How to Analyze a Lancaster Flip or BRRRR Deal (2025): Numbers, Common Mistakes, and Why Mid-Term Rentals Near the Hospital Work

Thinking about a flip or BRRRR in Lancaster, PA? This guide walks you through the math, the Lancaster-specific pitfalls to avoid, and how to underwrite a mid-term rental (MTR) strategy serving travel nurses and medical pros near Penn Medicine Lancaster General Health—including tips for using Furnished Finder.

Quick Lancaster market snapshot (so your math is grounded)

• Lancaster City median sale price: ~$280,000 (July 2025), up ~8.7% YoY.

• Lancaster County median sale price: ~$358,000 (July 2025), up ~4.8% YoY.

• Typical asking rents: Citywide averages cluster around $1,500–$1,700 depending on size and source (e.g., Zillow reports ~$1,585 all-bed average; Apartments.com shows ~$1,730 for 2BR). Use your own comps, but this is a solid starting range.

• Hospital anchor: Lancaster General is a large, Magnet-designated facility in the city (500+ beds), with the county’s only Level I Trauma Center—a steady driver of temporary medical staffing.

• MTR demand indicators: Furnished Finder shows dozens of monthly listings in and around Lancaster, with example prices for 1–2BR units commonly in the $1,700–$2,500+ range depending on location and finish. (A snapshot shows listings like a studio at ~$1,995 and a 2BR around $2,500 near downtown.)

Step-by-step: analyze a Lancaster flip

1) Nail your ARV (after-repair value).
Pull block-level comps within ~0.25–0.5 miles, same bed/bath/style, closed in last 90–180 days. City streets vary fast; don’t average across neighborhoods.

2) Set your MAO (maximum allowable offer).
Classic rule of thumb:
MAO = (ARV × 70%) − Repairs
Adjust the “70%” depending on risk, holding time, and resale tier in your micro-market.

3) Budget all costs (not just rehab).
Include: purchase closing costs, utilities + interest + taxes (holding), insurance, staging, lawn/snow, and selling costs (agent/transfer tax/title—8–10% of resale is a common pencil for Lancaster flips).

4) Speed matters.
Lancaster County homes are liquid in many zips (low days on market), but crews and permits can bottleneck—build slack into your hold time. Redfin

Mini flip example (illustrative math)

• ARV: $320,000

• Repairs: $55,000

• MAO: $320,000 × 0.70 − $55,000 = $169,000

• If you pay $210,000, your profit after all costs might shrink to the teens ($15–20k) once you add 8–10% selling fees and 3–4 months of carrying costs—too thin for the risk.

• Buy closer to $169,000, and that same deal can swing to a $50–60k spread before taxes and surprises.

Investor tip: Because transfer taxes and selling costs in PA add up, your “70%” might be closer to 65–68% on tighter, cosmetic flips in the city to protect margin.

Step-by-step: analyze a BRRRR in Lancaster (long-term OR mid-term exit)

BRRRR steps: Buy → Rehab → Rent → Refi → Repeat. The underwriting hinges on leaving little to no cash in the deal after refi and hitting stable cash flow.

1) Buy & Rehab
Target properties with clear value-add (mechanicals, kitchens, baths, layout fixes, basement waterproofing). Plan a code-compliant scope that will easily pass the city’s rental licensing inspections.

2) Appraisal & Refi math
If your post-rehab appraisal is $260,000, a 75% LTV refi yields $195,000. If your all-in basis (purchase + rehab + closing + furnishings if doing MTR) is $226,750, you’ve left ~$31,750 in the deal—ok if cash flow makes sense and the area is A- for appreciation.

3) Long-term rent comps
Use current local comps (Zillow/Apartments.com) plus property-level variables (parking, laundry, AC). Two-bedroom asking rents around $1,700–$1,800 are common; 3BRs trend higher.

4) Mid-term rent comps (30–180 days)
Near LGH, Furnished Finder and travel-nurse portals show strong availability with many private units in the $1,700–$2,500+ bracket. The higher end correlates with walkability to the hospital, new/updated finishes, and parking.

5) Expenses (don’t forget these)

• MTR utilities: add ~$200–$300/mo for electric, gas, water/sewer/trash, internet.

• Turnovers & cleaning: budget ~$100–$200/mo averaged.

• Furnishings: $6,000–$10,000 to set up a 1–2BR nicely; keep a small replacement reserve.

• Platform costs: Furnished Finder doesn’t charge nightly booking fees; you communicate and contract directly. (You may still pay for screening services.)

6) Cash-flow check (illustrative)

• Refi loan $195,000 at a market 30-yr investor rate (plug in your lender’s actual rate). P&I roughly ~$1,300–$1,350/mo at mid-7s.

• Add taxes/insurance (e.g., $350 + $100) → PITI ≈ $1,750–$1,850.

• Long-term rent $1,800 minus vacancy/mgmt/repairs often lands near break-even or slightly negative unless taxes are lower or the buy is deeper.

• Mid-term rent $2,100–$2,400 minus vacancy (5–10%), mgmt/coord (0–12% depending on DIY), utilities ($250), and cleaning reserves can net $200–$400/mo positive—if you bought right and keep occupancy high. Your outcome hinges on purchase price, taxes, and MTR rate.

