Hudson Valley 10BR estate at $1.175M producing $171K

[Frank Schiavone]

Hey all, looking for a sanity check from the STR investor community on a Hudson Valley deal I'm representing as the listing agent.

The property:

• Brewster, NY (Putnam County), 70 minutes from Manhattan
• 8,251 sqft, 10 bedrooms, 6 baths, 21 rooms total
• 5 wooded acres, complete privacy
• Built 1928 by Ilonka Karasz (designer of 200 New Yorker covers, MoMA co-founder); featured in the August 1928 House Beautiful
• Pool, fitness center, wine cellar, billiard room, two-car garage
• Fully restored but still can use some updating

The numbers:

• Current ask: $1,175,000 (just dropped $100K from original list)
• Trailing 12-month Airbnb gross: ~$171,000
• Professional co-host on the property is confident that $50–60K in targeted cap-ex (specifics on request) pushes revenue into the mid-$200Ks
• That's a 20%+ projected cap rate on gross, in a tier-1 NYC weekender market

Where it could go sideways:

• Putnam County STR regs are evolving, currently permissible but worth verification with local counsel for any buyer
• Operating cost ratio on a property this large is meaningful (cleaning, landscaping, pool, utilities for an 8K sqft house)
• 10BR means group dynamics, bachelor/bachelorette weekends, family reunions, corporate offsites, which is great revenue but more wear and tear

Why I'm posting: The cap rate math looks rare to me, especially with the income already proven and a clear cap-ex story to unlock the next leg. I'm wondering if the STR-investor community here sees something I'm not. If the numbers stack up the way they look, this should move fast at this price.

Happy to DM the full financials, co-host's cap-ex breakdown, and listing details to anyone seriously evaluating it. Curious to hear what folks think.

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[Bryce Stephens]

It's awesome that you listed the downsides to this deal. The only thing I'd push back on is that the 20% on gross that you mentioned wouldn't be considered the cap rate. That comes off NOI and this house is an expense MONSTER.

This house made $171K before any bills are paid, and if you divide that by the asking price, that puts you at about 14.6%. You have cleaning costs, landscaping, property taxes, etc. and all of that included eats 50-60% of that money before mortgage, leaving you with about $70-85K. So you're looking at $77K / $1.175M = about 6.5% which is the real cap rate. Pretty decent, but not rare.

I'm curious, what did it actually cost to run everything for the last 12 months, including taxes?