3514 12th Ave

New York, NY 11218

$2,199,000D-

28 bd · 20.0 ba · 3,200 sqft · Built 1931 · MultiFamily · Active · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $13,357/mo
• Mortgage (P&I): −$11,532
• Tax + insurance: −$3,665
• HOA: −$0
• Vac / Maint / Mgmt: −$2,805
• Net cashflow: $-4,645/mo
• Annual: $-55,737/yr
• Cap rate: 3.76%
• Cash-on-cash: -9.05%
• DSCR: 0.60
• 1% rule: 0.61%
• Cash to close: $615,720

Investor read

• This is a 4 × 3-bed/1.5-bath units multifamily listed at $2.20M.
• At list price, monthly cash flow is $-5k ($-56k/yr) — negative. Per door: $-1k/mo.
• To cash-flow at today's rent, offer at most $1.53M (30.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.34M (39.3% below list).
• It's been on market 93 days — a 9% lower offer ($2.00M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.34M (39.3% below list) — sets the bar for 1% rule.
• In year one you build about $146k of equity ($15k loan paydown + $130k appreciation (5.9% 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.
• Watch-outs: built in 1931 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.3%/yr); 167 active listings in the ZIP; solid renter incomes; 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.
• By year 2, paydown + projected appreciation supports a ~$233k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 62% 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 3.8% 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 $13,357/mo this rent would consume 165% of the median local household income ($97k/yr) (locally 4459% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 93 days. Have you received any prior offers? Is the seller open to a 39% 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?
• Built in 1931 — 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.
• 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?