64 Eastport Dr

Sound Beach, NY 11789

$699,000D

8 bd · 4.0 ba · 2,710 sqft · Built 1968 · MultiFamily · Pending · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,400/mo
• Mortgage (P&I): −$3,666
• Tax + insurance: −$1,556
• HOA: −$0
• Vac / Maint / Mgmt: −$1,344
• Net cashflow: $-166/mo
• Annual: $-1,987/yr
• Cap rate: 6.01%
• Cash-on-cash: -1.02%
• DSCR: 0.95
• 1% rule: 0.92%
• Cash to close: $195,720

Investor read

• This is a 2 × 4-bed/2.0-bath units multifamily listed at $699k.
• At list price, monthly cash flow is $-166 ($-2k/yr) — negative. Per door: $-83/mo.
• To cash-flow at today's rent, offer at most $670k (4.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $640k (8.4% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $640k (8.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#458 in NY) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime B; Watch: amenities F, commute F, cost of living F.
• Rocky Point Union Free School District (suburban): math 67% / reading 64% proficiency, ranked #152 of 590 in NY (top 26%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Rocky Point Middle School (math 52% / reading 67%, grade B, #161 of 729 statewide, top 24%, 638 students, 36% FRL); Rocky Point High School (math 93% / reading 70%, grade A, #484 of 1,100 statewide, top 44%, 923 students, 32% FRL).
• Market conditions: 70 active listings in the ZIP; 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.
• Current owner paid $388k; list at $699k implies a 80% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 77% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 3.8% in Sound Beach — 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.

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?
• 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 1968 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.