32 Cooper St

Southampton, NY 11968

$3,250,000F

3 bd · 2.0 ba · 2,237 sqft · Built 1920 · Other · Pending · 113 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $18,574/mo
• Mortgage (P&I): −$17,043
• Tax + insurance: −$5,417
• HOA: −$0
• Vac / Maint / Mgmt: −$3,901
• Net cashflow: $-7,787/mo
• Annual: $-93,439/yr
• Cap rate: 3.42%
• Cash-on-cash: -10.27%
• DSCR: 0.54
• 1% rule: 0.57%
• Cash to close: $910,000

Investor read

• This is a 3-bed/2.0-bath other listed at $3.25M.
• At list price, monthly cash flow is $-8k ($-93k/yr) — negative.
• To cash-flow at today's rent, offer at most $2.12M (34.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.86M (42.8% below list).
• It's been on market 113 days — a 9% lower offer ($2.96M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.86M (42.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $22k of loan paydown is wiped out by about $98k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#472 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+; Watch: commute D+, amenities F, cost of living F.
• Southampton Union Free School District (suburban): math 53% / reading 51% proficiency, ranked #293 of 590 in NY (top 50%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+14.6%/yr); 95 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 64% of comp listings sitting > 30 days — soft ceiling on asking rent; 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 since 2y ago 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 $1.80M; list at $3.25M implies a 81% gain — meaningful room to come down on a strong offer.
• 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 3.4% vs local median 2.8% in Southampton — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• At $18,574/mo this rent would consume 143% of the median local household income ($156k/yr) (locally 274% of renters already pay >50% of income on rent) — 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 113 days. Have you received any prior offers? Is the seller open to a 43% concession, seller financing, or rate buy-down credit?
• Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.