1593 Deerfield Rd

Water Mill, NY 11976

$14,995,000F

8 bd · 11.0 ba · 9,000 sqft · Built 2025 · Land · Active · 317 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $58,571/mo
• Mortgage (P&I): −$78,635
• Tax + insurance: −$24,992
• HOA: −$0
• Vac / Maint / Mgmt: −$12,300
• Net cashflow: $-57,356/mo
• Annual: $-688,272/yr
• Cap rate: 1.70%
• Cash-on-cash: -16.39%
• DSCR: 0.27
• 1% rule: 0.39%
• Cash to close: $4,198,600

Investor read

• This is a 8-bed/11.0-bath land listed at $14.99M.
• At list price, monthly cash flow is $-57k ($-688k/yr) — negative.
• To cash-flow at today's rent, offer at most $6.70M (55.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $5.86M (60.9% below list).
• It's been on market 317 days — a 12% lower offer ($13.20M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5.86M (60.9% below list) — sets the bar for 1% rule.
• In year one you build about $1.40M of equity ($104k loan paydown + $1.29M appreciation (8.6% local appreciation)).
• Location reads 71/100 on livability (#410 in NY) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, commute A-; Watch: amenities F, cost of living F, housing 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.
• Market conditions: Rents rising fast (+30.1%/yr); 52 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.
• 2 sale attempts; this cycle's ask is 355% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $2.67M; list at $14.99M implies a 461% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$2.24M cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• 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 1.7% vs local median 10.6% in Water Mill — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $58,571/mo this rent would consume 390% of the median local household income ($180k/yr) — 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 317 days. Have you received any prior offers? Is the seller open to a 61% concession, seller financing, or rate buy-down credit?
• 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.
• 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.