875 Hanover St

Yorktown Heights, NY 10598

$990,000C+

4 bd · 2.0 ba · 2,872 sqft · Built 2000 · SingleFamily · Active · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,500/mo
• Mortgage (P&I): −$5,192
• Tax + insurance: −$2,635
• HOA: −$0
• Vac / Maint / Mgmt: −$2,625
• Net cashflow: $2,048/mo
• Annual: $24,579/yr
• Cap rate: 8.78%
• Cash-on-cash: 8.87%
• DSCR: 1.39
• 1% rule: 1.26%
• Cash to close: $277,200

Investor read

• This is a 4-bed/2.0-bath single-family listed at $990k.
• At list price, monthly cash flow is $2k ($25k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $990k).
• It's been on market 17 days — a 2% lower offer ($975k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $975k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $30k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#343 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, health & safety A+, employment A-; Watch: amenities F, commute F, cost of living F.
• Yorktown Central School District (rural): math 67% / reading 73% proficiency, ranked #83 of 590 in NY (top 14%) — strong family-tenant draw, lease renewals of 3-5y typical; only 5% free/reduced lunch — higher-income household profile.
• Zoned schools: Brookside School (math 77% / reading 92%, grade A+, #93 of 2,108 statewide, top 6%, 519 students, 10% FRL); Mildred E Strang Middle School (math 52% / reading 73%, grade B+, #133 of 729 statewide, top 18%, 794 students, 14% FRL); Yorktown High School (math 100% / reading 84%, grade A+, #171 of 1,100 statewide, top 18%, 1,104 students, 14% FRL).
• Watch-outs: property tax is 2.7% of price.
• Market conditions: 161 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 954 units permitted in Westchester County in 2024 (649 in 5+ unit buildings).
• Westchester County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 27y ago; this cycle's ask is 33% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $745k; 33% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.8% vs local median 1.7% in Yorktown Heights — 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

• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.