218 Partition St

Saugerties, NY 12477

$579,000B

9 bd · 12.0 ba · 3,366 sqft · Built 1930 · MultiFamily · Pending · 69 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,930/mo
• Mortgage (P&I): −$3,036
• Tax + insurance: −$938
• HOA: −$0
• Vac / Maint / Mgmt: −$1,665
• Net cashflow: $2,291/mo
• Annual: $27,490/yr
• Cap rate: 11.04%
• Cash-on-cash: 16.96%
• DSCR: 1.75
• 1% rule: 1.37%
• Cash to close: $162,120

Investor read

• This is a 3 × 3-bed/4.0-bath units multifamily listed at $579k.
• At list price, monthly cash flow is $2k ($27k/yr) — positive. Per door: $764/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $579k).
• It's been on market 69 days — a 6% lower offer ($544k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $544k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#916 in NY) — a middle-class / working-renter tenant base. Strengths: crime A-, housing B+; Watch: schools C-, cost of living C-, amenities F.
• Saugerties Central School District (suburban): math 38% / reading 57% proficiency, ranked #419 of 590 in NY (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 173 active listings in the ZIP; solid renter incomes; 464 units permitted in Ulster County in 2024 (170 in 5+ unit buildings).
• Ulster County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $60k; list at $579k implies a 865% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $162k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 11.0% vs local median 2.6% in Saugerties — 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 $7,930/mo this rent would consume 118% of the median local household income ($81k/yr) (locally 725% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 69 days. Have you received any prior offers? Is the seller open to a 6% 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 1930 — 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.
• 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.