Underwriting tip: Model 3 scenarios—Base, Bear (−10% rent & +1 month vacancy), and Bull (+10% rent). Choose deals that survive your Bear case.

Why Lancaster is attractive for BRRRR & MTRs

1. Consistent buyer pool & quick sells for renovated properties (helpful flip exit): Countywide medians are healthy, and many zips still move quickly.

2. Medical anchor: Lancaster General (Magnet-recognized; Level I Trauma Center) plus Women & Babies and Rehab hospitals keep travel nurse & clinician rotations flowing.

3. Walkable urban core: Downtown’s restaurants, Fulton Theatre, Central Market, and hospital district make small, renovated 1–2BRs with parking and laundry ideal for mid-term guests.

4. Abundant MTR channels: Furnished Finder and travel-nurse platforms list many local options—evidence of both demand and comps you can benchmark.

Lancaster-specific mistakes investors make (and how to avoid them)

1) Ignoring licensing & inspections.
Lancaster City requires a Rental Occupancy License and inspections—don’t close your BRRRR budget without permitting/inspection time and any remedial fixes.

2) Over-averaging comps across neighborhoods.
Values change block-to-block. Stay hyper-local (same style, similar condition), and watch school district lines and traffic patterns.

3) Underestimating taxes.
City taxes can be notably higher than some surrounding townships; underwrite post-rehab assessed value risk.

4) Over-improving for the comp set.
That $30k chef’s kitchen won’t return dollar-for-dollar in a block of $260k ARVs. Match finishes to the top third of your micro-market—not beyond.

5) MTR math without true costs.
MTRs include furnishings, utilities, cleaning, and sometimes higher vacancy between contracts. Budget realistically and track occupancy.

6) Parking and laundry blind spots.
Travel nurses prize off-street parking and in-unit laundry. Lack of either can ding your MTR rate more than you expect.

7) Weak photos & listing copy.
Even for 30+ day stays, professional photos, floor plans, blackout curtains, and a desk setup raise both rate and occupancy.

Checklist: underwriting a Lancaster mid-term rental near LGH

• Location: ≤10–12 minutes to 555 N Duke St (LGH) or Women & Babies; safe block; good night lighting.

• Unit basics: 1–2BR sweet spot; off-street parking; in-unit laundry; reliable HVAC; blackout curtains; desk + fast Wi-Fi.

• Furnishings budget: $6k–$10k for quality, durable basics; queen bed in each BR; spare linens x2; fully stocked kitchen.

• Utilities: Cap utilities in lease (e.g., landlord pays up to $250/mo; overages billed to guest).

• Term & pricing: Target 3-month base terms that auto-extend; price higher for ≤60-day stays; discount for 6-month commitments.

• Platform strategy: List on Furnished Finder (no booking fees; direct contracts), plus a backup listing on a travel-nurse marketplace.

• Compliance: City rental license + CO/inspection; if you ever pivot to <30-day STRs, you’ll need zoning compliance + STR registration.

Two quick numbers-first examples (all numbers illustrative)

A) Flip

• Buy: $169,000

• Rehab: $55,000 (new kitchen/bath, LVP, paint, roof tune-up, minor mech)

• ARV: $320,000

• Costs: $4,200 buy closing; ~$8,000 holds; 8% sell fee ($25,600)

• Projected profit: ~$55k–$60k before taxes (healthy spread for 4–5 months of work).

B) BRRRR → Mid-Term Rental

• Buy: $190,000

• Rehab: $25,000

• Furnish: $7,000

• All-in: ~$226,750

• Appraised: $260,000 → Refi @75%: $195,000

• Cash left in: ~$32,000

• PITI (illustrative): ~$1,750–$1,850

• MTR gross: $2,200 (target near LGH for a clean 2BR with parking)

• Less: 8% vacancy ($176), 10% mgmt/coord ($202), utilities $250, cleaning reserve $100 → Net before PITI ≈ $1,472

• Est. monthly cash flow: roughly break-even to slightly negative/positive depending on actual taxes, rate, and occupancy.
  Takeaway: Get the purchase price lower or push MTR rate via superior finishes, parking, and walkability.

Lancaster BRRRR & MTR playbook (what wins in 2025)

• Buy deeper than you think—rising rates and taxes compress cash flow.

• Engineer convenience for clinical workers: 10–12 min to LGH, parking, laundry, blackout curtains, quiet HVAC.

• Professionalize your listing (photos + floor plan + “What’s nearby” hospital map).

• Run three underwriting cases (Base, Bear, Bull) and only proceed if Bear is survivable.

• Stay compliant with licensing/inspections; they’re routine here and protect your asset.

Want help analyzing your next Lancaster flip or BRRRR?

I run these models every week for clients—flip, long-term, or travel-nurse mid-term near LGH.
Book a quick strategy call and bring a real address; I’ll underwrite it live with comps, ARV, CapEx, and rent scenarios.

Keep exploring Lancaster

• Living in Lancaster, PA: 10 Things to Know (moving guide): https://albertlinsdell.com/living-in-lancaster