26 Krom Rd

Shokan, NY 12461

$599,000C-

3 bd · 1.0 ba · 1,559 sqft · Built 1965 · SingleFamily · Active · 108 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,800/mo
• Mortgage (P&I): −$3,141
• Tax + insurance: −$726
• HOA: −$0
• Vac / Maint / Mgmt: −$1,008
• Net cashflow: $-75/mo
• Annual: $-898/yr
• Cap rate: 6.14%
• Cash-on-cash: -0.54%
• DSCR: 0.98
• 1% rule: 0.80%
• Cash to close: $167,720

Investor read

• This is a 3-bed/1.0-bath single-family listed at $599k.
• At list price, monthly cash flow is $-75 ($-898/yr) — negative.
• To cash-flow at today's rent, offer at most $586k (2.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $480k (19.9% below list).
• It's been on market 108 days — a 9% lower offer ($545k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $480k (19.9% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($4k loan paydown + $10k appreciation (1.7% local appreciation)).
• Location reads 62/100 on livability (#888 in NY) — a middle-class / working-renter tenant base. Strengths: crime A, housing A-; Watch: schools F, amenities F, commute F.
• Onteora Central School District (rural): math 58% / reading 59% proficiency, ranked #288 of 755 in NY (top 38%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 37 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 464 units permitted in Ulster County in 2024 (170 in 5+ unit buildings).
• Ulster County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 6y ago; this cycle's ask has dropped $50k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $505k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (1.7% appreciation + 3.0% rent growth), your $168k cash investment doubles in ~9 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.1% vs local median 1.8% in Shokan — 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.

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 108 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• Built in 1965 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.