198 King Rd E

South Hill, NY 14850

$529,800D

6 bd · 4.0 ba · 2,800 sqft · Built 1987 · MultiFamily · Active · 29 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,529/mo
• Mortgage (P&I): −$2,778
• Tax + insurance: −$1,016
• HOA: −$0
• Vac / Maint / Mgmt: −$951
• Net cashflow: $-217/mo
• Annual: $-2,602/yr
• Cap rate: 5.80%
• Cash-on-cash: -1.75%
• DSCR: 0.92
• 1% rule: 0.85%
• Cash to close: $148,344

Investor read

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $530k.
• At list price, monthly cash flow is $-217 ($-3k/yr) — negative. Per door: $-108/mo.
• To cash-flow at today's rent, offer at most $491k (7.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $453k (14.5% below list).
• It's been on market 29 days — a 2% lower offer ($522k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $453k (14.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#471 in NY) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: crime D+, cost of living D+, health & safety D.
• Ithaca City School District (urban): math 57% / reading 71% proficiency, ranked #195 of 590 in NY (top 33%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: South Hill School (math 57% / reading 72%, grade B, #591 of 2,108 statewide, top 31%, 380 students, 0% FRL) — zoned schools average 0% FRL vs 30% district-wide (30 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising fast (+5.2%/yr); 327 active listings in the ZIP; 382 units permitted in Tompkins County in 2024 (208 in 5+ unit buildings).
• Tompkins County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 24y 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 $192k; list at $530k implies a 177% gain — meaningful room to come down on a strong offer.
• At $4,529/mo this rent would consume 76% of the median local household income ($71k/yr) (locally 5169% 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?
• 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?
• 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?
• 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.