125 Wood Rd

Centereach, NY 11720

$449,000D

3 bd · 1.0 ba · 1,200 sqft · Built 1935 · SingleFamily · Active · 51 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,837/mo
• Mortgage (P&I): −$2,355
• Tax + insurance: −$1,081
• HOA: −$0
• Vac / Maint / Mgmt: −$806
• Net cashflow: $-405/mo
• Annual: $-4,856/yr
• Cap rate: 5.21%
• Cash-on-cash: -3.86%
• DSCR: 0.83
• 1% rule: 0.85%
• Cash to close: $125,720

Investor read

• This is a 3-bed/1.0-bath single-family listed at $449k.
• At list price, monthly cash flow is $-405 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $378k (15.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $384k (14.5% below list).
• It's been on market 51 days — a 3% lower offer ($436k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $378k (15.9% below list) — sets the bar for cash-flow.
• 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 72/100 on livability (#362 in NY) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, health & safety A+; Watch: amenities F, commute F, cost of living F.
• Middle Country Central School District (suburban): math 60% / reading 56% proficiency, ranked #217 of 590 in NY (top 37%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Oxhead Road School (math 37% / reading 42%, grade F, #1,444 of 2,108 statewide, top 71%, 371 students, 38% FRL); Dawnwood Middle School (math 37% / reading 46%, grade F, #394 of 729 statewide, top 55%, 1,074 students, 37% FRL); Centereach High School (math 84% / reading 77%, grade A, #506 of 1,100 statewide, top 46%, 1,475 students, 35% FRL) — zoned schools average 37% FRL vs 22% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1935 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 148 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• Current owner paid $296k; list at $449k implies a 51% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.2% vs local median 3.8% in Centereach — 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 34% of the median local income ($135k/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?
• It's been on market 51 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Built in 1935 — 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.