39 Halsey Ave

Southampton, NY 11968

$2,300,000B+

6 bd · 2.0 ba · 1,688 sqft · Built 1965 · MultiFamily · Active · 623 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $37,615/mo
• Mortgage (P&I): −$12,061
• Tax + insurance: −$3,833
• HOA: −$0
• Vac / Maint / Mgmt: −$7,899
• Net cashflow: $13,821/mo
• Annual: $165,853/yr
• Cap rate: 13.50%
• Cash-on-cash: 25.75%
• DSCR: 2.15
• 1% rule: 1.64%
• Cash to close: $644,000

Investor read

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $2.30M.
• At list price, monthly cash flow is $14k ($166k/yr) — positive. Per door: $7k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($38k rent vs $2.30M).
• It's been on market 623 days — a 12% lower offer ($2.02M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.02M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $16k of loan paydown is wiped out by about $69k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#472 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+; Watch: commute D+, amenities F, cost of living F.
• Southampton Union Free School District (suburban): math 53% / reading 51% proficiency, ranked #293 of 590 in NY (top 50%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents rising fast (+14.6%/yr); 95 active listings in the ZIP; 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.
• 4 sale attempts since 14y 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 $128k; list at $2.30M implies a 1697% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $644k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 13.5% vs local median 2.8% in Southampton — 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.
• At $37,615/mo this rent would consume 289% of the median local household income ($156k/yr) (locally 274% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 623 days. Have you received any prior offers? Is the seller open to a 12% 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 1965 — 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.
• 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.