664-666 N Division St

Peekskill, NY 10566

$950,000B-

8 bd · 4.0 ba · 4,815 sqft · Built 1934 · MultiFamily · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,716/mo
• Mortgage (P&I): −$4,982
• Tax + insurance: −$1,572
• HOA: −$0
• Vac / Maint / Mgmt: −$2,460
• Net cashflow: $2,702/mo
• Annual: $32,424/yr
• Cap rate: 9.71%
• Cash-on-cash: 12.19%
• DSCR: 1.54
• 1% rule: 1.23%
• Cash to close: $266,000

Investor read

• This is a 4 × 2-bed/?-bath units multifamily listed at $950k.
• At list price, monthly cash flow is $3k ($32k/yr) — positive. Per door: $676/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $950k).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $28k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#132 in NY, #2,121 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, crime A-; Watch: amenities F, cost of living F.
• Peekskill City School District (suburban): math 37% / reading 36% proficiency, ranked #670 of 755 in NY (top 89%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Hillcrest School (math 24% / reading 37%, grade F, #1,684 of 2,108 statewide, top 80%, 560 students, 61% FRL); Peekskill Middle School (math 75% / reading 70%, grade A, #75 of 729 statewide, top 10%, 794 students, 63% FRL); Peekskill High School (math 79% / reading 44%, grade B-, #841 of 1,100 statewide, top 76%, 1,017 students, 60% FRL) — zoned schools at 61% FRL track the district average.
• Zoned-school proficiency averages 55% at this address vs 36% district-wide (+18 pts) — the actual schools serving this property are materially stronger than the Peekskill City School District average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1934 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 117 active listings in the ZIP; solid renter incomes; 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.
• Climate carrying-cost: extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.7% vs local median 3.2% in Peekskill — 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 $11,716/mo this rent would consume 164% of the median local household income ($86k/yr) (locally 1507% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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 1934 — 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.