232 3rd St

Scotia, NY 12302

$275,000C+

3 bd · 2.0 ba · 1,504 sqft · Built 1903 · MultiFamily · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,746/mo
• Mortgage (P&I): −$1,442
• Tax + insurance: −$611
• HOA: −$0
• Vac / Maint / Mgmt: −$787
• Net cashflow: $907/mo
• Annual: $10,879/yr
• Cap rate: 10.25%
• Cash-on-cash: 14.13%
• DSCR: 1.63
• 1% rule: 1.36%
• Cash to close: $77,000

Investor read

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $275k.
• At list price, monthly cash flow is $907 ($11k/yr) — positive. Per door: $453/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $275k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#173 in NY, #2,688 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, employment A; Watch: crime D, amenities D, commute F.
• Scotia-Glenville Central School District (suburban): math 57% / reading 68% proficiency, ranked #193 of 590 in NY (top 33%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Scotia-Glenville Senior High School (math 92% / reading 95%, grade A+, #131 of 1,100 statewide, top 13%, 736 students, 34% FRL).
• Zoned-school proficiency averages 94% at this address vs 62% district-wide (+31 pts) — the actual schools serving this property are materially stronger than the Scotia-Glenville Central School District average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1903 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 127 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 154 units permitted in Schenectady County in 2024 (54 in 5+ unit buildings).
• Schenectady County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 3y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $132k; list at $275k implies a 108% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $77k cash investment doubles in ~9 years — after that, you're playing with house money.
• Cap rate 10.2% vs local median 4.3% in Scotia — 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 $3,746/mo this rent would consume 46% of the median local household income ($98k/yr) (locally 632% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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 1903 — 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 A-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 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?
• 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.