213 E 120th St

New York, NY 10035

$1,895,000C

28 bd · 20.0 ba · 4,320 sqft · Built 1899 · MultiFamily · Active · 72 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $18,012/mo
• Mortgage (P&I): −$9,938
• Tax + insurance: −$3,158
• HOA: −$0
• Vac / Maint / Mgmt: −$3,783
• Net cashflow: $1,134/mo
• Annual: $13,603/yr
• Cap rate: 7.01%
• Cash-on-cash: 2.56%
• DSCR: 1.11
• 1% rule: 0.95%
• Cash to close: $530,600

Investor read

• This is a 4 × 7-bed/5.0-bath units multifamily listed at $1.90M. Condition is rated fair.
• At list price, monthly cash flow is $1k ($14k/yr) — positive. Per door: $283/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.80M (4.9% below list).
• It's been on market 72 days — a 6% lower offer ($1.78M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.78M (6.0% below list) — sets the bar for market timing.
• In year one you build about $74k of equity ($13k loan paydown + $61k appreciation (3.2% 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.
• Watch-outs: built in 1899 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.6%/yr); 71 active listings in the ZIP; 4,467 units permitted in New York County in 2024 (4,463 in 5+ unit buildings).
• New York County population projected at +21% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 3y ago; this cycle's ask has dropped $100k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.2% appreciation + 5.6% rent growth), your $531k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$121k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 7.0% 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 $18,012/mo this rent would consume 479% of the median local household income ($45k/yr) (locally 3992% 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 72 days. Have you received any prior offers? Is the seller open to a 6% 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 1899 — 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?

Repairs flagged (vision-AI assessment)

• Minor: paint touch-ups — Some areas of the exterior paint may need touch-ups.
• Minor: window screens — Window screens may need cleaning or replacement.
• Minor: HVAC maintenance — Regular HVAC maintenance is recommended to ensure efficiency and longevity.
• Minor: landscaping — Some landscaping improvements could enhance curb appeal and attract tenants/investors.