50A S Phillips Ave

Remsenburg-Speonk, NY 11960

$1,999,999D-

5 bd · 3.0 ba · 3,934 sqft · Built 2009 · SingleFamily · Pending · 77 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,000/mo
• Mortgage (P&I): −$10,488
• Tax + insurance: −$3,333
• HOA: −$0
• Vac / Maint / Mgmt: −$1,890
• Net cashflow: $-6,712/mo
• Annual: $-80,539/yr
• Cap rate: 2.27%
• Cash-on-cash: -14.38%
• DSCR: 0.36
• 1% rule: 0.45%
• Cash to close: $560,000

Investor read

• This is a 5-bed/3.0-bath single-family listed at $2.00M.
• At list price, monthly cash flow is $-7k ($-81k/yr) — negative.
• To cash-flow at today's rent, offer at most $1.03M (48.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $900k (55.0% below list).
• It's been on market 77 days — a 6% lower offer ($1.88M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $900k (55.0% below list) — sets the bar for 1% rule.
• In year one you build about $170k of equity ($14k loan paydown + $156k appreciation (7.8% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Remsenburg-Speonk Union Free School District (suburban): math 60% / reading 40% proficiency, ranked #389 of 755 in NY (top 52%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Market conditions: 40 active listings in the ZIP; 1 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.
• 2 sale attempts 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.
• By year 2, paydown + projected appreciation supports a ~$272k 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.
• Cap rate 2.3% vs local median 6.1% in Remsenburg-Speonk — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 77 days. Have you received any prior offers? Is the seller open to a 55% 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.
• 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.
• 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.