15-Unit Income
For Sale
$1,999,999
306 Merwinsburg Road, Effort, PA 18330
Fifteen units with a former motel layout, including remodeled apartments and ample parking on General Commercial zoning.
Property Size10,546 SF
Days on Market192
Property Features for 306 Merwinsburg Road
General Information
Standard status
Active
Size
10,546 SF
Property subtype
Agriculture
Taxes and HOA fees
Annual Taxes
$19,486
Building Details
Building Size
10,546 SF
Year Built
1902
Listing Agency:
Keller Williams Real Estate - Stroudsburg 637 Main
(570) 213-4884
Listed By:
Bob Kelly
(570) 213-4884
Source:
Dpcomgroup
Added: Jan 31
Changed: Aug 8
Last Checked: Aug 11 at 4:40AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Keller Williams Real Estate - Stroudsburg 637 Main
Investment Insights
Based on property information with market context.
This 15-unit income property was originally built and operated as a motel and is currently configured to support long-term rentals. The site includes multiple unit types, with representative layouts shown as cabin, traditional apartment, studio, and a vacant unit ready for conversion. Approximately 75% of the units have been recently remodeled, while the largest building remains ready for renovation, offering an opportunity to refresh additional inventory. The property is set among landscaped grounds surrounding a pond, creating a tranquil setting. Plenty of parking is available for all units.
Located in the Poconos, the property offers convenient access to popular regional destinations, including Lake Harmony, Big Boulder, Jack Frost, Camelback, Kalahari, Great Wolf Lodge, Aquatopia, Pocono Raceway, Pocono Premium Outlets, Mount Airy Casino, and Beltzville Lake. The property is zoned General Commercial (GC), and the permitted use table is available through the documents or the listing agent, including full details on approved uses subject to zoning and approvals.
For investors, developers, or hospitality operators, the motel-style configuration supports multiple operating paths, including continuing long-term rentals or converting portions to short-term rentals, subject to zoning and approvals. With long-term tenants currently in place, the property provides immediate income while additional renovations and unit conversions can be evaluated over time. Showings are by appointment only, and proof of funds or a mortgage pre-approval is required prior to scheduling.
Located in the Poconos, the property offers convenient access to popular regional destinations, including Lake Harmony, Big Boulder, Jack Frost, Camelback, Kalahari, Great Wolf Lodge, Aquatopia, Pocono Raceway, Pocono Premium Outlets, Mount Airy Casino, and Beltzville Lake. The property is zoned General Commercial (GC), and the permitted use table is available through the documents or the listing agent, including full details on approved uses subject to zoning and approvals.
For investors, developers, or hospitality operators, the motel-style configuration supports multiple operating paths, including continuing long-term rentals or converting portions to short-term rentals, subject to zoning and approvals. With long-term tenants currently in place, the property provides immediate income while additional renovations and unit conversions can be evaluated over time. Showings are by appointment only, and proof of funds or a mortgage pre-approval is required prior to scheduling.
Key Highlights
- 15‑unit income property in the Poconos; originally built and operated as a motel with a former motel layout
- Long‑term tenants in place for current rental income, with flexible options for continued long‑term rentals or short‑term rental conversion (subject to zoning/approvals)
- About 75% of units have been recently remodeled; largest building remains ready for renovation
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
$94,510
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
4.73%
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%
$1,890,200
$1.9M
Cap Rate 7%
$1,350,143
$1.4M
Cap Rate 9%
$1,050,111
$1.1M
Market Conditions
NOI Build-Up for 10,546 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
$178.4K $16.92/SF
− Vacancy
−$6.6K −$0.63/SF
EGI
$171.8K $16.29/SF
− OpEx
−$77.3K −$7.33/SF
NOI
$94.5K $8.96/SF
Area
Monroe County, PA
Vacancy
3.70%
Lease Rate
$16.92 /SF/Yr
Expense Ratio
45.00%
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%
$1,890,200
Cap Rate 7%
$1,350,143
Cap Rate 9%
$1,050,111
Alternative Uses
Best Use
Apartment 5plus
$1.35M
$1.18M – $1.58M
NOI $94,510 @ 7.0% cap · market cap 4.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.16M
$2.76M – $3.68M
NOI $220,960 @ 7.0% cap · market cap 11.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
55
Businesses Nearby
Explore this area
Business Placement
Demographics for 18330, PA
8,351
Population
3,196
Households
2.6
Avg Household Size
42
Median Age
23%
College-Educated
94%
High-School Grad
14.5 sq mi
ZIP Area
576
Density / Sq Mi
$92,907
Median Household Income
$41,313
Median Earnings
$1,809
Median Rent
$251,300
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Fifteen units with a former motel layout, including remodeled apartments and ample parking on General Commercial zoning.
Where is this apartment building located?
The property is located at 306 Merwinsburg Road Effort, PA.
What is the asking price?
The asking price for this property is $1,999,999.
What are key features of this property?
This property features: 15‑unit income property in the Poconos; originally built and operated as a motel with a former motel layout; Long‑term tenants in place for current rental income, with flexible options for continued long‑term rentals or short‑term rental conversion (subject to zoning/approvals); About 75% of units have been recently remodeled; largest building remains ready for renovation
