12 May St

Poughkeepsie, NY 12603

$375,000C

6 bd · 2.0 ba · 1,932 sqft · Built 1925 · MultiFamily · Active · 77 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,350/mo
• Mortgage (P&I): −$1,967
• Tax + insurance: −$1,199
• HOA: −$0
• Vac / Maint / Mgmt: −$914
• Net cashflow: $271/mo
• Annual: $3,257/yr
• Cap rate: 7.16%
• Cash-on-cash: 3.10%
• DSCR: 1.14
• 1% rule: 1.16%
• Cash to close: $105,000

Investor read

• This is a 2 × 3-bed/?-bath units multifamily listed at $375k. Condition is rated fair.
• At list price, monthly cash flow is $271 ($3k/yr) — positive. Per door: $136/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $375k).
• It's been on market 77 days — a 6% lower offer ($352k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $352k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#165 in NY, #2,577 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, housing A-; Watch: employment D+, crime F.
• Poughkeepsie City School District (suburban): math 29% / reading 42% proficiency, ranked #559 of 590 in NY (top 95%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 73% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Smith Early Learning Center (297 students, 80% FRL); Poughkeepsie Middle School (math 8% / reading 37%, grade F, #650 of 729 statewide, top 90%, 877 students, 82% FRL); Poughkeepsie High School (math 59% / reading 67%, grade B-, #819 of 1,100 statewide, top 74%, 1,165 students, 74% FRL).
• Watch-outs: property tax is 3.3% of price; built in 1925 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.0%/yr); 292 active listings in the ZIP; solid renter incomes; 620 units permitted in Dutchess County in 2024 (242 in 5+ unit buildings).
• Dutchess County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 6y 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 $220k; list at $375k implies a 70% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.2% vs local median 2.6% in Poughkeepsie — 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

• It's been on market 77 days. Have you received any prior offers? Is the seller open to a 6% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1925 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen appliances — The appliances appear outdated and need to be replaced.
• Minor: Bathroom fixtures — The bathroom has a dated design and the fixtures need to be updated.
• Minor: Flooring — The flooring in the living areas appears to be in fair condition, but there are some visible signs of wear and tear.
• Minor: Paint — The interior walls and ceilings appear to be in fair condition, but there are some visible signs of wear and tear.
• Minor: Windows — The windows appear to be in fair condition, but there are some visible signs of wear and tear.
• Minor: HVAC system — The HVAC system appears to be in fair condition, but there are some visible signs of wear and tear.