250 W Merrick Rd Unit 2R

Freeport, NY 11520

$325,888F

2 bd · 1.0 ba · 1,057 sqft · Built 1960 · Condo · Pending · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,766/mo
• Mortgage (P&I): −$1,709
• Tax + insurance: −$543
• HOA: −$1,402
• Vac / Maint / Mgmt: −$581
• Net cashflow: $-1,469/mo
• Annual: $-17,624/yr
• Cap rate: 0.88%
• Cash-on-cash: -19.31%
• DSCR: 0.14
• 1% rule: 0.85%
• Cash to close: $91,249

Investor read

• This is a 2-bed/1.0-bath condo listed at $326k.
• At list price, monthly cash flow is $-1k ($-18k/yr) — negative.
• To cash-flow at today's rent, offer at most $316k (3.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $277k (15.1% below list).
• It's been on market 73 days — a 6% lower offer ($306k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $277k (15.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#69 in NY, #1,033 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+; Watch: cost of living F.
• Freeport Union Free School District (suburban): math 49% / reading 55% proficiency, ranked #325 of 590 in NY (top 55%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bayview Avenue School (math 67% / reading 52%, grade B-, #745 of 2,108 statewide, top 39%, 516 students, 69% FRL); John W Dodd Middle School (math 16% / reading 41%, grade F, #569 of 729 statewide, top 78%, 986 students, 67% FRL); Freeport High School (math 82% / reading 85%, grade A, #409 of 1,100 statewide, top 39%, 2,264 students, 62% FRL).
• Watch-outs: HOA is 51% of rent.
• Market conditions: 199 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 57% of comp listings sitting > 30 days — soft ceiling on asking rent; 824 units permitted in Nassau County in 2024 (153 in 5+ unit buildings).
• Nassau County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts; this cycle's ask is 9% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Climate carrying-cost: major wind risk, 69% 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 0.9% vs local median 3.0% in Freeport — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 73 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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?