37 7th St

Hillburn, NY 10901

$575,000C

4 bd · 3.0 ba · 1,652 sqft · Built 1890 · MultiFamily · Active · 74 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,822/mo
• Mortgage (P&I): −$3,015
• Tax + insurance: −$1,014
• HOA: −$0
• Vac / Maint / Mgmt: −$1,223
• Net cashflow: $570/mo
• Annual: $6,842/yr
• Cap rate: 7.60%
• Cash-on-cash: 4.66%
• DSCR: 1.21
• 1% rule: 1.01%
• Cash to close: $161,000

Investor read

• This is a 2 × 2-bed/1.5-bath units multifamily listed at $575k. Condition is rated fair.
• At list price, monthly cash flow is $570 ($7k/yr) — positive. Per door: $285/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $575k).
• It's been on market 74 days — a 6% lower offer ($540k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $540k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 54/100 on livability (#1,151 in NY) — a working-class tenant base; expect higher turnover. Strengths: crime A+, housing A, employment B+; Watch: schools F, amenities F, commute F.
• Suffern Central School District (suburban): math 53% / reading 59% proficiency, ranked #242 of 590 in NY (top 41%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $56/mo; built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 225 active listings in the ZIP; solid renter incomes; 429 units permitted in Rockland County in 2024 (231 in 5+ unit buildings).
• Rockland County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 5 sale attempts since 2y 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 $470k; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: severe flood risk; major wildfire risk; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $5,822/mo this rent would consume 65% of the median local household income ($108k/yr) (locally 828% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 74 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 1890 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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)

• Major: Exterior siding — Significant damage and discoloration.
• Major: Hardwood floors — Severe wear and tear.
• Major: Interior walls — Peeling paint and signs of wear.
• Major: Windows — Peeling paint and old appearance.
• Major: HVAC units — Old and may require maintenance or replacement.
• Major: Landscaping — Sparse and unkempt, with debris scattered around the property.