88 W Peenpack Trl

Sparrow Bush, NY 12780

$234,000C-

3 bd · 1.0 ba · 780 sqft · Built 1972 · Manufactured · Active · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,948/mo
• Mortgage (P&I): −$1,227
• Tax + insurance: −$386
• HOA: −$0
• Vac / Maint / Mgmt: −$409
• Net cashflow: $-74/mo
• Annual: $-884/yr
• Cap rate: 5.92%
• Cash-on-cash: -1.35%
• DSCR: 0.94
• 1% rule: 0.83%
• Cash to close: $65,520

Investor read

• This is a 3-bed/1.0-bath manufactured listed at $234k.
• At list price, monthly cash flow is $-74 ($-884/yr) — negative.
• To cash-flow at today's rent, offer at most $221k (5.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $195k (16.7% below list).
• It's been on market 41 days — a 3% lower offer ($227k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $195k (16.7% below list) — sets the bar for 1% rule.
• In year one you build about $13k of equity ($2k loan paydown + $11k appreciation (4.9% local appreciation)).
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Port Jervis City School District (rural): math 43% / reading 50% proficiency, ranked #451 of 590 in NY (top 76%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Anna S Kuhl Elementary School (math 35% / reading 49%, grade F, #1,361 of 2,108 statewide, top 67%, 755 students, 63% FRL); Port Jervis Middle School (math 22% / reading 35%, grade F, #569 of 729 statewide, top 78%, 379 students, 59% FRL); Port Jervis Senior High School (math 87% / reading 95%, grade A+, #203 of 1,100 statewide, top 20%, 750 students, 55% FRL).
• Market conditions: 28 active listings in the ZIP; 1,746 units permitted in Orange County in 2024 (1,265 in 5+ unit buildings).
• Current owner paid $14k; list at $234k implies a 1596% gain — meaningful room to come down on a strong offer.
• At projected returns (4.9% appreciation + 3.0% rent growth), your $66k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 2.5% in Sparrow Bush — 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 41 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• Built in 1972 — 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.
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.