57 Aloma Rd

Rocky Point, NY 11778

$619,000D

8 bd · 3.0 ba · 2,003 sqft · Built 1949 · MultiFamily · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,826/mo
• Mortgage (P&I): −$3,246
• Tax + insurance: −$1,623
• HOA: −$0
• Vac / Maint / Mgmt: −$1,223
• Net cashflow: $-266/mo
• Annual: $-3,198/yr
• Cap rate: 5.88%
• Cash-on-cash: -1.46%
• DSCR: 0.94
• 1% rule: 0.94%
• Cash to close: $173,320

Investor read

• This is a 2 × 2-bed/1.5-bath units multifamily listed at $619k.
• At list price, monthly cash flow is $-266 ($-3k/yr) — negative. Per door: $-133/mo.
• To cash-flow at today's rent, offer at most $572k (7.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $583k (5.9% below list).
• It's been on market 40 days — a 3% lower offer ($600k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $572k (7.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#717 in NY) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Rocky Point Union Free School District (suburban): math 67% / reading 64% proficiency, ranked #152 of 590 in NY (top 26%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Frank J Carasiti Elementary School (519 students, 32% FRL); Rocky Point Middle School (math 52% / reading 67%, grade B, #161 of 729 statewide, top 24%, 638 students, 36% FRL); Rocky Point High School (math 93% / reading 70%, grade A, #484 of 1,100 statewide, top 44%, 923 students, 32% FRL).
• Watch-outs: property tax is 2.5% of price; flood insurance adds $56/mo; built in 1949 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 128 active listings in the ZIP; 1,366 units permitted in Suffolk County in 2024 (216 in 5+ unit buildings).
• Suffolk County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Climate carrying-cost: major flood risk; major wind risk, 78% chance of damaging wind over 30y; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 2.6% in Rocky Point — 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 40 days. Have you received any prior offers? Is the seller open to a 8% 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 1949 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.