490 Main St Unit B-10

Farmingdale, NY 11735

$239,000F

1 bd · 1.0 ba · 24,666 sqft · Built 1961 · Condo · Pending · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,699/mo
• Mortgage (P&I): −$1,253
• Tax + insurance: −$398
• HOA: −$32,312
• Vac / Maint / Mgmt: −$567
• Net cashflow: $-31,831/mo
• Annual: $-381,976/yr
• Cap rate: -153.53%
• Cash-on-cash: -570.79%
• DSCR: -24.40
• 1% rule: 1.13%
• Cash to close: $66,920

Investor read

• This is a 1-bed/1.0-bath condo listed at $239k.
• At list price, monthly cash flow is $-32k ($-382k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $239k).
• It's been on market 28 days — a 2% lower offer ($235k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $235k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#75 in NY, #1,185 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: cost of living F.
• Farmingdale Union Free School District (suburban): math 59% / reading 56% proficiency, ranked #210 of 590 in NY (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 17% free/reduced lunch — higher-income household profile.
• Zoned schools: Northside Elementary School (math 57% / reading 57%, grade C+, #842 of 2,108 statewide, top 43%, 381 students, 22% FRL); Howitt School (math 36% / reading 43%, grade F, #418 of 729 statewide, top 59%, 1,199 students, 22% FRL); Farmingdale Senior High School (math 92% / reading 67%, grade A-, #518 of 1,100 statewide, top 51%, 1,703 students, 23% FRL).
• Watch-outs: HOA is 1197% of rent.
• Market conditions: 109 active listings in the ZIP; high-income renter base; 824 units permitted in Nassau County in 2024 (153 in 5+ unit buildings).
• Nassau County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 9y 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 $142k; list at $239k implies a 68% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 61% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate -153.5% vs local median 3.2% in Farmingdale — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• Built in 1961 — 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?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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?
• 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.