Multi-Residence Short-Term Rental
For Sale
$2,200,000
718 Montauk Hwy, East Quogue, NY 11942
Farmhouse, two cottages, and an attached studio provide multiple residences with rental permits already in place.
Property Size10,044 SF
Days on Market37
Property Features for 718 Montauk Hwy
General Information
Standard status
Active
Size
10,044 SF
Property subtype
Investment
Units
Unit Mix
1 x 5BR house, 2 x 1BR cottage, 1 x studio
Multifamily Units
4
Additional Details
Public Transit
Yes
Taxes and HOA fees
Annual Taxes
$9,720
Building Details
Building Size
10,044 SF
Year Built
1909
Units
4
Listing Agency:
Douglas Elliman Real Estate
Listed By:
Geraldine Wyman · License #10401273136
(631) 723-4183
Source:
Elliman
Added: Jul 29
Changed: Aug 31
Last Checked: Sep 1 at 9:06PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Douglas Elliman Real Estate
Investment Insights
Based on property information with market context.
This multi-residence property includes a farmhouse with five bedrooms, a living room, formal dining room, eat-in country kitchen, den, and wraparound porch. The compound also features two separate one-bedroom cottages and an attached studio, each with a private yard area. Rental permits are in place for the residences.
The grounds include ample parking and outdoor entertaining areas, with room for a pool. The property borders a 35-acre tree farm and sits near the Quogue border. East Quogue shops, restaurants, ocean beaches, train service, and Hampton Jitney stops are nearby, while New York City is less than two hours away.
The grounds include ample parking and outdoor entertaining areas, with room for a pool. The property borders a 35-acre tree farm and sits near the Quogue border. East Quogue shops, restaurants, ocean beaches, train service, and Hampton Jitney stops are nearby, while New York City is less than two hours away.
Key Highlights
- Farmhouse includes five bedrooms, living room, formal dining room, eat‑in country kitchen, den, and wraparound porch
- Two separate one‑bedroom cottages plus an attached studio
- Rental permits are already in place
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$178,507
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.11%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,570,140
$3.6M
Cap Rate 7%
$2,550,100
$2.6M
Cap Rate 9%
$1,983,411
$2.0M
Market Conditions
NOI Build-Up for 10,044 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$347.1K $34.56/SF
− Vacancy
−$22.6K −$2.25/SF
EGI
$324.6K $32.31/SF
− OpEx
−$146.1K −$14.54/SF
NOI
$178.5K $17.77/SF
Area
Suffolk County, NY
Vacancy
6.50%
Lease Rate
$34.56 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,570,140
Cap Rate 7%
$2,550,100
Cap Rate 9%
$1,983,411
Alternative Uses
Best Use
Apartment 5plus
$2.55M
$2.23M – $2.98M
NOI $178,507 @ 7.0% cap · market cap 8.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.06M
$2.68M – $3.57M
NOI $214,191 @ 7.0% cap · market cap 9.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
166
Businesses Nearby
Explore this area
Business Placement
Demographics for 11942, NY
5,571
Population
3,471
Households
1.6
Avg Household Size
45
Median Age
51%
College-Educated
93%
High-School Grad
8.5 sq mi
ZIP Area
655
Density / Sq Mi
$106,875
Median Household Income
$50,816
Median Earnings
$1,785
Median Rent
$801,100
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Short term rental property - Farmhouse, two cottages, and an attached studio provide multiple residences with rental permits already in place.
Where is this short term rental property located?
The property is located at 718 Montauk Hwy East Quogue, NY.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Farmhouse includes five bedrooms, living room, formal dining room, eat‑in country kitchen, den, and wraparound porch; Two separate one‑bedroom cottages plus an attached studio; Rental permits are already in place
