1 Royce Ave · Middletown, NY 10940

$460,000

3 bd · 2.0 ba · 1,748 sqft · MultiFamily public records · 75 Days on market

Built 1920 4,636 sqft lot Est $615k · 25% under

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Why this score? — see what drove the C- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Cash flow +14.4/30.0
• Rent growth +4.6/5.0
• DSCR +4.4/10.0
• Schools +4.2/10.0
• Livability +4.1/5.0
• 1% rule +3.8/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 2 units. confirmed

Listing remarks MLS

Excellent investment opportunity in the heart of Middletown! This well-maintained, fully occupied two-family residence offers immediate cash flow with a total monthly income of $3,500. The first-floor unit features a comfortable 1-bedroom, 1-bathroom layout currently rented for $1,600, while the second-floor unit offers a spacious 2-bedroom, 1-bathroom configuration rented for $1,900. Strategically designed for low-maintenance ownership, the property boasts separate meters for gas and electric, ensuring tenants pay their own utilities, along with separate private entrances for each unit. A standout feature is the oversized, shared 4-car driveway providing ample off-street parking for all occupants. Situated on a desirable corner lot close to local amenities, schools, and commuter routes, this turn-key property owned by Musadiq Associates LLC is a solid addition to any portfolio. Offered at $480,000, this is a rare find in today's market.

Key facts

• Immediate cash flow
• Private entrances
• Separate meters

Tags

• INVESTMENT OPPORTUNITY
• FULLY OCCUPIED RESIDENCE
• IMMEDIATE CASH FLOW
• SEPARATE METERS
• PRIVATE ENTRANCES
• OVERSIZED SHARED DRIVEWAY

What this means for you Summary

Snapshot

• This is a 1×1bd/1ba + 1×2bd/1ba units multifamily listed at $460k.

Deal economics

• At list price, monthly cash flow is $95 ($1k/yr) — positive. Per door: $47/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $404k (12.2% below list).
• Recommended offer: $404k (12.2% below list) — sets the bar for 1% rule.
• Cap rate 6.5% vs local median 3.3% in Middletown — 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.

Location & tenants

• Location reads 82/100 on livability (#79 in NY, #1,219 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, housing A+, health & safety A+; Watch: commute C-, schools D+.
• Middletown City School District (suburban): math 41% / reading 55% proficiency, ranked #411 of 590 in NY (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+8.2%/yr); 273 active listings in the ZIP; 21 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,746 units permitted in Orange County in 2024 (1,265 in 5+ unit buildings).
• At $4,038/mo this rent would consume 56% of the median local household income ($87k/yr) (locally 1846% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.

Negotiation context

• It's been on market 75 days — a 6% lower offer ($432k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $355k; 30% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $403,800 (12.2% below list)

Questions for the listing agent

1. It's been on market 75 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
8. 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.
9. 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.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.88% ✗
• Cap rate: 6.54%
• Cash-on-cash: 0.88%
• DSCR: 1.04
• GRM: 9.5

CMA / ARV

• ARV (median comp): $614,622
• List price: $460,000
• Delta: -25.16%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 3 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1 Royce Ave	0.00mi	3/2.0	1,748 (0%)	24mo	$355,000	$203	80
125 Linden Ave	0.33mi	4/2.0 (+1)	1,760 (+1%)	22mo	$325,000	$185	61
31 Beattie Ave	0.75mi	4/2.0 (+1)	1,668 (-5%)	6mo	$385,000	$231	47

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 8.0% rent growth · sell at horizon

5-year hold

• IRR: -9.6%
• Equity multiple: 0.63×
• Total profit: $-47,155
• Equity at exit: $68,587

10-year hold

• IRR: 5.5%
• Equity multiple: 1.50×
• Total profit: $63,876
• Equity at exit: $39,772

Cash invested: $128,800 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 15 Strongly Tenant-Friendly
• State New York: 15 Strongly Tenant-Friendly · D+10
• County: — inherits STATE
• City: — inherits STATE

NYC rent stabilization (~1M units); 2019 HSTPA strengthened tenant rights; courts deeply backlogged.

