78 Auburn St

Lindenhurst, NY 11757

$429,000D+

3 bd · 2.0 ba · 1,281 sqft · Built 1967 · SingleFamily · Active · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,899/mo
• Mortgage (P&I): −$2,250
• Tax + insurance: −$1,004
• HOA: −$0
• Vac / Maint / Mgmt: −$819
• Net cashflow: $-173/mo
• Annual: $-2,081/yr
• Cap rate: 5.81%
• Cash-on-cash: -1.73%
• DSCR: 0.92
• 1% rule: 0.91%
• Cash to close: $120,120

Investor read

• This is a 3-bed/2.0-bath single-family listed at $429k.
• At list price, monthly cash flow is $-173 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $398k (7.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $390k (9.1% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $390k (9.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#260 in NY, #4,112 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A+, housing A+; Watch: amenities D+, cost of living F, health & safety F.
• Lindenhurst Union Free School District (suburban): math 64% / reading 72% proficiency, ranked #139 of 590 in NY (top 24%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Daniel Street School (math 57% / reading 72%, grade B, #591 of 2,108 statewide, top 31%, 512 students, 36% FRL); Lindenhurst Middle School (math 45% / reading 62%, grade C+, #228 of 729 statewide, top 31%, 1,284 students, 44% FRL); Lindenhurst Senior High School (math 86% / reading 95%, grade A+, #231 of 1,100 statewide, top 21%, 1,897 students, 41% FRL) — zoned schools average 40% FRL vs 21% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 205 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals leasing fast (median 0d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 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 wind risk, 62% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 3.0% in Lindenhurst — 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.
• This rent runs 37% of the median local income ($128k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• Built in 1967 — 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.