277 7th St

New York, NY 11220

$4,200,000A-

40 bd · 20.0 ba · 15,708 sqft · Built — · MultiFamily · Active · 149 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $59,872/mo
• Mortgage (P&I): −$22,025
• Tax + insurance: −$7,000
• HOA: −$0
• Vac / Maint / Mgmt: −$12,573
• Net cashflow: $18,274/mo
• Annual: $219,283/yr
• Cap rate: 11.51%
• Cash-on-cash: 18.65%
• DSCR: 1.83
• 1% rule: 1.43%
• Cash to close: $1,176,000

Investor read

• This is a 20 × 2-bed/1.0-bath units multifamily listed at $4.20M.
• At list price, monthly cash flow is $18k ($219k/yr) — positive. Per door: $914/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($60k rent vs $4.20M).
• It's been on market 149 days — a 12% lower offer ($3.70M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.70M (12.0% below list) — sets the bar for market timing.
• In year one you build about $266k of equity ($29k loan paydown + $237k appreciation (5.6% local appreciation)).
• Location reads 75/100 on livability (#268 in NY, #4,188 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A; Watch: crime F, cost of living F.
• Market conditions: Rents rising fast (+11.0%/yr); 271 active listings in the ZIP; 10,063 units permitted in Kings County in 2024 (9,789 in 5+ unit buildings).
• Kings County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (5.6% appreciation + 8.0% rent growth), your $1.18M cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$425k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 61% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.5% vs local median 2.6% in New York — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• At $59,872/mo this rent would consume 1028% of the median local household income ($70k/yr) (locally 6563% 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 149 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?
• 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.
• 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?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.