3 & 7 Rudolph St

Lackawanna, NY 14218

$800,000D

20 bd · 0.0 ba · 3,403 sqft · Built 1947 · MultiFamily · Pending · 63 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,688/mo
• Mortgage (P&I): −$4,195
• Tax + insurance: −$620
• HOA: −$0
• Vac / Maint / Mgmt: −$1,404
• Net cashflow: $468/mo
• Annual: $5,620/yr
• Cap rate: 7.00%
• Cash-on-cash: 2.51%
• DSCR: 1.11
• 1% rule: 0.84%
• Cash to close: $224,000

Investor read

• This is a 5 × 4-bed/1.0-bath units multifamily listed at $800k.
• At list price, monthly cash flow is $468 ($6k/yr) — positive. Per door: $94/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $669k (16.4% below list).
• It's been on market 63 days — a 6% lower offer ($752k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $669k (16.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#254 in NY, #4,026 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: crime C-, employment D+, amenities F.
• Lackawanna City School District (suburban): math 19% / reading 29% proficiency, ranked #588 of 590 in NY (top 100%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Martin Road Elementary School (math 12% / reading 29%, grade F, #1,944 of 2,108 statewide, top 92%, 560 students, 86% FRL); Lackawanna Middle School (math 5% / reading 27%, grade F, #702 of 729 statewide, top 96%, 407 students, 80% FRL); Lackawanna High School (math 72%, 560 students, 71% FRL).
• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 93 active listings in the ZIP; 1,244 units permitted in Erie County in 2024 (563 in 5+ unit buildings).
• 2 sale attempts since 9y 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 $150k; list at $800k implies a 433% gain — meaningful room to come down on a strong offer.
• Cap rate 7.0% vs local median 5.4% in Lackawanna — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

Questions for listing agent

• It's been on market 63 days. Have you received any prior offers? Is the seller open to a 16% 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 1947 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?