9866 State Rd

North Boston, NY 14025

$230,000D

5 bd · 2.0 ba · 2,735 sqft · Built 1850 · MultiFamily · Active · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,431/mo
• Mortgage (P&I): −$1,206
• Tax + insurance: −$621
• HOA: −$0
• Vac / Maint / Mgmt: −$301
• Net cashflow: $-697/mo
• Annual: $-8,360/yr
• Cap rate: 2.66%
• Cash-on-cash: -12.98%
• DSCR: 0.42
• 1% rule: 0.62%
• Cash to close: $64,400

Investor read

• This is a 5-bed/2.0-bath multifamily listed at $230k.
• At list price, monthly cash flow is $-697 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $126k (45.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $143k (37.8% below list).
• It's been on market 27 days — a 2% lower offer ($227k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $126k (45.2% below list) — sets the bar for cash-flow.
• In year one you build about $25k of equity ($2k loan paydown + $23k appreciation (10.0% local appreciation)).
• Location reads 60/100 on livability (#988 in NY) — a middle-class / working-renter tenant base. Strengths: crime A, housing A, cost of living B; Watch: schools C-, amenities F, commute F.
• Springville-Griffith Institute Central School District (town): math 47% / reading 52% proficiency, ranked #385 of 590 in NY (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: property tax is 2.7% of price; built in 1850 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 17 active listings in the ZIP; 1,244 units permitted in Erie County in 2024 (563 in 5+ unit buildings).
• Current owner paid $197k; 17% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 2.7% vs local median 2.0% in North Boston — 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.

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?
• Built in 1850 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.
• 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.