64 Fairview Ave

Montauk, NY 11954

$1,675,000A-

4 bd · 2.5 ba · 2,689 sqft · Built 1980 · SingleFamily · Active · 115 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $21,336/mo
• Mortgage (P&I): −$8,784
• Tax + insurance: −$1,483
• HOA: −$0
• Vac / Maint / Mgmt: −$4,481
• Net cashflow: $6,589/mo
• Annual: $79,063/yr
• Cap rate: 11.01%
• Cash-on-cash: 16.86%
• DSCR: 1.75
• 1% rule: 1.27%
• Cash to close: $469,000

Investor read

• This is a 4-bed/2.5-bath single-family listed at $1.68M.
• At list price, monthly cash flow is $7k ($79k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($21k rent vs $1.68M).
• It's been on market 115 days — a 9% lower offer ($1.52M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.52M (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.8%/yr); year-one equity from $12k of loan paydown is wiped out by about $30k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#474 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, health & safety A; Watch: housing C-, amenities F, commute F.
• Montauk Union Free School District (town): math 50% / reading 60% proficiency, ranked #311 of 755 in NY (top 41%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 39 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 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.
• Current owner paid $430k; list at $1.68M implies a 290% gain — meaningful room to come down on a strong offer.
• At projected returns (-1.8% appreciation + 3.0% rent growth), your $469k cash investment doubles in ~6 years — after that, you're playing with house money.
• 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 11.0% vs local median 7.9% in Montauk — 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.
• At $21,336/mo this rent would consume 179% of the median local household income ($143k/yr) (locally 20% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 115 days. Have you received any prior offers? Is the seller open to a 9% 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.
• 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.