How to buy a Hamptons hotel condo or co-op unit as an investment property
- You can find studio, one-, and two-bedroom investment properties for less than $1 million
- These resorts have on-site management offices that handle all aspects of the rental program
- A good gross income average for a one-bedroom unit with water views is about $35,000 a year
Co-op suites at oceanfront The Hermitage come with luxury perks like a heated gunite pool and spa, fitness center, tennis and pickleball courts, and cabana service on the private beach.
If you've ever thought about purchasing a summer place or investment property in the Hamptons but couldn't swing the steep price tag, there just might be a way to live the dream—you can buy into a hotel condo or co-op, which are numerous in this area and can be a fraction of the cost of a single-family house.
That's important to know because home prices in this stretch of paradise are still at an all-time high. In the first quarter, the median sales price for single-family houses increased to $2.6 million, up over 26 percent compared to the first quarter of 2025, according to Housing Notes, the market report by Jonathan Miller, president and CEO of appraisal firm Miller Samuel. However, the median price for condos, $980,000, was down 50 percent compared to the first quarter of last year. What's more, the share of sales above the $5 million threshold were the highest on record and the share of sales below $1 million was the lowest on record.
Being able to come up with enough money is not the only consideration, however. A vacation investment property can require a lot of work: You need to find renters and maintain the property, not always an easy feat when you don't live nearby.
But with a hotel condo or co-op, you own the apartment, and you (or anyone who rents your place) can enjoy the hotel's amenities as well as housekeeping and other hotel services. A management company will rent the property on your behalf so you can be as hands-off as possible.
[Editor's note: A previous version of the article ran in April 2025. We are presenting it again here with updated information for May 2026.]
In this week's Buy Curious, Florence Costello of Martha Greene Real Estate and Justin Agnello, Hara Kang, and James Keogh, known as the Atlantic Team of Douglas Elliman, tell you everything you need to know about purchasing a place in a condo/co-op hotel in the Hamptons area, including where to find them, how much you'll be shelling out each month, and if you can expect to see a return on your investment.
The question:
I've heard that a condo or co-op hotel in the Hamptons might be a good low-key investment property. Does that ring true? If so, can you tell me more?
The reality:
If you want to own an investment property in the Hamptons area but don't want to do any of the work typically involved in property ownership, a condo or co-op hotel could definitely work for you.
The advantages are numerous: Someone else will handle finding renters, allowing you to earn money on your property when it's not in use. You don't need to clean the unit or change the bedding after you or your renters leave. And you'll be able to sit back, relax, and watch it all unfold from afar.
"I can't think of any cons to doing this," Costello said.
What are the sought-after condo/co-op hotels?
Montauk Manor (which Costello represents) is a highly desirable destination in Montauk, according to the Atlantic Team. The views are phenomenal and the staff and management are world-class, they said. Amenities include indoor and outdoor pools, a day spa, exercise room, tennis courts, Italian restaurant, driving range, putting green, outdoor yoga classes, and electric vehicle charging stations.
Also in Montauk is The Surf Club, which offers rare one- and two-bedroom duplexes with ocean views. The club has a heated outdoor pool, fitness center, direct beach access, free parking, outdoor movie nights, yoga and Pilates classes, and concierge services.
The Beach Plum Resort, another Montauk locale, offers direct beach access, a heated pool, complimentary wifi, and outdoor grills. There are even play areas for kids, making it an excellent option for families.
Direct beach access, a heated pool, sauna, fitness room, and tennis courts are on deck at The Beachcomber Resort at Montauk, a seasonal community open from April 25th through the end of October (exact dates subject to change).
Dune Resorts owns several co-op properties in the Hamptons, with two in Montauk. The Atlantic Bluffs Club is a co-op community within walking distance of the beach and town. Soundview Montauk, located on Block Island Sound, is a seasonal resort with a playground, private sun deck, and picnic area with barbecues. All Dune Resorts' properties have heated pools and high-speed wifi. Be sure to check Dune Resorts' frequently updated portfolio of investment opportunities.
