2850 State Highway 11b

Parishville, NY 12965

$279,000D

4 bd · 2.0 ba · 2,700 sqft · Built 1825 · MultiFamily · Pending · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,297/mo
• Mortgage (P&I): −$1,463
• Tax + insurance: −$541
• HOA: −$0
• Vac / Maint / Mgmt: −$482
• Net cashflow: $-190/mo
• Annual: $-2,279/yr
• Cap rate: 5.48%
• Cash-on-cash: -2.92%
• DSCR: 0.87
• 1% rule: 0.82%
• Cash to close: $78,120

Investor read

• This is a 2 × 2-bed/1.5-bath units multifamily listed at $279k.
• At list price, monthly cash flow is $-190 ($-2k/yr) — negative. Per door: $-95/mo.
• To cash-flow at today's rent, offer at most $245k (12.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $230k (17.7% below list).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $230k (17.7% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($2k loan paydown + $10k appreciation (3.6% local appreciation)).
• Location reads 60/100 on livability (#997 in NY) — a middle-class / working-renter tenant base. Strengths: cost of living A+; Watch: employment C-, health & safety C-, crime F.
• Parishville-Hopkinton Central School District (rural): math 65% / reading 51% proficiency, ranked #326 of 755 in NY (top 43%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1825 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 9 active listings in the ZIP; 215 units permitted in St. Lawrence County in 2024 (0 in 5+ unit buildings).
• St. Lawrence County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $29k; list at $279k implies a 862% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$40k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• 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 1825 — 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.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?