income-generating room rental setup with multiple rooms available for guest stays. Current room-rental income is reported at $2,500 per month, and two rooms are presently vacant and available.

The property is described as being in a serene setting with close access to trout-stocked streams and campgrounds, as well as nearby Glen Rickets water falls and wildlife preserves. The surrounding area reportedly draws significant traffic during the fishing and hunting season.

While the reported $2,500 monthly figure reflects room rentals only, the remarks note additional revenue potential from the on-site restaurant is not included in that amount.

Key Highlights

• Established bed and breakfast with room rental income
• 2 vacant rooms currently available for continued room rental revenue
• Room rentals generate $2,500/month, not including restaurant revenue

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$25,866

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

7.63%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$517,320 $517.3K

Cap Rate 7%

$369,514 $369.5K

Cap Rate 9%

$287,400 $287.4K

Market Conditions

NOI Build-Up for 6,150 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$61.3K $9.96/SF

− Vacancy

−$6.8K −$1.11/SF

EGI

$54.5K $8.85/SF

− OpEx

−$28.6K −$4.65/SF

NOI

$25.9K $4.21/SF

Area

Columbia County, PA

Vacancy

11.10%

Lease Rate

$9.96 /SF/Yr

Expense Ratio

52.50%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$517,320

Cap Rate 7%

$369,514

Cap Rate 9%

$287,400

Alternative Uses

Best Use

Hotel Hospitality

$369.5K

$323.3K – $431.1K (±1% cap)

NOI $25,866 @ 7.0% cap · market cap 7.63%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$2.06M

$1.80M – $2.41M (±1% cap)

NOI $144,338 @ 7.0% cap · market cap 42.58%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Bed & breakfasts

Suggested Use

Top Pick Restaurant

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

5

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 17814, PA

4,673

Population

2,615

Households

1.8

Avg Household Size

47

Median Age

17%

College-Educated

92%

High-School Grad

127.9 sq mi

ZIP Area

37

Density / Sq Mi

$62,679

Median Household Income

$38,594

Median Earnings

$919

Median Rent

$217,000

Median Home Value

Questions? Ask Rey

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What type of property is this? Where is this bed & breakfasts located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Bed & breakfast - Established bed and breakfast with room rental income and two currently vacant rooms available, with restaurant revenue not included.

Where is this bed & breakfast located?

The property is located at 1324 Elk Grove Rd Benton, PA.

What is the asking price?

The asking price for this property is $339,000.

What are key features of this property?

This property features: Established bed and breakfast with room rental income; 2 vacant rooms currently available for continued room rental revenue; Room rentals generate $2,500/month, not including restaurant revenue