5 Michaels Way · Westhampton Beach, NY 11978

$8,500,000

7 bd · 10.5 ba · 12,156 sqft · Land · 216 Days on market

Built 2026 1.31 ac lot $699/sqft · 26% below area Est $11472k · 26% under

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Why this score? — see what drove the D- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Appreciation +10.0/10.0
• Schools +6.6/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Cash flow +0.0/30.0
• 1% rule +0.0/10.0
• DSCR +0.0/10.0

Listing remarks MLS

Nestled in the picturesque community of Westhampton Beach, this stunning seven-bedroom home combines luxurious living with the charm of coastal life. As you enter, you're greeted by an elegant foyer that leads to expansive, open living spaces filled with natural light. The gourmet kitchen features high-end appliances, a large center island, and custom cabinetry, perfect for entertaining. Adjacent to the kitchen, the spacious dining area flows seamlessly into a welcoming living room with a cozy fireplace and panoramic views of the beautiful yard. Step outside to discover a private oasis, complete with a swimming pool, an outdoor kitchen, and ample seating areas, ideal for summer gatherings or quiet evenings. Each of the seven bedrooms is generously sized, offering plenty of space, with each including a full bathroom. The primary suite is a true retreat, featuring a luxurious en-suite bathroom and two large custom closets. Located just moments from the vibrant town center, you'll have quick access to boutique shops, fine dining, and vibrant local events. Enjoy the best of both worlds with world-class golf courses nearby and pristine beaches just a short trip away, making this home not only a beautiful residence but also a perfect gateway to the ultimate beach lifestyle. Don't miss this rare opportunity to own a slice of paradise in Westhampton Beach!

Key facts

• Private balcony
• Gourmet kitchen
• Private oasis

Tags

• GOURMET KITCHEN
• OUTDOOR KITCHEN
• PRIVATE OASIS
• PANORAMIC VIEWS
• LUXURIOUS EN-SUITE BATHROOM
• PRIVATE BALCONY

What this means for you Summary

Snapshot

• This is a 7-bed/10.5-bath land listed at $8.50M.

Deal economics

• At list price, monthly cash flow is $-39k ($-466k/yr) — negative.
• To cash-flow at today's rent, offer at most $2.88M (66.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.52M (70.4% below list).
• Recommended offer: $2.52M (70.4% below list) — sets the bar for 1% rule.
• Cap rate 0.8% vs local median 9.3% in Westhampton Beach — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

Location & tenants

• Location reads 64/100 on livability (#740 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, schools A; Watch: amenities F, commute F, cost of living 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: 112 active listings in the ZIP; high-income renter base; 1,366 units permitted in Suffolk County in 2024 (216 in 5+ unit buildings).
• At $25,158/mo this rent would consume 241% of the median local household income ($125k/yr) (locally 43% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $909k of equity ($59k loan paydown + $850k appreciation (10.0% local appreciation)).
• 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 ~$1.46M cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 216 days — a 12% lower offer ($7.48M) is reasonable based on typical stale-listing flexibility.
• 8 sale attempts since 11y 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 $1.88M; list at $8.50M implies a 353% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.

Recommended offer $2,515,766 (70.4% below list)

Questions for the listing agent

1. 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?
2. It's been on market 216 days. Have you received any prior offers? Is the seller open to a 70% concession, seller financing, or rate buy-down credit?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are A-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?
6. 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?
7. 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.
8. 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.
9. 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.

Investment metrics

• 1% rule: 0.30% ✗
• Cap rate: 0.81%
• Cash-on-cash: -19.60%
• DSCR: 0.13
• GRM: 28.2

CMA / ARV

• ARV (median comp): $11,471,915
• List price: $8,500,000
• Delta: -25.91%
• Verdict: UNDERPRICED
• Comps: 2 within 1.0 mi

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 10.8%
• Equity multiple: 1.91×
• Total profit: $2,154,242
• Equity at exit: $7,657,473

10-year hold

• IRR: 11.8%
• Equity multiple: 4.48×
• Total profit: $8,291,329
• Equity at exit: $16,513,630

Cash invested: $2,380,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 15 Strongly Tenant-Friendly
• State New York: 15 Strongly Tenant-Friendly · D+10
• County: — inherits STATE
• City: — inherits STATE

NYC rent stabilization (~1M units); 2019 HSTPA strengthened tenant rights; courts deeply backlogged.

