3 Elm St

Chappaqua, NY 10514

$1,095,000D

4 bd · 3.0 ba · 2,108 sqft · Built 1905 · MultiFamily · Pending · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,291/mo
• Mortgage (P&I): −$5,742
• Tax + insurance: −$1,770
• HOA: −$0
• Vac / Maint / Mgmt: −$1,531
• Net cashflow: $-1,752/mo
• Annual: $-21,026/yr
• Cap rate: 4.43%
• Cash-on-cash: -6.64%
• DSCR: 0.70
• 1% rule: 0.67%
• Cash to close: $306,600

Investor read

• This is a 2 × 2-bed/2.0-bath units multifamily listed at $1.09M.
• At list price, monthly cash flow is $-2k ($-21k/yr) — negative. Per door: $-876/mo.
• To cash-flow at today's rent, offer at most $785k (28.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $729k (33.4% below list).
• It's been on market 16 days — a 2% lower offer ($1.08M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $729k (33.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $33k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#99 in NY, #1,518 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: commute C-, amenities F, cost of living F.
• Chappaqua Central School District (suburban): math 81% / reading 88% proficiency, ranked #5 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: Douglas G Grafflin School (math 82% / reading 92%, grade A+, #69 of 2,108 statewide, top 4%, 438 students, 4% FRL); Robert E Bell School (math 71% / reading 84%, grade A+, #39 of 729 statewide, top 5%, 594 students, 6% FRL); Horace Greeley High School (math 100% / reading 100%, grade A+, #1 of 1,100 statewide, top 0%, 1,152 students, 0% FRL) — zoned schools at 4% FRL track the district average.
• Watch-outs: flood insurance adds $56/mo; built in 1905 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 75 active listings in the ZIP; 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 since 10y 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 $418k; list at $1.09M implies a 162% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe flood risk; 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 4.4% vs local median 1.5% in Chappaqua — 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?
• 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 1905 — 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?