Methodology + full state rankings →

ZIP-level market 10940

• Home prices YoY: -18.7%
• Rents YoY: 8.2%
• Active inventory: 273
• Price-to-rent: 19.7×

Monthly cashflow live

• Estimated rent: $4,038 high
• Mortgage (P&I): −$2,412
• Tax from tax record: −$491 /mo · $5,896/yr
• Insurance: −$192
• HOA: −$0
• Vacancy / Maint / Mgmt: −$848
• Net cashflow: $95

Break-even live

Break-even rent $3,918

Max offer price $460,000

Occupancy floor 93%

Sensitivity live

Price	-10% $355	-5% $225	+0% $95	+5% $-35	+10% $-166
Rent	-10% $-224	-5% $-65	+0% $95	+5% $254	+10% $414
Rate	-1.0pp $326	-0.5pp $212	base $95	+0.5pp $-24	+1.0pp $-146

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
1× unit	1	1	$1,947
1× unit	2	1	$2,090
Total (2 units)			$4,038

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $115,000
• Closing costs: $13,800
• Reserves months: —
• Total cash needed: —

Rent comps 21 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
56 Wisner Ave Middletown, NY	3.0	1.0	1144	$2,500	$2.19	24d	1	0.10mi
186 Highland Ave Unit 1 Middletown, NY	3.0	2.0	2160	$2,800	$1.30	44d	1	0.10mi
184 Highland Ave Middletown, NY	4.0	2.0	1486	$3,500	$2.36	24d	1	0.11mi
14 Smith St Middletown, NY	3.0	2.0	1852	$3,600	$1.94	14d	1	0.52mi
1 Dewitt St Middletown, NY	3.0	1.0	1127	$2,100	$1.86	44d	1	0.73mi
63 Broad St Middletown, NY	3.0	1.0	1088	$2,700	$2.48	24d	1	0.75mi
31 Liberty St Middletown, NY	2.0	1.0	1090	$2,000	$1.83	14d	1	0.77mi
39 Crescent Pl Middletown, NY	3.0	1.0	1278	$2,500	$1.96	24d	1	0.85mi
30 Knapp Ave Middletown, NY	2.0	1.0	1532	$1,800	$1.17	44d	1	0.86mi
8 Roberts St Unit 2-A Middletown, NY	2.0	1.0	2132	$2,000	$0.94	24d	1	0.90mi
132 Prospect Ave Middletown, NY	3.0	1.0	1240	$2,300	$1.85	44d	1	0.92mi
118 W Main St Unit 1 Middletown, NY	3.0	1.0	1158	$2,350	$2.03	22d	1	0.92mi
28 North St #1 Middletown, NY	2.0	2.0	1200	$2,000	$1.67	44d	1	0.94mi
2 E Main St #5 Middletown, NY	3.0	1.0	1200	$1,850	$1.54	14d	1	1.01mi
7 Mulberry St Middletown, NY	4.0	1.5	1696	$2,800	$1.65	45d	1	1.05mi
26 Mill St Unit 2 Middletown, NY	3.0	2.0	1300	$2,600	$2.00	44d	1	1.07mi
26 Mill St Middletown, NY	3.0	2.0	1300	$2,600	$2.00	24d	1	1.07mi
225 Monhagen Ave Middletown, NY	3.0	1.0	1466	$2,700	$1.84	14d	1	1.21mi
23 Wawayanda Ave Middletown, NY	3.0	2.0	1072	$2,150	$2.01	44d	1	1.25mi
151 Tall Oaks Dr Middletown, NY	1.0–3.0	1.0	920	$1,607	$1.75	14d	1	1.32mi
90 Washington St Unit 92 Middletown, NY	2.0	1.0	1600	$2,500	$1.56	24d	1	1.35mi

Listing history 20 events

1. 2026-06-15
   days on market $460,000 Active 75 DOM
2. 2026-06-14
   days on market $460,000 Active 73 DOM
3. 2026-06-13
   days on market $460,000 Active 72 DOM
4. 2026-06-10
   days on market $460,000 Active 70 DOM
5. 2026-06-09
   days on market $460,000 Active 69 DOM
6. 2026-06-08
   days on market $460,000 Active 68 DOM
7. 2026-06-07
   days on market $460,000 Active 67 DOM
8. 2026-06-05
   days on market $460,000 Active 64 DOM
9. 2026-06-03
   days on market $460,000 Active 63 DOM
10. 2026-06-02
    days on market $460,000 Active 62 DOM
11. 2026-06-01
    days on market $460,000 Active 61 DOM
12. 2026-05-31
    days on market $460,000 Active 60 DOM
13. 2026-05-30
    days on market $460,000 Active 59 DOM
14. 2026-04-21
    price $460,000 951-char remark

