2004 Montauk Hwy #2011

Napeague, NY 11930

$539,000A

1 bd · 1.0 ba · 520 sqft · Built 1983 · Condo · Active · 264 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $17,422/mo
• Mortgage (P&I): −$2,827
• Tax + insurance: −$898
• HOA: −$0
• Vac / Maint / Mgmt: −$3,659
• Net cashflow: $10,038/mo
• Annual: $120,458/yr
• Cap rate: 28.64%
• Cash-on-cash: 79.82%
• DSCR: 4.55
• 1% rule: 3.23%
• Cash to close: $150,920

Investor read

• This is a 1-bed/1.0-bath condo listed at $539k. Condition is rated good.
• At list price, monthly cash flow is $10k ($120k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($17k rent vs $539k).
• It's been on market 264 days — a 12% lower offer ($474k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $474k (12.0% below list) — sets the bar for market timing.
• In year one you build about $10k of equity ($4k loan paydown + $7k 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: schools C-, amenities F, commute 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.
• Market conditions: 20 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 (1.2% appreciation + 3.0% rent growth), your $151k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• At $17,422/mo this rent would consume 170% 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 264 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.