2 Strongs Ln

Bridgehampton, NY 11976

$3,749,500B

3 bd · 3.0 ba · 2,800 sqft · Built 1920 · SingleFamily · Active · 193 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $44,462/mo
• Mortgage (P&I): −$19,663
• Tax + insurance: −$6,249
• HOA: −$0
• Vac / Maint / Mgmt: −$9,337
• Net cashflow: $9,213/mo
• Annual: $110,560/yr
• Cap rate: 9.24%
• Cash-on-cash: 10.53%
• DSCR: 1.47
• 1% rule: 1.19%
• Cash to close: $1,049,860

Investor read

• This is a 3-bed/3.0-bath single-family listed at $3.75M. Condition is rated good.
• At list price, monthly cash flow is $9k ($111k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($44k rent vs $3.75M).
• It's been on market 193 days — a 12% lower offer ($3.30M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.30M (12.0% below list) — sets the bar for market timing.
• In year one you build about $350k of equity ($26k loan paydown + $324k appreciation (8.6% local appreciation)).
• Location reads 62/100 on livability (#874 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, schools B; Watch: amenities F, commute 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.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+30.1%/yr); 52 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.
• 3 sale attempts; this cycle's ask has dropped $250k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (8.6% appreciation + 8.0% rent growth), your $1.05M cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$560k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• At $44,462/mo this rent would consume 296% of the median local household income ($180k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 193 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1920 — 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 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.