250 East St

Rensselaer, NY 12144

$153,000B-

2 bd · 2.0 ba · 3,049 sqft · Built 1882 · MultiFamily · Pending · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,479/mo
• Mortgage (P&I): −$802
• Tax + insurance: −$255
• HOA: −$0
• Vac / Maint / Mgmt: −$731
• Net cashflow: $1,691/mo
• Annual: $20,293/yr
• Cap rate: 19.56%
• Cash-on-cash: 47.37%
• DSCR: 3.11
• 1% rule: 2.27%
• Cash to close: $42,840

Investor read

• This is a 2-bed/2.0-bath multifamily listed at $153k. Condition is rated fair.
• At list price, monthly cash flow is $2k ($20k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $153k).
• It's been on market 20 days — a 2% lower offer ($151k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $151k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#191 in NY, #2,967 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, health & safety A+; Watch: crime D+.
• Rensselaer City School District (suburban): math 28% / reading 34% proficiency, ranked #574 of 590 in NY (top 97%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Van Rensselaer Elementary School (math 15% / reading 36%, grade F, #1,821 of 2,108 statewide, top 86%, 493 students, 70% FRL); Rensselaer Junior/Senior High School (math 42% / reading 22%, grade F, #1,079 of 1,100 statewide, top 98%, 522 students, 66% FRL).
• Watch-outs: built in 1882 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 102 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 405 units permitted in Rensselaer County in 2024 (224 in 5+ unit buildings).
• Rensselaer County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 0.9% rent growth), your $43k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 19.6% vs local median 5.0% in Rensselaer — 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 $3,479/mo this rent would consume 46% of the median local household income ($91k/yr) (locally 541% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1882 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Major: Kitchen cabinets — Old and outdated, need replacement or renovation
• Major: Kitchen countertops — Worn and outdated, need replacement or renovation
• Major: Bathroom fixtures — Old and outdated, need replacement or renovation
• Major: Windows — Old and possibly drafty, need replacement
• Major: Exterior siding — Weathered and possibly damaged, need replacement