865 Madison Ave

Albany, NY 12208

$499,900D-

9 bd · 6.9 ba · 7,422 sqft · Built 1900 · MultiFamily · Active · 135 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,050/mo
• Mortgage (P&I): −$2,622
• Tax + insurance: −$1,538
• HOA: −$0
• Vac / Maint / Mgmt: −$850
• Net cashflow: $-960/mo
• Annual: $-11,521/yr
• Cap rate: 3.99%
• Cash-on-cash: -8.23%
• DSCR: 0.63
• 1% rule: 0.81%
• Cash to close: $139,972

Investor read

• This is a 3 × 3-bed/?-bath units multifamily listed at $500k. Condition is rated fair.
• At list price, monthly cash flow is $-960 ($-12k/yr) — negative. Per door: $-320/mo.
• To cash-flow at today's rent, offer at most $330k (33.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $405k (19.0% below list).
• It's been on market 135 days — a 12% lower offer ($440k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $330k (33.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#129 in NY, #2,083 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A+; Watch: employment C-, crime F.
• Albany City School District (urban): math 37% / reading 40% proficiency, ranked #543 of 590 in NY (top 92%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: property tax is 3.2% of price; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 133 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 675 units permitted in Albany County in 2024 (451 in 5+ unit buildings).
• Albany County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 5 sale attempts since 7y ago; this cycle's ask has dropped $180k (26%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 4.0% vs local median 6.0% in Albany — 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?
• It's been on market 135 days. Have you received any prior offers? Is the seller open to a 34% 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 1900 — 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)?

Repairs flagged (vision-AI assessment)

• Moderate: Exterior siding — The exterior siding shows some discoloration and wear.
• Minor: Landscaping — The landscaping appears somewhat overgrown and could benefit from trimming and maintenance.