Habgood Rd

Cuba, NY 14714

$112,000D

1 bd · 1.0 ba · 420 sqft · Built 2016 · SingleFamily · Pending · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $789/mo
• Mortgage (P&I): −$587
• Tax + insurance: −$181
• HOA: −$0
• Vac / Maint / Mgmt: −$166
• Net cashflow: $-146/mo
• Annual: $-1,746/yr
• Cap rate: 4.73%
• Cash-on-cash: -5.57%
• DSCR: 0.75
• 1% rule: 0.70%
• Cash to close: $31,360

Investor read

• This is a 1-bed/1.0-bath single-family listed at $112k.
• At list price, monthly cash flow is $-146 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $86k (23.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $79k (29.6% below list).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $79k (29.6% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($774 loan paydown + $11k appreciation (10.0% local appreciation)).
• Location reads 73/100 on livability (#309 in NY) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: employment D, amenities F, commute F.
• Cuba-Rushford Central School District (rural): math 44% / reading 61% proficiency, ranked #350 of 590 in NY (top 59%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Cuba-Rushford Elementary School (math 57% / reading 62%, grade B-, #745 of 2,108 statewide, top 39%, 363 students, 57% FRL); Cuba-Rushford Middle School (math 12% / reading 52%, grade F, #511 of 729 statewide, top 71%, 167 students, 54% FRL); Cuba-Rushford High School (math 95% / reading 84%, grade A+, #250 of 1,100 statewide, top 24%, 209 students, 53% FRL).
• Market conditions: 2 active listings in the ZIP; 87 units permitted in Allegany County in 2024 (0 in 5+ unit buildings).
• Allegany County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 3, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.7% vs local median 3.1% in Cuba — 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.

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?
• 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?
• 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?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.