2 East Ave

Coram, NY 11727

$593,250D-

4 bd · 3.0 ba · 2,847 sqft · Built 2002 · SingleFamily · Active · 50 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,757/mo
• Mortgage (P&I): −$3,111
• Tax + insurance: −$1,683
• HOA: −$0
• Vac / Maint / Mgmt: −$999
• Net cashflow: $-1,036/mo
• Annual: $-12,432/yr
• Cap rate: 4.20%
• Cash-on-cash: -7.48%
• DSCR: 0.67
• 1% rule: 0.80%
• Cash to close: $166,110

Investor read

• This is a 4-bed/3.0-bath single-family listed at $593k.
• At list price, monthly cash flow is $-1k ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $410k (30.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $476k (19.8% below list).
• It's been on market 50 days — a 3% lower offer ($575k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $410k (30.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#646 in NY) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, health & safety B; Watch: amenities F, commute F, cost of living F.
• Middle Country Central School District (suburban): math 60% / reading 56% proficiency, ranked #217 of 590 in NY (top 37%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: New Lane Memorial Elementary School (math 27% / reading 42%, grade F, #1,577 of 2,108 statewide, top 77%, 789 students, 44% FRL); Selden Middle School (math 42% / reading 52%, grade D+, #315 of 729 statewide, top 45%, 1,058 students, 37% FRL); Newfield High School (math 77% / reading 77%, grade A-, #583 of 1,100 statewide, top 56%, 1,559 students, 35% FRL) — zoned schools average 39% FRL vs 22% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.9% of price.
• Market conditions: Rents rising fast (+4.7%/yr); 232 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 2d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,366 units permitted in Suffolk County in 2024 (216 in 5+ unit buildings).
• Suffolk County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts 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; list at $593k implies a 67% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 72% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $4,757/mo this rent would consume 55% of the median local household income ($103k/yr) (locally 994% 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 50 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• 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 B-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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.