36 Houston St

Florida, NY 10921

$569,000D

6 bd · 5.0 ba · 2,797 sqft · Built 1963 · MultiFamily · Pending · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,292/mo
• Mortgage (P&I): −$2,984
• Tax + insurance: −$1,414
• HOA: −$0
• Vac / Maint / Mgmt: −$1,111
• Net cashflow: $-217/mo
• Annual: $-2,610/yr
• Cap rate: 5.83%
• Cash-on-cash: -1.64%
• DSCR: 0.93
• 1% rule: 0.93%
• Cash to close: $159,320

Investor read

• This is a 2 × 3-bed/2.5-bath units multifamily listed at $569k.
• At list price, monthly cash flow is $-217 ($-3k/yr) — negative. Per door: $-109/mo.
• To cash-flow at today's rent, offer at most $531k (6.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $529k (7.0% below list).
• It's been on market 76 days — a 6% lower offer ($535k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $529k (7.0% 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 $17k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#304 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Florida Union Free School District (town): math 63% / reading 66% proficiency, ranked #162 of 590 in NY (top 28%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 16% free/reduced lunch — higher-income household profile.
• Market conditions: 39 active listings in the ZIP; 1,746 units permitted in Orange County in 2024 (1,265 in 5+ unit buildings).
• 8 sale attempts since 13y ago; this cycle's ask has dropped $30k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $84k; list at $569k implies a 581% gain — meaningful room to come down on a strong offer.
• Cap rate 5.8% vs local median 2.1% in Florida — 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?
• It's been on market 76 days. Have you received any prior offers? Is the seller open to a 7% 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?
• Built in 1963 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?