213 Johnson Ave

New York, NY 11206

$2,799,000D-

4 bd · 4.0 ba · 4,500 sqft · Built 2001 · MultiFamily · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $17,297/mo
• Mortgage (P&I): −$14,678
• Tax + insurance: −$4,665
• HOA: −$0
• Vac / Maint / Mgmt: −$3,632
• Net cashflow: $-5,679/mo
• Annual: $-68,144/yr
• Cap rate: 3.86%
• Cash-on-cash: -8.69%
• DSCR: 0.61
• 1% rule: 0.62%
• Cash to close: $783,720

Investor read

• This is a 4 × 1.0-bed/1.0-bath units multifamily listed at $2.80M.
• At list price, monthly cash flow is $-6k ($-68k/yr) — negative. Per door: $-1k/mo.
• To cash-flow at today's rent, offer at most $1.98M (29.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.73M (38.2% below list).
• It's been on market 40 days — a 3% lower offer ($2.72M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.73M (38.2% below list) — sets the bar for 1% rule.
• In year one you build about $299k of equity ($19k loan paydown + $280k 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.
• Market conditions: Rents rising fast (+5.0%/yr); 59 active listings in the ZIP; 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.
• 2 sale attempts since 2y 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.
• By year 2, paydown + projected appreciation supports a ~$481k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.9% 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 $17,297/mo this rent would consume 338% of the median local household income ($61k/yr) (locally 7470% 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?
• It's been on market 40 days. Have you received any prior offers? Is the seller open to a 38% 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?
• 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?