918 Danby Rd Unit 1-2

South Hill, NY 14850

$495,000B

8 bd · 3.6 ba · 2,859 sqft · Built 1938 · MultiFamily · Active · 174 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,897/mo
• Mortgage (P&I): −$2,596
• Tax + insurance: −$825
• HOA: −$0
• Vac / Maint / Mgmt: −$1,238
• Net cashflow: $1,238/mo
• Annual: $14,854/yr
• Cap rate: 9.29%
• Cash-on-cash: 10.72%
• DSCR: 1.48
• 1% rule: 1.19%
• Cash to close: $138,600

Investor read

• This is a 2 × 4-bed/1.8-bath units multifamily listed at $495k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($15k/yr) — positive. Per door: $619/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $495k).
• It's been on market 174 days — a 12% lower offer ($436k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $436k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#471 in NY) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: schools C-, crime D+, cost of living D+.
• Ithaca City School District (urban): math 57% / reading 71% proficiency, ranked #195 of 590 in NY (top 33%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1938 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.2%/yr); 327 active listings in the ZIP; 382 units permitted in Tompkins County in 2024 (208 in 5+ unit buildings).
• Tompkins County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 5.2% rent growth), your $139k cash investment doubles in ~9 years — after that, you're playing with house money.
• At $5,897/mo this rent would consume 99% of the median local household income ($71k/yr) (locally 5169% 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 174 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 1938 — 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 D 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)

• Moderate: Exterior siding — Weathered appearance suggests need for repainting or replacement.
• Minor: Kitchen cabinets — Dated design, but not visibly damaged.
• Minor: Bathroom fixtures — Standard fixtures, but may need updating.