$4,490,000
Investment Summary
- Monthly Cash Flow
- -$18,407
- Cap Rate
- 1.1%
- Cash-on-Cash Return
- -21.4%
- Debt Coverage Ratio
- 0.19
- Internal Rate of Return (5 years)
- -16.7%
Cash Flow
Net Operating Income (NOI) minus mortgage payments.
Calculation:
NOI - Mortgage Payments
Cap Rate (Market Value)
Capitalization Rate is a rate of return that compares the yearly Net Operating Income (NOI) to the market value.
Calculation:
NOI / Market Value
Cash-on-Cash Return (CoC)
Annual Cash Flow / Cash Invested
Calculation:
Annual cash flow divided by initial cash invested.
Debt Coverage Ratio (DCR)
Net Operating Income (NOI) divided by total debt payments.
Calculation:
NOI / Total Debt Payments
Internal Rate of Return (IRR)
A metric for assessing profitability over time. IRR is the discount rate at which the net present value (NPV) of all future cash flows (positive and negative) from an investment equals zero — including both periodic cash flow (such as rent) and a projected sale at the end of the holding period. It represents the expected annualized return, accounting for income, expenses, and the recovery of capital through a future sale.
Property Description
Nestled along the pristine shores of Port Jefferson Harbor, “The Cottage” a 5,800 square foot English Country Estate set on 3.85 lush waterfront acres with 530 feet of private beachfront is now for sale. Built circa 1906 as the private residence of Ralph Peters, former President of the Long Island Rail Road, the Estate has been preserved and restored as a master class in timeless early American craftsmanship and modern luxury. Step inside and be transported; this is not merely a home, but a living gallery. A reverent celebration of form and function, where flawless millwork and stained glass accents evoke a period era of workmanship. Diamond-pane windows framed with hand-finished grilles wrap the facade and invite natural light showcasing curated interiors filled with original artwork and antique furnishings. The heart of the residence is an awe-inspiring open concept grand room, crowned by a two-story atrium and 360-degree mezzanine. A massive central fireplace anchors the open concept space while the wrap around enclosed porch offers sweeping first-floor vistas of the Harbor, providing an unforgettable sensory experience. A dedicated first-floor study and formal dining room, each with their own fireplace, create a balance of intimacy and grandeur. The primary suite is an oasis featuring a resort-style full marble bath with oversized soaking tub. The home’s upper level, which includes a formal office and has a dedicated stairwell, offers additional bedrooms and bath, bringing the total for the house to eight bedrooms and four and a half baths. The homes lower level includes a changing room with dual showers, water closet, washer/dryer and direct outdoor access perfect for beach days. Aproned in cobblestone, the long private driveway, auto court and full roundabout provide access to a multi-level and terraced property that includes large sun deck and pergola overlooking the beach. A detached two-car garage complements a property designed and engineered with infrastructure and sustainability in mind. Retaining walls, terraces, patios, walkways and planters are constructed with the finest natural stone, cobblestone, crushed stone, slate and timber. A park-like property adorned in natural, mature perennials and blooming shrubs. A singular North Shore landmark in luxury, where history and heritage meet horizon on the bluffs of Belle Terre.
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Location
Property Details
Parking
- Garage Spaces: 2
- Spaces Total: 0
Bedroom Information
- # of Bedrooms: 8
Bathroom Information
- # of Baths (Full): 4
- # of Baths (Total): 5.0
Interior Features
- # of Rooms: 26
- # of Stories: 2
- Basement: Yes
- Basement Description: Partially Finished
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Wood
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 0201006.0005.00005.000
- Lot Size: 167706 sqft
Property Information
- Property Type: Single Family Residence
- Style: Estate
- Year Built: 1906
Tax Information
- Annual Tax: $39,520
Utilities
- Water & Sewer: Public
- Heating: Electric, Oil
- Cooling: Central Air
Location
- County: Suffolk
Listing Details
Investment Summary
- Monthly Cash Flow
- -$18,407
- Cap Rate
- 1.1%
- Cash-on-Cash Return
- -21.4%
- Debt Coverage Ratio
- 0.19
- Internal Rate of Return (5 years)
- -16.7%
Cash Flow
Net Operating Income (NOI) minus mortgage payments.
Calculation:
NOI - Mortgage Payments
Cap Rate (Market Value)
Capitalization Rate is a rate of return that compares the yearly Net Operating Income (NOI) to the market value.
Calculation:
NOI / Market Value
Cash-on-Cash Return (CoC)
Annual Cash Flow / Cash Invested
Calculation:
Annual cash flow divided by initial cash invested.
Debt Coverage Ratio (DCR)
Net Operating Income (NOI) divided by total debt payments.
Calculation:
NOI / Total Debt Payments
Internal Rate of Return (IRR)
A metric for assessing profitability over time. IRR is the discount rate at which the net present value (NPV) of all future cash flows (positive and negative) from an investment equals zero — including both periodic cash flow (such as rent) and a projected sale at the end of the holding period. It represents the expected annualized return, accounting for income, expenses, and the recovery of capital through a future sale.
