171 Pauline St

Holbrook, NY 11741

$549,000D

3 bd · 1.5 ba · 1,392 sqft · Built 1974 · SingleFamily · Pending · 48 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,789/mo
• Mortgage (P&I): −$2,879
• Tax + insurance: −$954
• HOA: −$0
• Vac / Maint / Mgmt: −$796
• Net cashflow: $-840/mo
• Annual: $-10,076/yr
• Cap rate: 4.46%
• Cash-on-cash: -6.56%
• DSCR: 0.71
• 1% rule: 0.69%
• Cash to close: $153,720

Investor read

• This is a 3-bed/1.5-bath single-family listed at $549k.
• At list price, monthly cash flow is $-840 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $401k (27.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $379k (31.0% below list).
• It's been on market 48 days — a 3% lower offer ($533k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $379k (31.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#658 in NY) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Sachem Central School District (suburban): math 69% / reading 76% proficiency, ranked #86 of 590 in NY (top 15%) — strong family-tenant draw, lease renewals of 3-5y typical; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Hiawatha School (math 57% / reading 57%, grade C+, #842 of 2,108 statewide, top 43%, 603 students, 36% FRL); Seneca Middle School (math 62% / reading 62%, grade B+, #136 of 729 statewide, top 20%, 973 students, 22% FRL); Sachem High School North (math 96% / reading 95%, grade A+, #76 of 1,100 statewide, top 7%, 1,923 students, 25% FRL).
• Market conditions: Rents rising fast (+7.3%/yr); 95 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 1,366 units permitted in Suffolk County in 2024 (216 in 5+ unit buildings).
• Suffolk County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $360k; list at $549k implies a 52% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 77% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.5% vs local median 3.5% in Holbrook — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• This rent runs 32% of the median local income ($144k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 48 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• Built in 1974 — 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.
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.