568 High Rd

Eldred, NY 12737

$399,000D

5 bd · 2.0 ba · 2,636 sqft · Built 1968 · MultiFamily · Active · 49 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,005/mo
• Mortgage (P&I): −$2,092
• Tax + insurance: −$427
• HOA: −$0
• Vac / Maint / Mgmt: −$421
• Net cashflow: $-935/mo
• Annual: $-11,225/yr
• Cap rate: 3.48%
• Cash-on-cash: -10.05%
• DSCR: 0.55
• 1% rule: 0.50%
• Cash to close: $111,720

Investor read

• This is a 5-bed/2.0-bath multifamily listed at $399k.
• At list price, monthly cash flow is $-935 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $234k (41.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $200k (49.8% below list).
• It's been on market 49 days — a 3% lower offer ($387k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $200k (49.8% below list) — sets the bar for 1% rule.
• In year one you build about $43k of equity ($3k loan paydown + $40k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Eldred Central School District (rural): math 33% / reading 50% proficiency, ranked #495 of 590 in NY (top 84%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: George Ross Mackenzie Elementary School (math 22% / reading 47%, grade F, #1,577 of 2,108 statewide, top 77%, 242 students, 38% FRL); Eldred Junior-Senior High School (math 47% / reading 57%, grade D+, #946 of 1,100 statewide, top 88%, 230 students, 46% FRL).
• Market conditions: 66 active listings in the ZIP; 739 units permitted in Sullivan County in 2024 (5 in 5+ unit buildings).
• Sullivan County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 2, paydown + projected appreciation supports a ~$69k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.5% vs local median 2.3% in Eldred — 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?
• It's been on market 49 days. Have you received any prior offers? Is the seller open to a 50% concession, seller financing, or rate buy-down credit?
• Built in 1968 — 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.
• 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 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.