60 Webb Ave

North Patchogue, NY 11772

$425,000D+

3 bd · 2.0 ba · 1,956 sqft · Built 1982 · SingleFamily · Pending · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,820/mo
• Mortgage (P&I): −$2,229
• Tax + insurance: −$1,072
• HOA: −$0
• Vac / Maint / Mgmt: −$802
• Net cashflow: $-283/mo
• Annual: $-3,395/yr
• Cap rate: 5.49%
• Cash-on-cash: -2.85%
• DSCR: 0.87
• 1% rule: 0.90%
• Cash to close: $119,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $425k.
• At list price, monthly cash flow is $-283 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $375k (11.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $382k (10.1% below list).
• It's been on market 18 days — a 2% lower offer ($419k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $375k (11.8% 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 63/100 on livability (#817 in NY) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Patchogue-Medford Union Free School District (suburban): math 83% / reading 69% proficiency, ranked #73 of 590 in NY (top 12%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Canaan Elementary School (math 30% / reading 75%, grade C-, #984 of 2,108 statewide, top 47%, 518 students, 36% FRL); Saxton Middle School (math 70%, 495 students, 49% FRL); Patchogue-Medford High School (math 89% / reading 67%, grade A-, #577 of 1,100 statewide, top 52%, 2,443 students, 53% FRL).
• Watch-outs: property tax is 2.5% of price.
• Market conditions: Rents rising fast (+5.1%/yr); 216 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 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 $135k; list at $425k implies a 215% 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.
• This rent runs 44% of the median local income ($105k/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?
• 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.
• 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.