5 Highland Ave

Suffern, NY 10901

$739,222C-

5 bd · 3.0 ba · 3,346 sqft · Built 1955 · MultiFamily · Pending · 87 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,426/mo
• Mortgage (P&I): −$3,877
• Tax + insurance: −$2,020
• HOA: −$0
• Vac / Maint / Mgmt: −$1,559
• Net cashflow: $-30/mo
• Annual: $-355/yr
• Cap rate: 6.34%
• Cash-on-cash: 0.15%
• DSCR: 1.01
• 1% rule: 1.00%
• Cash to close: $206,982

Investor read

• This is a 1×4bd/2.0ba + 1×3bd/2.0ba units multifamily listed at $739k.
• At list price, monthly cash flow is $-30 ($-355/yr) — negative. Per door: $-15/mo.
• To cash-flow at today's rent, offer at most $734k (0.7% below list).
• Meets the 1% rule at list price ($7k rent vs $739k).
• It's been on market 87 days — a 6% lower offer ($695k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $695k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#546 in NY) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Suffern Central School District (suburban): math 53% / reading 59% proficiency, ranked #242 of 590 in NY (top 41%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Richard P Connor Elementary School (math 42% / reading 62%, grade C-, #988 of 2,108 statewide, top 49%, 383 students, 0% FRL); Suffern Middle School (math 30% / reading 56%, grade D-, #370 of 729 statewide, top 51%, 836 students, 38% FRL); Suffern Senior High School (math 96% / reading 95%, grade A+, #76 of 1,100 statewide, top 7%, 1,486 students, 31% FRL).
• Watch-outs: property tax is 2.7% of price; flood insurance adds $56/mo; built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 230 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 429 units permitted in Rockland County in 2024 (231 in 5+ unit buildings).
• Rockland County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 23y ago; this cycle's ask has dropped $50k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $490k; list at $739k implies a 51% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major flood risk; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.3% vs local median 3.2% in Suffern — 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 $7,426/mo this rent would consume 82% of the median local household income ($108k/yr) (locally 828% 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 87 days. Have you received any prior offers? Is the seller open to a 6% 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 1955 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?