156 Merchants Path

Bridgehampton, NY 11962

$3,195,000D-

3 bd · 2.0 ba · 1,696 sqft · Built 1985 · SingleFamily · Active · 720 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $22,429/mo
• Mortgage (P&I): −$16,755
• Tax + insurance: −$2,031
• HOA: −$0
• Vac / Maint / Mgmt: −$4,710
• Net cashflow: $-1,068/mo
• Annual: $-12,810/yr
• Cap rate: 5.89%
• Cash-on-cash: -1.43%
• DSCR: 0.94
• 1% rule: 0.70%
• Cash to close: $894,600

Investor read

• This is a 3-bed/2.0-bath single-family listed at $3.19M.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative.
• To cash-flow at today's rent, offer at most $3.01M (5.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.24M (29.8% below list).
• It's been on market 720 days — a 12% lower offer ($2.81M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.24M (29.8% below list) — sets the bar for 1% rule.
• In year one you build about $224k of equity ($22k loan paydown + $202k appreciation (6.3% 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.
• Sag Harbor Union Free School District (suburban): math 54% / reading 70% proficiency, ranked #175 of 590 in NY (top 30%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Market conditions: 2 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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 $1.35M; list at $3.19M implies a 137% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$358k 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.

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 720 days. Have you received any prior offers? Is the seller open to a 30% 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 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?
• 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.