5841-5847 Ontario St

Olcott, NY 14126

$539,900F

12 bd · 6.0 ba · 2,428 sqft · Built 1930 · MultiFamily · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,364/mo
• Mortgage (P&I): −$2,831
• Tax + insurance: −$900
• HOA: −$0
• Vac / Maint / Mgmt: −$706
• Net cashflow: $-1,074/mo
• Annual: $-12,883/yr
• Cap rate: 3.91%
• Cash-on-cash: -8.52%
• DSCR: 0.62
• 1% rule: 0.62%
• Cash to close: $151,172

Investor read

• This is a 4 × 1-bed/1-bath units multifamily listed at $540k.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative. Per door: $-268/mo.
• To cash-flow at today's rent, offer at most $385k (28.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $336k (37.7% below list).
• It's been on market 33 days — a 3% lower offer ($524k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $336k (37.7% below list) — sets the bar for 1% rule.
• In year one you build about $24k of equity ($4k loan paydown + $20k appreciation (3.8% local appreciation)).
• Location reads 66/100 on livability (#653 in NY) — a middle-class / working-renter tenant base. Strengths: housing A+, crime A, cost of living A; Watch: employment C-, amenities F, commute F.
• Newfane Central School District (rural): math 51% / reading 66% proficiency, ranked #257 of 590 in NY (top 44%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Newfane Elementary School (math 57% / reading 72%, grade B, #591 of 2,108 statewide, top 31%, 450 students, 46% FRL); Newfane Middle School (math 22% / reading 52%, grade F, #448 of 729 statewide, top 63%, 343 students, 50% FRL); Newfane Senior High School (math 92% / reading 92%, grade A+, #171 of 1,100 statewide, top 18%, 435 students, 42% FRL) — zoned schools average 46% FRL vs 30% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 9 active listings in the ZIP; 167 units permitted in Niagara County in 2024 (0 in 5+ unit buildings).
• Niagara County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 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.
• By year 2, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.

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 33 days. Have you received any prior offers? Is the seller open to a 38% 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?
• 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?
• 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?