    Show marketing remark (951 chars)

    Excellent investment opportunity in the heart of Middletown! This well-maintained, fully occupied two-family residence offers immediate cash flow with a total monthly income of $3,500. The first-floor unit features a comfortable 1-bedroom, 1-bathroom layout currently rented for $1,600, while the second-floor unit offers a spacious 2-bedroom, 1-bathroom configuration rented for $1,900. Strategically designed for low-maintenance ownership, the property boasts separate meters for gas and electric, ensuring tenants pay their own utilities, along with separate private entrances for each unit. A standout feature is the oversized, shared 4-car driveway providing ample off-street parking for all occupants. Situated on a desirable corner lot close to local amenities, schools, and commuter routes, this turn-key property owned by Musadiq Associates LLC is a solid addition to any portfolio. Offered at $480,000, this is a rare find in today's market.

15. 2026-03-31
    listed $480,000 Active 951-char remark

    Show marketing remark (951 chars)

    Excellent investment opportunity in the heart of Middletown! This well-maintained, fully occupied two-family residence offers immediate cash flow with a total monthly income of $3,500. The first-floor unit features a comfortable 1-bedroom, 1-bathroom layout currently rented for $1,600, while the second-floor unit offers a spacious 2-bedroom, 1-bathroom configuration rented for $1,900. Strategically designed for low-maintenance ownership, the property boasts separate meters for gas and electric, ensuring tenants pay their own utilities, along with separate private entrances for each unit. A standout feature is the oversized, shared 4-car driveway providing ample off-street parking for all occupants. Situated on a desirable corner lot close to local amenities, schools, and commuter routes, this turn-key property owned by Musadiq Associates LLC is a solid addition to any portfolio. Offered at $480,000, this is a rare find in today's market.

16. 2024-07-09
    soldstatus $355,000
17. 2024-06-24
    soldstatus $355,000 Closed 764-char remark

    Show marketing remark (764 chars)

    Your dream home awaits in Middletown, NY! This charming corner-lot property not only offers a great NYC commute but is also currently income-producing with both units rented. Imagine the possibilities – maintain it as a fantastic investment with dual rental income, or seize the chance to restore its original splendor by converting it back to a single-family home. The first-floor unit boasts 1 bedroom and a spacious bonus room with 1 bathroom, while the second floor features 2 bedrooms and 1 full bath. And let's not forget the small but cozy yard – perfect for enjoying the outdoors! Don't miss out on the opportunity to make this Victorian gem yours. Schedule your showings today and step into the charm of a 2-family home with endless potential!

18. 2024-05-01
    status Pending 764-char remark

    Show marketing remark (764 chars)

    Your dream home awaits in Middletown, NY! This charming corner-lot property not only offers a great NYC commute but is also currently income-producing with both units rented. Imagine the possibilities – maintain it as a fantastic investment with dual rental income, or seize the chance to restore its original splendor by converting it back to a single-family home. The first-floor unit boasts 1 bedroom and a spacious bonus room with 1 bathroom, while the second floor features 2 bedrooms and 1 full bath. And let's not forget the small but cozy yard – perfect for enjoying the outdoors! Don't miss out on the opportunity to make this Victorian gem yours. Schedule your showings today and step into the charm of a 2-family home with endless potential!

19. 2024-01-20
    listed $375,000 Active 764-char remark

    Show marketing remark (764 chars)

    Your dream home awaits in Middletown, NY! This charming corner-lot property not only offers a great NYC commute but is also currently income-producing with both units rented. Imagine the possibilities – maintain it as a fantastic investment with dual rental income, or seize the chance to restore its original splendor by converting it back to a single-family home. The first-floor unit boasts 1 bedroom and a spacious bonus room with 1 bathroom, while the second floor features 2 bedrooms and 1 full bath. And let's not forget the small but cozy yard – perfect for enjoying the outdoors! Don't miss out on the opportunity to make this Victorian gem yours. Schedule your showings today and step into the charm of a 2-family home with endless potential!

