501 W 123rd St Unit 5C

New York, NY 10027

$680,000F

2 bd · 1.0 ba · 970 sqft · Built — · Condo · Active · 182 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,370/mo
• Mortgage (P&I): −$3,566
• Tax + insurance: −$1,133
• HOA: −$2,250
• Vac / Maint / Mgmt: −$918
• Net cashflow: $-3,497/mo
• Annual: $-41,965/yr
• Cap rate: 0.12%
• Cash-on-cash: -22.04%
• DSCR: 0.02
• 1% rule: 0.64%
• Cash to close: $190,400

Investor read

• This is a 2-bed/1.0-bath condo listed at $680k.
• At list price, monthly cash flow is $-3k ($-42k/yr) — negative.
• To cash-flow at today's rent, offer at most $500k (26.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $437k (35.7% below list).
• It's been on market 182 days — a 12% lower offer ($598k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $437k (35.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.3%/yr); year-one equity from $5k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• 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.
• Watch-outs: HOA is 51% of rent.
• Market conditions: Rents rising (+2.7%/yr); 175 active listings in the ZIP; 28 comparable units currently listed for rent nearby; rentals leasing fast (median 9d on market — plan ~1-2 weeks tenant-placement turnaround); 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.
• Climate carrying-cost: 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 0.1% vs local median 2.6% in New York — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $4,370/mo this rent would consume 88% of the median local household income ($60k/yr) (locally 5635% 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 182 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?