550 Hart St

New York, NY 11221

$2,300,000D

None bd · None ba · 5,250 sqft · Built 1931 · MultiFamily · Active · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,186/mo
• Mortgage (P&I): −$12,061
• Tax + insurance: −$2,094
• HOA: −$0
• Vac / Maint / Mgmt: −$2,979
• Net cashflow: $-2,949/mo
• Annual: $-35,384/yr
• Cap rate: 4.75%
• Cash-on-cash: -5.49%
• DSCR: 0.76
• 1% rule: 0.62%
• Cash to close: $644,000

Investor read

• This is a 4 × 2-bed/1-bath units multifamily listed at $2.30M.
• At list price, monthly cash flow is $-3k ($-35k/yr) — negative. Per door: $-737/mo.
• To cash-flow at today's rent, offer at most $1.78M (22.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.42M (38.3% below list).
• It's been on market 25 days — a 2% lower offer ($2.27M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.42M (38.3% below list) — sets the bar for 1% rule.
• In year one you build about $246k of equity ($16k loan paydown + $230k appreciation (10.0% 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 rising fast (+5.2%/yr); 212 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 10,063 units permitted in Kings County in 2024 (9,789 in 5+ unit buildings).
• Kings County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 8 sale attempts since 22y 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 $750k; list at $2.30M implies a 207% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$395k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.8% 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 $14,186/mo this rent would consume 199% of the median local household income ($86k/yr) (locally 8053% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• 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?
• 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?
• 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?