831 56th St

New York, NY 11220

$3,999,000D

24 bd · 8.8 ba · — sqft · Built — · MultiFamily · Active · 487 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $26,620/mo
• Mortgage (P&I): −$20,971
• Tax + insurance: −$6,665
• HOA: −$0
• Vac / Maint / Mgmt: −$5,590
• Net cashflow: $-6,606/mo
• Annual: $-79,277/yr
• Cap rate: 4.31%
• Cash-on-cash: -7.08%
• DSCR: 0.68
• 1% rule: 0.67%
• Cash to close: $1,119,720

Investor read

• This is a 8 × 3-bed/1.1-bath units multifamily listed at $4.00M.
• At list price, monthly cash flow is $-7k ($-79k/yr) — negative. Per door: $-826/mo.
• To cash-flow at today's rent, offer at most $3.04M (23.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.66M (33.4% below list).
• It's been on market 487 days — a 12% lower offer ($3.52M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.66M (33.4% below list) — sets the bar for 1% rule.
• In year one you build about $253k of equity ($28k loan paydown + $225k appreciation (5.6% 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 (+11.0%/yr); 271 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.
• By year 2, paydown + projected appreciation supports a ~$405k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.3% 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 $26,620/mo this rent would consume 457% of the median local household income ($70k/yr) (locally 6563% 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 487 days. Have you received any prior offers? Is the seller open to a 33% 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?
• 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?
• 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?