2928 W 5th St Unit 8J

New York, NY 11224

$515,000D-

2 bd · 2.0 ba · 1,100 sqft · Built — · Condo · Pending · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,057/mo
• Mortgage (P&I): −$2,701
• Tax + insurance: −$1,285
• HOA: −$1,040
• Vac / Maint / Mgmt: −$852
• Net cashflow: $-1,821/mo
• Annual: $-21,846/yr
• Cap rate: 3.04%
• Cash-on-cash: -11.60%
• DSCR: 0.48
• 1% rule: 0.79%
• Cash to close: $144,200

Investor read

• This is a 2-bed/2.0-bath condo listed at $515k.
• At list price, monthly cash flow is $-2k ($-22k/yr) — negative.
• To cash-flow at today's rent, offer at most $402k (21.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $406k (21.2% below list).
• It's been on market 37 days — a 3% lower offer ($500k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $402k (21.9% below list) — sets the bar for cash-flow.
• In year one you build about $29k of equity ($4k loan paydown + $26k appreciation (5.0% 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.
• Watch-outs: flood insurance adds $427/mo; HOA is 26% of rent.
• Market conditions: Rents rising fast (+7.0%/yr); 114 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals at typical pace (median 25d on market — plan ~3-4 weeks tenant-placement turnaround); lower-income renter base — watch delinquency; 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 ~$47k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); major wind risk, 72% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $4,057/mo this rent would consume 112% of the median local household income ($44k/yr) (locally 4426% 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 37 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?