658 Sound Ave Unit E-10

Wading River, NY 11933

$135,000A-

1 bd · 1.0 ba · 900 sqft · Built 1969 · Manufactured · Active · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,553/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$225
• HOA: −$906
• Vac / Maint / Mgmt: −$746
• Net cashflow: $968/mo
• Annual: $11,618/yr
• Cap rate: 14.90%
• Cash-on-cash: 30.74%
• DSCR: 2.37
• 1% rule: 2.63%
• Cash to close: $37,800

Investor read

• This is a 1-bed/1.0-bath manufactured listed at $135k. Condition is rated good.
• At list price, monthly cash flow is $968 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $135k).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $5k of equity ($933 loan paydown + $4k appreciation (3.3% local appreciation)).
• Location reads 64/100 on livability (#779 in NY) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: amenities F, commute F, cost of living F.
• Shoreham-Wading River Central School District (suburban): math 80% / reading 81% proficiency, ranked #36 of 590 in NY (top 6%) — strong family-tenant draw, lease renewals of 3-5y typical; only 3% free/reduced lunch — higher-income household profile.
• Zoned schools: Miller Avenue School (427 students, 0% FRL) — zoned schools at 0% FRL track the district average.
• Watch-outs: HOA is 25% of rent.
• Market conditions: 85 active listings in the ZIP; 1,366 units permitted in Suffolk County in 2024 (216 in 5+ unit buildings).
• Suffolk County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (3.3% appreciation + 3.0% rent growth), your $38k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 14.9% vs local median 4.8% in Wading River — 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.

Questions for listing agent

• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.