7 Fernwood Ave

Rye, NY 10580

$2,100,000D

4 bd · 2.0 ba · 2,224 sqft · Built 1929 · SingleFamily · Active · 56 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,392/mo
• Mortgage (P&I): −$11,013
• Tax + insurance: −$3,104
• HOA: −$0
• Vac / Maint / Mgmt: −$1,762
• Net cashflow: $-7,488/mo
• Annual: $-89,850/yr
• Cap rate: 2.26%
• Cash-on-cash: -14.41%
• DSCR: 0.36
• 1% rule: 0.40%
• Cash to close: $588,000

Investor read

• This is a 4-bed/2.0-bath single-family listed at $2.10M.
• At list price, monthly cash flow is $-7k ($-90k/yr) — negative.
• To cash-flow at today's rent, offer at most $777k (63.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $839k (60.0% below list).
• It's been on market 56 days — a 3% lower offer ($2.04M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $777k (63.0% below list) — sets the bar for cash-flow.
• In year one you build about $154k of equity ($15k loan paydown + $140k appreciation (6.6% local appreciation)).
• Location reads 70/100 on livability (#431 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+; Watch: amenities F, cost of living F, health & safety F.
• Rye City School District (suburban): math 89% / reading 93% proficiency, ranked #4 of 590 in NY (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical; only 2% free/reduced lunch — higher-income household profile.
• Zoned schools: Milton School (math 95% / reading 95%, grade A+, #5 of 2,108 statewide, top 0%, 349 students, 0% FRL); Rye Middle School (math 77% / reading 92%, grade A+, #13 of 729 statewide, top 2%, 685 students, 0% FRL); Rye High School (math 100% / reading 87%, grade A+, #141 of 1,100 statewide, top 13%, 903 students, 0% FRL) — zoned schools at 0% FRL track the district average.
• Watch-outs: flood insurance adds $427/mo; built in 1929 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 121 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals leasing fast (median 5d 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.
• 3 sale attempts 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 $1.40M; list at $2.10M implies a 50% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$246k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.3% vs local median 1.5% in Rye — 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

• 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 56 days. Have you received any prior offers? Is the seller open to a 63% concession, seller financing, or rate buy-down credit?
• Built in 1929 — 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?
• 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?
• 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.