Purchase Details
Purchase PriceThe price paid for the property. Purchase price:
| $4,490,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$3,592,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $898,000 |
Closing CostsFees and expenses associated with purchasing a property, typically ranging from 2% to 5% of the home’s purchase price, paid at the end of a home purchase to cover services like lending, title transfer, and taxes. Closing costs:
| $134,700 |
Rehab CostsCosts incurred to repair or improve the property, including: roof, flooring, exterior siding, kitchen, exterior paint, bathrooms, etc. Rehab costs:
| $0 |
Initial Cash InvestedThe total initial cash invested in the property. Calculation:Down payment + Buying costs + Rehab costs Initial cash invested:
| $1,032,700 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 5,804 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $774 |
Monthly Rent Per Square FootMonthly rent divided by the number of square feet. This ratio helps investors compare rental income efficiency across properties, markets, and unit sizes Calculation:Monthly Rent / Square Feet Monthly rent per square foot:
| $1.90 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $3,592,000 |
|---|---|
Loan to Value Ratio (LTV)Loan amount divided by the market value of the property. Calculation:Loan Amount / Market Value
Loan to value ratio:
| 80.0% |
Loan TypeThe type of loan (e.g., fixed, adjustable).
Loan type:
| Amortizing |
TermThe loan repayment period in years.
Term:
| 30 years |
Interest RateThe percentage a lender charges on the borrowed amount of a loan, determining the cost of borrowing money.
Interest rate:
| 6.500% |
Principal & Interest (PI)The principal is the portion of the loan payment that reduces the loan balance. The interest is the lender's charge for borrowing money. Calculation:(P * r * (1 + r) ** n) / ((1 + r) ** n - 1) Where:
P = Loan amount (principal)
Principal & interest:
| $22,704 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $3,293 |
InsuranceThe costs for insurance coverage to protect against financial losses due to risks like fire, natural disasters, theft, liability, or tenant-related damages. Calculation:Assumes 7% of gross rental income, unless insurance rates are specified.
Insurance:
| $770 |
Private Mortgage Insurance (PMI)A fee that borrowers pay when they take out a conventional loan with a loan-to-value (LTV) ratio above 80%.
Private mortgage insurance (PMI):
| $0 |
Monthly PaymentThe fixed amount a borrower pays each month to repay a loan. It typically includes principal and interest (P&I) and may also cover property taxes, insurance, HOA fees, and PMI if escrowed. Monthly payment:
| $26,767 |
Operating Income
| % Rent | Monthly | Yearly | |
|---|---|---|---|
Gross RentThe total rental income received from tenants before deducting any expenses. Includes base rent, late fees, pet fees, parking fees, and other recurring charges.
Gross rent:
| $11,000 | $132,000 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$660 | -$7,920 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $10,340 | $124,080 |
Operating Expenses
| % Rent | Monthly | Yearly | |
|---|---|---|---|
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services. | 30% | -$3,293 | -$39,520 |
InsuranceThe costs for insurance coverage to protect against financial losses due to risks like fire, natural disasters, theft, liability, or tenant-related damages. Calculation:Assumes 7% of gross rental income, unless insurance rates are specified. | 7% | -$770 | -$9,240 |
Property ManagementThe costs associated with hiring a property manager to handle the day-to-day operations of a rental property. Includes management fees, leasing fes, eviction fees, etc. Calculation:Assumes 8% of gross rental income. | 8% | -$880 | -$10,560 |
Repairs & MaintenanceOngoing costs for routine upkeep and minor fixes needed to keep a property in good working condition. Calculation:Assumes 5% of gross rental income. Varies by property age and condition. | 5% | -$550 | -$6,600 |
Capital ExpensesLarge, infrequent costs for major improvements or replacements, like a new roof, HVAC system, or appliances. Calculation:Assumes 5% of gross rental income. Varies by property age. | 5% | -$550 | -$6,600 |
HOA FeesRegular dues paid to a Homeowners Association for community maintenance, amenities, and management. Similar fees include: Condo Association Fees, Co-op Maintenance Fees, etc. | n/a | n/a | n/a |
Operating ExpensesRecurring costs required to maintain and manage a rental property, including property taxes, insurance, maintenance, repairs, utilities (if paid by the owner), property management fees, and other day-to-day expenses. Calculation:Insurance + Property Taxes + Property Management + Repairs & Maintenance + Capital Expenditures + HOA Fees | 55% | -$6,043 | -$72,520 |
Cash Flow
| Monthly | Yearly | |
|---|---|---|
Net Operating Income (NOI)The income generated from a property after deducting all operating expenses but before deducting mortgage payments, taxes, and capital expenditures. Calculation:Gross Operating Income - Operating Expenses
Net operating income:
| $4,297 | $51,564 |
Mortgage PaymentThe fixed amount a borrower pays each month to repay a loan. It typically includes principal and interest (P&I) and may also cover property taxes, insurance, HOA fees, and PMI if escrowed. | -$22,704 | -$272,448 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $18,407 | $220,884 |