Methodology + full state rankings →

ZIP-level market 11978

• Home prices YoY: 2.9%
• Active inventory: 112
• Price-to-rent: 28.2×

Monthly cashflow live

• Estimated rent: $25,158 medium
• Mortgage (P&I): −$44,575
• Tax est. 1.5%: −$10,625 /mo · $127,500/yr
• Insurance: −$3,542
• HOA: −$0
• Vacancy / Maint / Mgmt: −$5,283
• Net cashflow: $-38,867

Break-even live

Break-even rent $74,356

Max offer price $2,875,879

Occupancy floor —

Sensitivity live

Price	-10% $-32,993	-5% $-35,930	+0% $-38,867	+5% $-41,804	+10% $-44,741
Rent	-10% $-40,854	-5% $-39,861	+0% $-38,867	+5% $-37,873	+10% $-36,880
Rate	-1.0pp $-34,586	-0.5pp $-36,705	base $-38,867	+0.5pp $-41,070	+1.0pp $-43,310

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $2,125,000
• Closing costs: $255,000
• Reserves months: —
• Total cash needed: —

Listing history 33 events

1. 2026-06-21
   days on market $8,500,000 Active 216 DOM
2. 2026-06-18
   days on market $8,500,000 Active 213 DOM
3. 2026-06-17
   days on market $8,500,000 Active 212 DOM
4. 2026-06-16
   days on market $8,500,000 Active 211 DOM
5. 2026-06-15
   days on market $8,500,000 Active 210 DOM
6. 2026-06-13
   days on market $8,500,000 Active 208 DOM
7. 2026-06-09
   days on market $8,500,000 Active 204 DOM
8. 2026-06-08
   days on market $8,500,000 Active 203 DOM
9. 2026-06-07
   days on market $8,500,000 Active 202 DOM
10. 2026-06-04
    days on market $8,500,000 Active 199 DOM
11. 2026-06-03
    days on market $8,500,000 Active 198 DOM
12. 2026-06-02
    days on market $8,500,000 Active 197 DOM
13. 2026-06-01
    days on market $8,500,000 Active 196 DOM
14. 2026-05-31
    days on market $8,500,000 Active 195 DOM
15. 2025-11-17
    listed $8,500,000 Active 1370-char remark

    Show marketing remark (1370 chars)

    Nestled in the picturesque community of Westhampton Beach, this stunning seven-bedroom home combines luxurious living with the charm of coastal life. As you enter, you're greeted by an elegant foyer that leads to expansive, open living spaces filled with natural light. The gourmet kitchen features high-end appliances, a large center island, and custom cabinetry, perfect for entertaining. Adjacent to the kitchen, the spacious dining area flows seamlessly into a welcoming living room with a cozy fireplace and panoramic views of the beautiful yard. Step outside to discover a private oasis, complete with a swimming pool, an outdoor kitchen, and ample seating areas, ideal for summer gatherings or quiet evenings. Each of the seven bedrooms is generously sized, offering plenty of space, with each including a full bathroom. The primary suite is a true retreat, featuring a luxurious en-suite bathroom and two large custom closets. Located just moments from the vibrant town center, you'll have quick access to boutique shops, fine dining, and vibrant local events. Enjoy the best of both worlds with world-class golf courses nearby and pristine beaches just a short trip away, making this home not only a beautiful residence but also a perfect gateway to the ultimate beach lifestyle. Don't miss this rare opportunity to own a slice of paradise in Westhampton Beach!

16. 2025-01-16
    historical
17. 2024-03-24
    listed $7,650,000 Active
18. 2023-08-11
    soldstatus $1,875,000 Closed
19. 2023-07-06
    status Pending
20. 2023-06-09
    listed $1,950,000 Active
21. 2020-08-12
    historical
22. 2020-08-12
    soldstatus $1,300,000 Closed
23. 2019-12-03
    price $1,550,000
24. 2019-07-17
    listed $1,695,000 New
25. 2018-02-24
    historical
26. 2018-02-24
    historical
27. 2017-04-07
    listed $3,500,000 New
28. 2016-09-13
    price $1,150,000
29. 2016-05-24
    listed $1,500,000 New
30. 2016-03-04
    historical
31. 2015-05-09
    listed $1,800,000
32. 2015-05-04
    historical
33. 2015-04-20
    listed $1,800,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 4/10 Moderate 7 d/yr ≥90°F today · 19 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 80% chance of damaging wind over 30 yrs
• 🫁 Air quality 4/10 Moderate 4 unhealthy d/yr today · 5 by 30 yrs out

