18 Institute St

Franklin, NY 13775

$150,000B+

6 bd · 3.9 ba · 2,840 sqft · Built 1900 · MultiFamily · Under Contract

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,765/mo
• Mortgage (P&I): −$787
• Tax + insurance: −$291
• HOA: −$0
• Vac / Maint / Mgmt: −$581
• Net cashflow: $1,107/mo
• Annual: $13,283/yr
• Cap rate: 15.15%
• Cash-on-cash: 31.63%
• DSCR: 2.41
• 1% rule: 1.84%
• Cash to close: $42,000

Investor read

• This is a 3 × 2-bed/1.3-bath units multifamily listed at $150k.
• At list price, monthly cash flow is $1k ($13k/yr) — positive. Per door: $369/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $150k).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $8k of equity ($1k loan paydown + $7k appreciation (4.4% local appreciation)).
• Location reads 59/100 on livability (#1,035 in NY) — a working-class tenant base; expect higher turnover. Strengths: housing A+, employment B+, cost of living B+; Watch: health & safety C-, crime D-, amenities F.
• Franklin Central School District (rural): math 35% / reading 40% proficiency, ranked #664 of 755 in NY (top 88%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 23 active listings in the ZIP; 66 units permitted in Delaware County in 2024 (0 in 5+ unit buildings).
• Delaware County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 12y 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 $75k; list at $150k implies a 100% gain — meaningful room to come down on a strong offer.
• At projected returns (4.4% appreciation + 3.0% rent growth), your $42k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• 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 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is D 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?
• 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 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.