881 39th St

New York, NY 11232

$1,299,000B+

66 bd · 39.0 ba · 3,921 sqft · Built 1933 · MultiFamily · Pending · 117 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $16,621/mo
• Mortgage (P&I): −$6,812
• Tax + insurance: −$1,719
• HOA: −$0
• Vac / Maint / Mgmt: −$3,490
• Net cashflow: $4,599/mo
• Annual: $55,191/yr
• Cap rate: 10.54%
• Cash-on-cash: 15.17%
• DSCR: 1.68
• 1% rule: 1.28%
• Cash to close: $363,720

Investor read

• This is a 5×2bd/1.0ba + 1×1bd/1.0ba units multifamily listed at $1.30M.
• At list price, monthly cash flow is $5k ($55k/yr) — positive. Per door: $767/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($17k rent vs $1.30M).
• It's been on market 117 days — a 9% lower offer ($1.18M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.18M (9.0% below list) — sets the bar for market timing.
• In year one you build about $117k of equity ($9k loan paydown + $108k appreciation (8.3% local appreciation)).
• Location reads 75/100 on livability (#268 in NY, #4,188 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A; Watch: crime F, cost of living F.
• Zoned schools: Ps 169 Sunset Park (math 44% / reading 24%, grade F, #1,577 of 2,108 statewide, top 77%, 934 students, 92% FRL); Ms 51 William Alexander (math 67% / reading 92%, grade A+, #32 of 729 statewide, top 5%, 1,026 students, 61% FRL); Midwood High School (math 94% / reading 96%, grade A+, #83 of 1,100 statewide, top 8%, 4,062 students, 73% FRL).
• Watch-outs: built in 1933 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+6.3%/yr); 87 active listings in the ZIP; solid renter incomes; 10,063 units permitted in Kings County in 2024 (9,789 in 5+ unit buildings).
• Kings County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $290k; list at $1.30M implies a 348% gain — meaningful room to come down on a strong offer.
• At projected returns (8.3% appreciation + 6.3% rent growth), your $364k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$188k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 10.5% vs local median 2.6% in New York — 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 $16,621/mo this rent would consume 219% of the median local household income ($91k/yr) (locally 1713% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 117 days. Have you received any prior offers? Is the seller open to a 9% 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 1933 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?