700 Edge Of Woods Rd

Water Mill, NY 11976

$2,995,000B+

3 bd · 2.0 ba · 1,536 sqft · Built 1979 · SingleFamily · Active · 595 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $45,008/mo
• Mortgage (P&I): −$15,706
• Tax + insurance: −$4,992
• HOA: −$0
• Vac / Maint / Mgmt: −$9,452
• Net cashflow: $14,859/mo
• Annual: $178,305/yr
• Cap rate: 12.25%
• Cash-on-cash: 21.26%
• DSCR: 1.95
• 1% rule: 1.50%
• Cash to close: $838,600

Investor read

• This is a 3-bed/2.0-bath single-family listed at $3.00M.
• At list price, monthly cash flow is $15k ($178k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($45k rent vs $3.00M).
• It's been on market 595 days — a 12% lower offer ($2.64M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.64M (12.0% below list) — sets the bar for market timing.
• In year one you build about $279k of equity ($21k loan paydown + $258k 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; 1 comparable units currently listed for rent nearby; 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; this cycle's ask is 20% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $1.40M; list at $3.00M implies a 114% gain — meaningful room to come down on a strong offer.
• At projected returns (8.6% appreciation + 8.0% rent growth), your $839k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$447k 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.
• At $45,008/mo this rent would consume 300% of the median local household income ($180k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 595 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1979 — 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.
• 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.