223 East 110 St

New York, NY 10029

$2,650,000D+

9 bd · 3.0 ba · 2,898 sqft · Built 1996 · MultiFamily · Active · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $18,368/mo
• Mortgage (P&I): −$13,897
• Tax + insurance: −$2,115
• HOA: −$0
• Vac / Maint / Mgmt: −$3,857
• Net cashflow: $-1,501/mo
• Annual: $-18,013/yr
• Cap rate: 5.61%
• Cash-on-cash: -2.43%
• DSCR: 0.89
• 1% rule: 0.69%
• Cash to close: $742,000

Investor read

• This is a 3 × 3-bed/1.0-bath units multifamily listed at $2.65M.
• At list price, monthly cash flow is $-2k ($-18k/yr) — negative. Per door: $-500/mo.
• To cash-flow at today's rent, offer at most $2.38M (10.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.84M (30.7% below list).
• It's been on market 64 days — a 6% lower offer ($2.49M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.84M (30.7% below list) — sets the bar for 1% rule.
• In year one you build about $186k of equity ($18k loan paydown + $167k appreciation (6.3% local appreciation)).
• Location reads 75/100 on livability (#268 in NY, #4,188 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A; Watch: crime F, cost of living F.
• Market conditions: Rents rising fast (+4.5%/yr); 96 active listings in the ZIP; lower-income renter base — watch delinquency; 4,467 units permitted in New York County in 2024 (4,463 in 5+ unit buildings).
• New York County population projected at +21% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 sale attempts since 11y 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 $2.05M; 29% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$297k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.6% vs local median 2.6% in New York — 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 $18,368/mo this rent would consume 570% of the median local household income ($39k/yr) (locally 8791% 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 64 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• 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?
• 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 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?
• Crime grade is F 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?