Southampton NY summer rental
Hey, my name is Sheng-Han. My partner and I are looking to buy a Southampton luxurious residence for summer rental and personal use as well. Does anyone have experience or general advice? As a newbie in the game, it appears to be quite risky just have cash flow mostly in the summer but it appears that the return and cap rate is substantial. As many BP members are going into luxurious rental space, I wonder what your thoughts are. Thank you so much.
If you’re going to use it personally in the summer than your money might not work. Yes you’ll get personal value from it, but a big part of your income potential will go away. Of course, the best time for locals is May, June, September and October anyway.
I am currently working on a project on the east end near Southhampton where our client is converting a long time LTR into an STR. Full rehab of the interior and exterior of the house. We will also be managing the property after construction is completed. When would you plan to utilize the home for personal use? I would say MDW-LDW is a huge income generator. However, the entire Fall season is popular on the east end because of all the wineries and farms.
Hey @Sheng-Han Kuo - I'm an investor and realtor. I haven't been directly involved in a transaction in that part of the island, but have communicated with other investors and brokers that have.
From what I've learnt, your biggest money suck is going to be your actual time and cost of keeping the property up to par as you have STR filter through. To resolve the amount of time you'll spend managing it, you may consider a property manager - but from what I've heard it's not cheap for luxury rental management in Southhampton.
Drop me a DM and I'm happy to chat more about it, thanks.
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Broker New York (#10401359681)
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Thank you so much for your reply! Certainly we will need to take this into consideration. Which part of island do you specialize in and can you help us find long term or short term rentals? Really appreciate your response!
It seems that it may be difficult to find cleaners, labor, etc. because of the severe shortage of affordable housing- even the Springs and Hampton Bays are very pricey now. I'm an East Hampton person (been going for 11 years) and an STR investor, and so I'm interested in this as well. But I really think it's a (barely?) break-even situation at today's prices and that's without personal use in the high season. Now, appreciation is another story completely. I'd park my money out there in a heartbeat (as long as it wasn't in a flood zone). I like Greenport because there is (limited) multifamily zoning in the walkable village. It would allow for a nice house-hack.
It was only a few years ago that the average home out there dropped below $1M...there was an article in the Times that I remember well. I wish I had the funds to invest back then! Luckily, the Hamptons will NEVER be out of style.