36 Prospect St

Nyack, NY 10960

$930,000D

6 bd · 5.0 ba · 2,193 sqft · Built 1923 · MultiFamily · Pending · 249 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,290/mo
• Mortgage (P&I): −$4,877
• Tax + insurance: −$1,967
• HOA: −$0
• Vac / Maint / Mgmt: −$1,531
• Net cashflow: $-1,085/mo
• Annual: $-13,018/yr
• Cap rate: 4.89%
• Cash-on-cash: -5.00%
• DSCR: 0.78
• 1% rule: 0.78%
• Cash to close: $260,400

Investor read

• This is a 2×1bd/1.0ba + 1×3bd/1.0ba units multifamily listed at $930k.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative. Per door: $-362/mo.
• To cash-flow at today's rent, offer at most $738k (20.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $729k (21.6% below list).
• It's been on market 249 days — a 12% lower offer ($818k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $729k (21.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $28k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#231 in NY, #3,632 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, health & safety A; Watch: amenities F, cost of living F.
• Nyack Union Free School District (suburban): math 78% / reading 78% proficiency, ranked #62 of 590 in NY (top 10%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Watch-outs: built in 1923 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+6.1%/yr); 116 active listings in the ZIP; high-income renter base; 429 units permitted in Rockland County in 2024 (231 in 5+ unit buildings).
• Rockland County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts; this cycle's ask has dropped $60k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $190k; list at $930k implies a 390% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wind risk, 26% 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.
• Cap rate 4.9% vs local median 2.5% in Nyack — 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 $7,290/mo this rent would consume 70% of the median local household income ($126k/yr) (locally 643% 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 249 days. Have you received any prior offers? Is the seller open to a 22% 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?
• Built in 1923 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?