20. 2008-01-30
    soldstatus $135,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast NY · Partial reset (capped growth)

• Current annual tax: $5,896 · $491/mo
• Projected year-2 tax: $6,835 · $570/mo
• Expected delta: +$939/yr (+$78/mo · 15.9%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 4/10 Moderate 7 d/yr ≥100°F today · 15 d/yr by 30 yrs out
• 💨 Wind 3/10 Moderate 8% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $48,456
• − Mortgage interest: −$25,767
• − Property taxes: −$5,896
• − Insurance: −$2,300
• − Repairs & maintenance: −$3,876
• − Management: −$3,876
• − Depreciation: −$13,382
• Taxable loss: −$6,642
• Est. tax savings @ 24.0%: +$1,594
• After-tax cash flow: $2,731/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Middletown City School District
• NCES district ID: 3619320
• Math proficiency: 41% ▼ -2.00%
• Reading proficiency: 55% ▲ 19.00%
• Median HH income: $54,612
• Composite: 41.52/100
• National rank: #3453
• State rank: #411 of 590 in NY

Livability — Middletown

• Score: 82/100
• State rank: #79
• US rank: #1219

Category grades

Amenities A+ Commute C- Cost of living C Crime B- Employment C+ Housing A+ Health & safety A+ User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Middletown, NY
• County: Orange County · 267,004 people
• City population: 68,033
• Metro: Poughkeepsie-Newburgh-Middletown, NY
• Population (ZIP): 53,611
• Household income: $87,080
• Rent vs Own: 38.4% rent · 61.6% own
• Severe rent burden: 1846.0

Population outlook (Orange County) Hauer SSP2

• Today (2025): 379,830 people
• By 2030: 378,955 · -0.2%
• By 2040: 375,444 · -1.2%
• By 2050: 369,311 · -2.8%
• By 2075: 354,233 · -6.7%
• By 2100: 318,150 · -16.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Highly diverse neighborhood (Simpson 0.70)
• Race & ethnicity: White 39% Hispanic / Latino 32% Black 20% Two or more races 13% Asian 4% Native American 3%
• Hispanic origin (detail): Mexican 9% Puerto Rican 13% Dominican 3%
• Common ancestry: Romanian 3% Italian 1% Iranian 1%
• Foreign-born: 18% · Canada, China, Jamaica
• Languages at home: 72% English-only · Spanish 21% Other Indo-European 2% Chinese 1%

Political lean MEDSL · Orange

• 2024 margin: Lean R (+8.4) · D 45.8% · R 54.2%
• 2008→2024 swing: -12.5pp toward R · 2008: 4.1pp · 2024: -8.4pp
• All cycles: 2024: R+8.4 2020: R+0.2 2016: R+6.5 2012: D+5.2 2008: D+4.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -71.68%
• Current HPI: 311.5969
• Rent YoY: ▲ 8.23%
• Metro: Poughkeepsie-Newburgh-Middletown, NY
• State GDP YoY: ▲ 2.60%
• F500 in state: 92

Industry mix (Fortune 500 HQ in NY)

Industry	F500 HQs	Revenue
▸Financial Services	10	$950B
▸Consumer Goods	9	$162B
▸Insurance	4	$225B
▸Telecommunications	2	$144B
▸Pharmaceuticals	2	$112B
▸Media / Entertainment	2	$69B

Price history

+240.7% since first listed

7 events — show timeline

• 2026-04-21 Price Changed $460,000 OneKey® MLS as Distributed by MLS Grid
• 2026-03-31 Listed $480,000 OneKey® MLS as Distributed by MLS Grid
• 2024-07-09 Sold (Public Records) $355,000 Public Records
• 2024-06-24 Sold (MLS) $355,000 HVCRMLS
• 2024-05-01 Pending — HVCRMLS
• 2024-01-20 Listed $375,000 HVCRMLS
• 2008-01-30 Sold (Public Records) $135,000 Public Records

Property tax history

+1.6%/yr

Latest (2025): $5,896 · +7.2% YoY. Source: county tax records.