$6,735,000
Investment Summary
- Monthly Cash Flow
- -$29,835
- Cap Rate
- 0.8%
- Cash-on-Cash Return
- -23.1%
- Debt Coverage Ratio
- 0.12
- Internal Rate of Return (5 years)
- -18.3%
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
Architectural Masterpiece with Boat Dock in Watermill Welcome to 53 Bay Ave, Water Mill South - an exceptional, newly built masterpiece, that exudes elegance and custom sophistication. Designed by the renowned architect James D'Auria and crafted by the esteemed Wright & Co., this bright and stunning modern farmhouse is a true work of art featuring approximately 5,039 sf of living space with big windows inundating the home with natural light, blending the indoors with landscaping and creating a warm atmosphere. Nestled south of the highway on a tranquil cul-de-sac street, this stunning 4-bedroom, 3 1/2-bathroom home offers the perfect blend of modern style and timeless charm. Upon entering the spacious foyer, you are captivated and greeted by a dramatic chic living room featuring soaring 25-foot ceilings and a beautiful gas fireplace. Surrounded by floor-to-ceiling windows the space is bathed in natural light. Features include beautiful wood floors throughout, creating a warm and cohesive aesthetic. The chef's kitchen is a true focal point, featuring Caesarstone countertops, an oversized island, and top-of-the-line appliances with an open-concept design seamlessly flowing into the dining area, which is highlighted by a charming wood-burning fireplace - perfect for cozy gatherings. French doors open to a covered outdoor patio, providing a seamless connection between indoor and outdoor living perfect for alfresco dining or relaxation. The generously sized den, with its stunning 15-foot ceilings, is graced by beautiful antique doors from the 1600s, sourced from India, adding a sense of history and character to this contemporary home. On the second floor, enjoy breathtaking water views of Hayground Cove and Mecox Bay. The spacious primary bedroom includes a private balcony overlooking the bay, a gas fireplace, a private deck with an outdoor shower, double walk-in-closets and ample space for relaxation. Additionally, this level offers two guest rooms, two full bathrooms, and a versatile TV den that was originally designed as a fourth bedroom. The property is thoughtfully equipped with modern amenities, including a one-car garage, central air conditioning, a backup generator, a geothermal system, a Sonos audio system, and a security system for peace of mind. Enjoy ultimate relaxation with beautiful grounds meticulously landscaped with mature trees, perennial flower beds, and a gorgeous rose garden. A heated pool and a vibrant pergola offer the perfect spot to unwind in this peaceful oasis. For nature enthusiasts, wander through the beautiful backyard, which features a nature trail that invites you through nature's splendor offering a peaceful escape right at your doorstep. For boating and outdoor lovers, the private boat dock is reached by a path, adorned by native vegetation through 100-year-old blueberry trees, which meanders toward the private dock overlooking Hayground Cove and Mecox Bay, offering unparalleled access to water activities. An added bonus, a 14+/- foot Boston Whaler is included, making it easy to set off for a day and to explore the cove, visiting nearby beaches, or simply enjoying the beauty of nature. This exceptional property provides room to expand, offering endless potential. 53 Bay Ave, Water Mill presents a rare opportunity to own a one-of-a-kind Hamptons retreat combining nature, waterfront living, and tranquility. Perfect for those seeking the ultimate escape, this home is truly an idyllic haven for both relaxation and entertainment.
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Location
Property Details
Parking
- Details: Driveway
- Garage Spaces: 1
- Spaces Total: 0
Bedroom Information
- # of Bedrooms: 4
Bathroom Information
- # of Baths (Full): 3
- # of Baths (Total): 4.0
Interior Features
- # of Rooms: 8
- # of Stories: 2
- Basement: Yes
- Basement Description: Crawl Space
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Wood
- Pool: Yes
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 0900102.0003.00004.004
- Lot Size: 104108 sqft
Property Information
- Property Type: Single Family Residence
- Style: Modern
- Year Built: 2015
Tax Information
- Annual Tax: $21,387
Utilities
- Water & Sewer: Private, Well
- Heating: Forced Air
- Cooling: Central Air
Location
- County: Suffolk
Listing Details
Investment Summary
- Monthly Cash Flow
- -$29,835
- Cap Rate
- 0.8%
- Cash-on-Cash Return
- -23.1%
- Debt Coverage Ratio
- 0.12
- Internal Rate of Return (5 years)
- -18.3%
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:
| $6,735,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$5,388,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $1,347,000 |
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:
| $202,050 |
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:
| $1,549,050 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 5,039 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $1,337 |
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:
| $1.73 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $5,388,000 |
|---|---|
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:
| $34,056 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $1,782 |
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:
| $609 |
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:
| $36,447 |
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:
| $8,700 | $104,400 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$522 | -$6,264 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $8,178 | $98,136 |
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. | 20% | -$1,782 | -$21,387 |
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% | -$609 | -$7,308 |
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% | -$696 | -$8,352 |
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% | -$435 | -$5,220 |
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% | -$435 | -$5,220 |
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 | 45% | -$3,957 | -$47,487 |
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:
| $4,221 | $50,652 |
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. | -$34,056 | -$408,672 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $29,835 | $358,020 |