97-99 Park Ave

Canandaigua, NY 14424

$384,900B-

8 bd · 3.0 ba · 2,880 sqft · Built 1905 · MultiFamily · Pending · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,499/mo
• Mortgage (P&I): −$2,018
• Tax + insurance: −$642
• HOA: −$0
• Vac / Maint / Mgmt: −$945
• Net cashflow: $894/mo
• Annual: $10,731/yr
• Cap rate: 9.08%
• Cash-on-cash: 9.96%
• DSCR: 1.44
• 1% rule: 1.17%
• Cash to close: $107,772

Investor read

• This is a 2 × 4-bed/1.5-bath units multifamily listed at $385k. Condition is rated fair.
• At list price, monthly cash flow is $894 ($11k/yr) — positive. Per door: $447/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $385k).
• It's been on market 28 days — a 2% lower offer ($379k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $379k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#243 in NY, #3,822 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, cost of living B; Watch: employment C-, amenities F, health & safety D-.
• Canandaigua City School District (suburban): math 50% / reading 59% proficiency, ranked #305 of 590 in NY (top 52%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Canandaigua Primary-Elementary School (math 37% / reading 49%, grade F, #1,354 of 2,108 statewide, top 64%, 1,475 students, 41% FRL); Canandaigua Middle School (math 38% / reading 55%, grade D+, #330 of 729 statewide, top 46%, 676 students, 0% FRL); Canandaigua Academy (math 100% / reading 92%, grade A+, #71 of 1,100 statewide, top 7%, 1,082 students, 36% FRL) — zoned schools at 26% FRL track the district average.
• Watch-outs: built in 1905 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+8.5%/yr); 223 active listings in the ZIP; solid renter incomes; 284 units permitted in Ontario County in 2024 (69 in 5+ unit buildings).
• Ontario County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 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.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $108k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 9.1% vs local median 3.4% in Canandaigua — 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 $4,499/mo this rent would consume 68% of the median local household income ($80k/yr) (locally 737% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1905 — 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.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: kitchen — No photos of kitchen
• Major: bathrooms — No photos of bathrooms
• Major: interior walls/paint — No photos of interior walls/paint
• Major: HVAC/mechanicals — No photos of HVAC/mechanicals