241 Covert St

New Cassel, NY 11590

$879,999C-

6 bd · 2.0 ba · 1,832 sqft · Built 1908 · MultiFamily · Active · 52 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,564/mo
• Mortgage (P&I): −$4,615
• Tax + insurance: −$1,468
• HOA: −$0
• Vac / Maint / Mgmt: −$1,798
• Net cashflow: $683/mo
• Annual: $8,191/yr
• Cap rate: 7.22%
• Cash-on-cash: 3.32%
• DSCR: 1.15
• 1% rule: 0.97%
• Cash to close: $246,400

Investor read

• This is a 2 × 3-bed/1.0-bath units multifamily listed at $880k.
• At list price, monthly cash flow is $683 ($8k/yr) — positive. Per door: $341/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $856k (2.7% below list).
• It's been on market 52 days — a 3% lower offer ($854k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $854k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $26k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#311 in NY) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A+, housing A+; Watch: amenities D, cost of living F, health & safety D-.
• Westbury Union Free School District (suburban): math 28% / reading 43% proficiency, ranked #531 of 590 in NY (top 90%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 75% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Park Avenue School (math 14% / reading 35%, grade F, #1,846 of 2,108 statewide, top 91%, 556 students, 61% FRL); Westbury Middle School (math 5% / reading 32%, grade F, #689 of 729 statewide, top 95%, 1,053 students, 61% FRL); Westbury High School (math 79% / reading 75%, grade A-, #583 of 1,100 statewide, top 56%, 1,541 students, 59% FRL).
• Watch-outs: built in 1908 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 183 active listings in the ZIP; high-income renter base; 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.
• Current owner paid $235k; list at $880k implies a 274% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 41% 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 7.2% vs local median 4.4% in New Cassel — 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 $8,564/mo this rent would consume 67% of the median local household income ($153k/yr) (locally 730% 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 52 days. Have you received any prior offers? Is the seller open to a 3% 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 1908 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.