Taxation est. · year 1

• Rental income: $301,892
• − Mortgage interest: −$476,132
• − Property taxes: −$127,500
• − Insurance: −$42,500
• − Repairs & maintenance: −$24,151
• − Management: −$24,151
• − Depreciation: −$247,273
• Taxable loss: −$639,816
• Est. tax savings @ 24.0%: +$153,556
• After-tax cash flow: $-312,849/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Westhampton Beach Union Free School District
• NCES district ID: 3631020
• Math proficiency: 72% ▼ -5.00%
• Reading proficiency: 75% ▲ 3.00%
• Median HH income: $88,137
• Composite: 65.91/100
• National rank: #444
• State rank: #81 of 590 in NY

Livability — Westhampton Beach

• Score: 64/100
• State rank: #740
• US rank: #14093

Category grades

Amenities F Commute F Cost of living F Crime A+ Employment A+ Housing C Health & safety F User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Westhampton Beach, NY
• County: Suffolk County · 679,920 people
• City population: 4,705
• Metro: New York-Newark-Jersey City, NY-NJ-PA
• Population (ZIP): 4,705
• Household income: $125,179
• Rent vs Own: 11.8% rent · 88.2% own
• Severe rent burden: 43.0

Population outlook (Suffolk County) Hauer SSP2

• Today (2025): 1,505,262 people
• By 2030: 1,498,318 · -0.5%
• By 2040: 1,471,101 · -2.3%
• By 2050: 1,424,848 · -5.3%
• By 2075: 1,337,157 · -11.2%
• By 2100: 1,217,720 · -19.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (72%)
• Race & ethnicity: White 72% Two or more races 14% Hispanic / Latino 11% Black 6% Asian 2%
• Hispanic origin (detail): Puerto Rican 1%
• Common ancestry: Romanian 7% Scotch-Irish 2% Italian 2%
• Foreign-born: 14% · Canada, Jamaica, China
• Languages at home: 84% English-only · Spanish 10% Other Indo-European 2% Russian/Polish/Slavic 1%

Political lean MEDSL · Suffolk

• 2024 margin: Lean R (+10.0) · D 45.0% · R 55.0%
• 2008→2024 swing: -16.0pp toward R · 2008: 6.0pp · 2024: -10.0pp
• All cycles: 2024: R+10.0 2020: R+0.0 2016: R+8.2 2012: D+2.9 2008: D+6.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 13.02%
• Current HPI: 460.3964
• Rent YoY: —
• Metro: New York-Newark-Jersey City, NY-NJ-PA
• State GDP YoY: ▲ 2.60%
• F500 in state: 92

Industry mix (Fortune 500 HQ in NY)

Industry	F500 HQs	Revenue
▸Financial Services	10	$950B
▸Consumer Goods	9	$162B
▸Insurance	4	$225B
▸Telecommunications	2	$144B
▸Pharmaceuticals	2	$112B
▸Media / Entertainment	2	$69B

Price history

+372.2% since first listed

19 events — show timeline

• 2025-11-17 Listed $8,500,000 OneKey® MLS as Distributed by MLS Grid
• 2025-01-16 Listing Removed — OneKey® MLS as Distributed by MLS Grid
• 2024-03-24 Listed $7,650,000 OneKey® MLS as Distributed by MLS Grid
• 2023-08-11 Sold (MLS) $1,875,000 OneKey® MLS as Distributed by MLS Grid
• 2023-07-06 Pending — OneKey® MLS as Distributed by MLS Grid
• 2023-06-09 Listed $1,950,000 OneKey® MLS as Distributed by MLS Grid
• 2020-08-12 Listing Removed — OneKey® MLS as Distributed by MLS Grid
• 2020-08-12 Sold (MLS) $1,300,000 OneKey® MLS as Distributed by MLS Grid
• 2019-12-03 Price Changed $1,550,000 OneKey® MLS as Distributed by MLS Grid
• 2019-07-17 Listed $1,695,000 OneKey® MLS as Distributed by MLS Grid
• 2018-02-24 Listing Removed — OneKey® MLS as Distributed by MLS Grid
• 2018-02-24 Listing Removed — OneKey® MLS as Distributed by MLS Grid
• 2017-04-07 Listed $3,500,000 OneKey® MLS as Distributed by MLS Grid
• 2016-09-13 Price Changed $1,150,000 OneKey® MLS as Distributed by MLS Grid
• 2016-05-24 Listed $1,500,000 OneKey® MLS as Distributed by MLS Grid
• 2016-03-04 Listing Removed — OneKey® MLS as Distributed by MLS Grid
• 2015-05-09 Listed $1,800,000 OneKey® MLS as Distributed by MLS Grid
• 2015-05-04 Listing Removed — OneKey® MLS as Distributed by MLS Grid
• 2015-04-20 Listed $1,800,000 OneKey® MLS as Distributed by MLS Grid