408 E 138th St

New York, NY 10454

$2,799,000B+

24 bd · 24.0 ba · 8,328 sqft · Built 1931 · MultiFamily · Active · 1091 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $41,841/mo
• Mortgage (P&I): −$14,678
• Tax + insurance: −$4,829
• HOA: −$0
• Vac / Maint / Mgmt: −$8,787
• Net cashflow: $13,547/mo
• Annual: $162,565/yr
• Cap rate: 12.10%
• Cash-on-cash: 20.74%
• DSCR: 1.92
• 1% rule: 1.49%
• Cash to close: $783,720

Investor read

• This is a 8 × 3-bed/3.0-bath units multifamily listed at $2.80M.
• At list price, monthly cash flow is $14k ($163k/yr) — positive. Per door: $2k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($42k rent vs $2.80M).
• It's been on market 1091 days — a 12% lower offer ($2.46M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.46M (12.0% below list) — sets the bar for market timing.
• In year one you build about $150k of equity ($19k loan paydown + $131k appreciation (4.7% 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.
• Zoned schools: Elm Tree Elementary School (math 27% / reading 52%, grade F, #1,444 of 2,108 statewide, top 71%, 806 students, 94% FRL); Jhs 383 Philippa Schuyler (math 32% / reading 67%, grade C, #280 of 729 statewide, top 40%, 822 students, 85% FRL); Midwood High School (math 94% / reading 96%, grade A+, #83 of 1,100 statewide, top 8%, 4,062 students, 73% FRL).
• Watch-outs: built in 1931 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 19 active listings in the ZIP; lower-income renter base — watch delinquency; 6,929 units permitted in Bronx County in 2024 (6,829 in 5+ unit buildings).
• Bronx County population projected at +21% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $1.00M; list at $2.80M implies a 180% gain — meaningful room to come down on a strong offer.
• At projected returns (4.7% appreciation + 0.6% rent growth), your $784k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$241k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 12.1% 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 $41,841/mo this rent would consume 2085% of the median local household income ($24k/yr) (locally 5002% 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 1091 days. Have you received any prior offers? Is the seller open to a 12% 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?