25 Cedar Ave

North Sea, NY 11968

$825,000B+

1 bd · 2.0 ba · 1,137 sqft · Built 1976 · SingleFamily · Coming Soon · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,118/mo
• Mortgage (P&I): −$4,326
• Tax + insurance: −$492
• HOA: −$0
• Vac / Maint / Mgmt: −$2,545
• Net cashflow: $4,755/mo
• Annual: $57,057/yr
• Cap rate: 13.21%
• Cash-on-cash: 24.70%
• DSCR: 2.10
• 1% rule: 1.47%
• Cash to close: $231,000

Investor read

• This is a 1-bed/2.0-bath single-family listed at $825k. Condition is rated fair.
• At list price, monthly cash flow is $5k ($57k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $825k).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $25k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#1,063 in NY) — a working-class tenant base; expect higher turnover. Strengths: crime A+, employment A+; Watch: housing C-, amenities F, commute 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.
• Zoned schools: Southampton Elementary School (math 42% / reading 57%, grade D, #1,085 of 2,108 statewide, top 56%, 376 students, 51% FRL); Southampton Intermediate School (math 30% / reading 47%, grade F, #437 of 729 statewide, top 60%, 363 students, 44% FRL); Southampton High School (math 98%, 595 students, 48% FRL) — zoned schools average 48% FRL vs 30% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+14.6%/yr); 138 active listings in the ZIP; 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 (-3.0% appreciation + 8.0% rent growth), your $231k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 13.2% vs local median 6.1% in North Sea — 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 $12,118/mo this rent would consume 93% of the median local household income ($156k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1976 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Signs of wear and discoloration suggest significant damage and potential water infiltration.
• Major: siding — The siding is weathered and peeling, indicating a need for replacement or repainting.
• Major: flooring — The flooring shows significant wear and tear, requiring replacement or repair.
• Major: interior walls — The walls show signs of wear and discoloration, indicating a need for repainting or repair.
• Major: landscaping — The landscaping is overgrown and not maintained, detracting from the curb appeal and potentially requiring trimming and planting.
• Major: HVAC unit — The HVAC unit appears old and may need maintenance or replacement to ensure proper functioning and energy efficiency.