68 Summers St

Oyster Bay, NY 11771

$875,000D

3 bd · 2.0 ba · 1,626 sqft · Built 1926 · MultiFamily · Active · 261 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,785/mo
• Mortgage (P&I): −$4,589
• Tax + insurance: −$1,405
• HOA: −$0
• Vac / Maint / Mgmt: −$1,425
• Net cashflow: $-633/mo
• Annual: $-7,600/yr
• Cap rate: 5.50%
• Cash-on-cash: -2.83%
• DSCR: 0.87
• 1% rule: 0.78%
• Cash to close: $245,000

Investor read

• This is a 3-bed/2.0-bath multifamily listed at $875k.
• At list price, monthly cash flow is $-633 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $763k (12.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $678k (22.5% below list).
• It's been on market 261 days — a 12% lower offer ($770k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $678k (22.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $26k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#436 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, health & safety A; Watch: housing D+, commute F, cost of living F.
• Oyster Bay-East Norwich Central School District (suburban): math 68% / reading 67% proficiency, ranked #120 of 590 in NY (top 20%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Vernon School (math 74% / reading 68%, grade A-, #434 of 2,108 statewide, top 21%, 434 students, 20% FRL); Oyster Bay Middle School (217 students, 19% FRL); Oyster Bay High School (math 63% / reading 68%, grade B, #773 of 1,100 statewide, top 70%, 415 students, 23% FRL).
• Watch-outs: flood insurance adds $56/mo; built in 1926 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 72 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 824 units permitted in Nassau County in 2024 (153 in 5+ unit buildings).
• Nassau County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 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.
• Climate carrying-cost: major flood risk; major wind risk, 72% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 261 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• Built in 1926 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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)?
• 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?
• 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?