54 Sawasett Ave

Bridgehampton, NY 11932

$5,995,000D+

3 bd · 1.0 ba · 1,224 sqft · Built 2025 · SingleFamily · Pending · 374 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $41,650/mo
• Mortgage (P&I): −$31,438
• Tax + insurance: −$9,992
• HOA: −$0
• Vac / Maint / Mgmt: −$8,747
• Net cashflow: $-8,526/mo
• Annual: $-102,318/yr
• Cap rate: 4.59%
• Cash-on-cash: -6.10%
• DSCR: 0.73
• 1% rule: 0.69%
• Cash to close: $1,678,600

Investor read

• This is a 3-bed/1.0-bath single-family listed at $6.00M.
• At list price, monthly cash flow is $-9k ($-102k/yr) — negative.
• To cash-flow at today's rent, offer at most $4.76M (20.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $4.17M (30.5% below list).
• It's been on market 374 days — a 12% lower offer ($5.28M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $4.17M (30.5% below list) — sets the bar for 1% rule.
• In year one you build about $641k of equity ($41k loan paydown + $600k appreciation (10.0% 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.
• Bridgehampton Union Free School District (rural): math 50% / reading 40% proficiency, ranked #511 of 755 in NY (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 24 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 4 sale attempts since 2y ago; this cycle's ask has dropped $400k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $1.80M; list at $6.00M implies a 233% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$1.03M cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• At $41,650/mo this rent would consume 288% of the median local household income ($174k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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 374 days. Have you received any prior offers? Is the seller open to a 31% 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.