27 Jagger Ln

Westhampton, NY 11977

$2,400,000D

2 bd · 2.0 ba · 1,908 sqft · Built 1992 · SingleFamily · Active · 346 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $15,125/mo
• Mortgage (P&I): −$12,586
• Tax + insurance: −$1,456
• HOA: −$0
• Vac / Maint / Mgmt: −$3,176
• Net cashflow: $-2,093/mo
• Annual: $-25,118/yr
• Cap rate: 5.25%
• Cash-on-cash: -3.74%
• DSCR: 0.83
• 1% rule: 0.63%
• Cash to close: $672,000

Investor read

• This is a 2-bed/2.0-bath single-family listed at $2.40M.
• At list price, monthly cash flow is $-2k ($-25k/yr) — negative.
• To cash-flow at today's rent, offer at most $2.03M (15.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.51M (37.0% below list).
• It's been on market 346 days — a 12% lower offer ($2.11M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.51M (37.0% below list) — sets the bar for 1% rule.
• In year one you build about $228k of equity ($17k loan paydown + $212k appreciation (8.8% local appreciation)).
• Location reads 60/100 on livability (#969 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+; Watch: housing C-, schools D+, amenities F.
• Westhampton Beach Union Free School District (suburban): math 72% / reading 75% proficiency, ranked #81 of 590 in NY (top 14%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: 63 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 1,366 units permitted in Suffolk County in 2024 (216 in 5+ unit buildings).
• Suffolk County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• By year 2, paydown + projected appreciation supports a ~$366k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.2% vs local median 9.1% in Westhampton — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $15,125/mo this rent would consume 120% of the median local household income ($151k/yr) — 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 346 days. Have you received any prior offers? Is the seller open to a 37% concession, seller financing, or rate buy-down credit?
• 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?
• 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.