242 Munro Blvd

Valley Stream, NY 11581

$1,150,000D

6 bd · 2.5 ba · 2,377 sqft · Built 1966 · MultiFamily · Pending · 112 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,632/mo
• Mortgage (P&I): −$6,031
• Tax + insurance: −$1,746
• HOA: −$0
• Vac / Maint / Mgmt: −$1,603
• Net cashflow: $-1,748/mo
• Annual: $-20,972/yr
• Cap rate: 4.47%
• Cash-on-cash: -6.51%
• DSCR: 0.71
• 1% rule: 0.66%
• Cash to close: $322,000

Investor read

• This is a 2 × 3-bed/1.5-bath units multifamily listed at $1.15M.
• At list price, monthly cash flow is $-2k ($-21k/yr) — negative. Per door: $-874/mo.
• To cash-flow at today's rent, offer at most $841k (26.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $763k (33.6% below list).
• It's been on market 112 days — a 9% lower offer ($1.05M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $763k (33.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $34k of value loss. Plan a longer hold.
• Location reads 87/100 on livability (#13 in NY, #301 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living F.
• Hewlett-Woodmere Union Free School District (suburban): math 72% / reading 79% proficiency, ranked #59 of 590 in NY (top 10%) — strong family-tenant draw, lease renewals of 3-5y typical; only 12% free/reduced lunch — higher-income household profile.
• Market conditions: 100 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 8d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 824 units permitted in Nassau County in 2024 (153 in 5+ unit buildings).
• Nassau County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 8y ago; this cycle's ask is 6% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $710k; list at $1.15M implies a 62% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 70% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.5% vs local median 3.3% in Valley Stream — 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 $7,632/mo this rent would consume 64% of the median local household income ($142k/yr) (locally 346% 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?
• It's been on market 112 days. Have you received any prior offers? Is the seller open to a 34% 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 1966 — 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 A-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?