5 Hammond Plz

Beacon, NY 12508

$399,000D

3 bd · 1.5 ba · 1,282 sqft · Built 1974 · SingleFamily · Active · 235 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,251/mo
• Mortgage (P&I): −$2,092
• Tax + insurance: −$867
• HOA: −$400
• Vac / Maint / Mgmt: −$683
• Net cashflow: $-791/mo
• Annual: $-9,492/yr
• Cap rate: 3.91%
• Cash-on-cash: -8.50%
• DSCR: 0.62
• 1% rule: 0.81%
• Cash to close: $111,720

Investor read

• This is a 3-bed/1.5-bath single-family listed at $399k.
• At list price, monthly cash flow is $-791 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $259k (35.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $325k (18.5% below list).
• It's been on market 235 days — a 12% lower offer ($351k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $259k (35.0% 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 $12k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#20 in NY, #385 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: cost of living F.
• Beacon City School District (suburban): math 56% / reading 56% proficiency, ranked #304 of 755 in NY (top 40%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: South Avenue School (256 students, 46% FRL); Rombout Middle School (math 64% / reading 70%, grade A-, #101 of 729 statewide, top 15%, 615 students, 51% FRL); Beacon High School (math 90%, 830 students, 47% FRL).
• Market conditions: Rents rising fast (+9.1%/yr); 111 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 56% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 620 units permitted in Dutchess County in 2024 (242 in 5+ unit buildings).
• Dutchess County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 9y ago; this cycle's ask has dropped $51k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $290k; 38% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 3.9% vs local median 2.7% in Beacon — 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 42% of the median local income ($92k/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 235 days. Have you received any prior offers? Is the seller open to a 35% concession, seller financing, or rate buy-down credit?
• Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.