118 Round Hill Rd

Dobbs Ferry, NY 10522

$665,000D

2 bd · 2.5 ba · 1,800 sqft · Built 1978 · SingleFamily · Pending · 420 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,712/mo
• Mortgage (P&I): −$3,487
• Tax + insurance: −$768
• HOA: −$580
• Vac / Maint / Mgmt: −$990
• Net cashflow: $-1,113/mo
• Annual: $-13,354/yr
• Cap rate: 4.28%
• Cash-on-cash: -7.17%
• DSCR: 0.68
• 1% rule: 0.71%
• Cash to close: $186,200

Investor read

• This is a 2-bed/2.5-bath single-family listed at $665k.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative.
• To cash-flow at today's rent, offer at most $468k (29.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $471k (29.1% below list).
• It's been on market 420 days — a 12% lower offer ($585k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $468k (29.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#329 in NY) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, employment A+; Watch: amenities F, commute F, cost of living F.
• Dobbs Ferry Union Free School District (suburban): math 66% / reading 77% proficiency, ranked #80 of 590 in NY (top 14%) — strong family-tenant draw, lease renewals of 3-5y typical; only 10% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising (+3.8%/yr); 64 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals leasing fast (median 12d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 954 units permitted in Westchester County in 2024 (649 in 5+ unit buildings).
• Westchester County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 7 sale attempts since 21y ago; this cycle's ask has dropped $65k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $519k; 28% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: major wind risk, 27% 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 4.3% vs local median 2.3% in Dobbs Ferry — 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.
• This rent runs 34% of the median local income ($165k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• It's been on market 420 days. Have you received any prior offers? Is the seller open to a 30% concession, seller financing, or rate buy-down credit?
• Built in 1978 — 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?
• 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 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?
• 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?