19 Reo Ave

Cheektowaga, NY 14211

$155,900C-

3 bd · 1.0 ba · 1,276 sqft · Built 1906 · SingleFamily · Pending · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,504/mo
• Mortgage (P&I): −$818
• Tax + insurance: −$443
• HOA: −$0
• Vac / Maint / Mgmt: −$316
• Net cashflow: $-72/mo
• Annual: $-867/yr
• Cap rate: 5.74%
• Cash-on-cash: -1.99%
• DSCR: 0.91
• 1% rule: 0.96%
• Cash to close: $43,652

Investor read

• This is a 3-bed/1.0-bath single-family listed at $156k.
• At list price, monthly cash flow is $-72 ($-867/yr) — negative.
• To cash-flow at today's rent, offer at most $143k (8.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $150k (3.5% below list).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $143k (8.2% below list) — sets the bar for cash-flow.
• In year one you build about $4k of equity ($1k loan paydown + $3k appreciation (2.0% local appreciation)).
• Location reads 84/100 on livability (#54 in NY, #811 nationally) — a professional / high-income tenant draw. Strengths: commute A+, housing A+, health & safety A+; Watch: crime C-.
• Cheektowaga Central School District (urban): math 30% / reading 37% proficiency, ranked #564 of 590 in NY (top 96%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Union East Elementary School (math 19% / reading 36%, grade F, #1,777 of 2,108 statewide, top 84%, 895 students, 65% FRL); Cheektowaga Middle School (math 10% / reading 36%, grade F, #646 of 729 statewide, top 89%, 627 students, 68% FRL); Cheektowaga High School (math 92% / reading 70%, grade A, #495 of 1,100 statewide, top 46%, 705 students, 68% FRL) — zoned schools average 67% FRL vs 51% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.9% of price; built in 1906 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 173 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); lower-income renter base — watch delinquency; 1,244 units permitted in Erie County in 2024 (563 in 5+ unit buildings).
• At projected returns (2.0% appreciation + 3.0% rent growth), your $44k cash investment doubles in ~9 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.7% vs local median 3.8% in Cheektowaga — 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 $1,504/mo this rent would consume 50% of the median local household income ($36k/yr) (locally 1804% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 1906 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.