1926 Montauk Hwy

Napeague, NY 11930

$1,350,000B

3 bd · 2.0 ba · 1,650 sqft · Built 1969 · SingleFamily · Pending · 42 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $26,993/mo
• Mortgage (P&I): −$7,080
• Tax + insurance: −$1,380
• HOA: −$0
• Vac / Maint / Mgmt: −$5,668
• Net cashflow: $12,864/mo
• Annual: $154,372/yr
• Cap rate: 18.14%
• Cash-on-cash: 42.30%
• DSCR: 2.88
• 1% rule: 2.00%
• Cash to close: $378,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $1.35M.
• At list price, monthly cash flow is $13k ($154k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($27k rent vs $1.35M).
• It's been on market 42 days — a 3% lower offer ($1.31M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.31M (3.0% below list) — sets the bar for market timing.
• In year one you build about $26k of equity ($9k loan paydown + $17k appreciation (1.2% local appreciation)).
• Location reads 46/100 on livability (#1,184 in NY) — a working-class tenant base; expect higher turnover. Strengths: housing A+, crime A; Watch: amenities F, commute F, employment F.
• Amagansett Union Free School District (town): math 70% / reading 80% proficiency, ranked #106 of 755 in NY (top 14%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Amagansett School (math 74% / reading 74%, grade A, #314 of 2,108 statewide, top 17%, 125 students, 0% FRL) — zoned schools average 0% FRL vs 24% district-wide (24 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: flood insurance adds $460/mo.
• Market conditions: 20 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.
• At projected returns (1.2% appreciation + 3.0% rent growth), your $378k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$94k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $26,993/mo this rent would consume 263% of the median local household income ($123k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 42 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.