86 Northwest Path

Bridgehampton, NY 11962

$2,790,000B

5 bd · 4.5 ba · 3,115 sqft · Built 2003 · SingleFamily · Active · 70 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $40,593/mo
• Mortgage (P&I): −$14,631
• Tax + insurance: −$4,706
• HOA: −$0
• Vac / Maint / Mgmt: −$8,525
• Net cashflow: $12,732/mo
• Annual: $152,782/yr
• Cap rate: 11.79%
• Cash-on-cash: 19.64%
• DSCR: 1.87
• 1% rule: 1.45%
• Cash to close: $781,200

Investor read

• This is a 5-bed/4.5-bath single-family listed at $2.79M.
• At list price, monthly cash flow is $13k ($153k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($41k rent vs $2.79M).
• It's been on market 70 days — a 6% lower offer ($2.62M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.62M (6.0% below list) — sets the bar for market timing.
• In year one you build about $196k of equity ($19k loan paydown + $176k appreciation (6.3% 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.
• Sag Harbor Union Free School District (suburban): math 54% / reading 70% proficiency, ranked #175 of 590 in NY (top 30%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: 2 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• 8 sale attempts since 8y ago; this cycle's ask is 92931% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (6.3% appreciation + 3.0% rent growth), your $781k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$313k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; severe wind risk, 80% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 70 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• 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.