Other Dune Resort properties include Windward Shores, a year-round resort consisting of 45 townhouse-style apartments situated along the Napeague Stretch between Amagansett and Montauk; it has two tennis courts and cabana service on the private beach with lounge chairs, sun umbrellas, and towels. Nearby, The Hermitage is a seven-acre resort with studios and one- and two-bedroom condos plus seasonal features counting two tennis courts, cabana service on the private beach, and on-site parking.
Sea Crest, a beachfront resort with grass-covered dunes in Amagansett, offers tennis, basketball, and handball courts and a large private beach with seasonal cabana service. East Hampton House, situated on five acres of manicured lawns within walking distance of the village, offers a heated outdoor pool, fitness center, two tennis courts, and barbecue grills.
Another popular spot in Amagansett is The Ocean Dunes, an oceanfront co-op resort with a heated outdoor pool and private beach access.
How do you rent out a hotel condo/co-op?
"The building takes care of it all," Costello said. In most cases, either an in-house or outsourced management company handles the entire rental process, meaning your work is complete once you've purchased the property and added it to the rental pool.
You may have the option to do the turnover and sourcing yourself, but that process can be burdensome, according to the Atlantic Team.
Costello added that in her experience with Montauk Manor, most people keep their properties in the rental pool for the summer season—which typically runs from early May to November—to maximize profits. In the off-season, the owners enjoy their spaces.
What can you expect to pay in maintenance?
Fees will vary from unit to unit and complex to complex. Many Hamptons-area resorts close for the winter months and therefore have lower maintenance fees.
If you buy in a complex that stays open year-round, you will have to factor in winter maintenance, which can be steeper thanks to the weather, according to the Atlantic Team.
A rough estimate would be total fees that range from $800 a month on the low end to over $2,000 a month on the high end.
How big do these properties tend to be?
Most of the units at these condo/co-op hotels are studios and one bedrooms, ranging from 400 to 500 square feet.
Some larger, two-plus-bedroom units can also be found at most resorts; they are significantly more expensive and come to market less frequently.
Can buyers expect to see a return on their investment?
Once the maintenance fees and all other associated costs are factored in, an owner can still end up in the green, according to the Atlantic Team.
Costello added that while purchasing one of these types of properties isn't as foolproof as putting money into a CD, "it will eventually pay for itself."
Do owners mingle with hotel guests?
In most cases, the answer is yes—especially at amenity spaces like the pool and fitness center as well as common areas.
Some resorts separate private residences from rentable hotel rooms, while others don't. If this is important to you, be sure to ask.
Is it hard to get a mortgage for a unit in a condo/co-op hotel?
Unfortunately, yes, said our experts. As such, most people will need to pay cash for these types of properties.
And according to at least one loan officer, the reason for this is simpler than you might think. "We're not in the business to lend to hotels," she said. "We do residential lending."
However, if the condo/co-op component of the property maintains its financials separately from the hotel portion, some banks may consider it. In these cases, you should have enough liquid assets to cover at least six months worth of mortgage payments, a strong credit score and history, and a debt-to-income ratio of no more than 45 percent.
Check out these condo/co-op hotels in the Hamptons/Montauk area.
707 Old Montauk Hwy., #B-21, Montauk
Located at the Atlantic Bluffs Club, this first-floor, 450-square-foot studio co-op features a fireplace, covered ocean-view mahogany deck, direct ground-level access, front entry porch, central A/C, plus basement storage and laundry on the premises. Other amenities include a heated in-ground pool, designated parking, and an on-site super. The unit is listed for $635,000, with a monthly fee of $1,862.
2148 Old Montauk Hwy., #C09, Amagansett
With two bedrooms and two baths, this 723-square-foot poolside co-op features a full kitchen, dinette, living room and ocean-facing private deck. It has been reduced from $999,000 to $899,999; monthly charges are $1,898. The Hermitage is a seven-acre resort that offers pickleball courts, tennis courts, a fitness center, heated pool with spa, private beach, and cabana service. An on-site rental program is also available.
707 Old Montauk Hwy., #A-57, Montauk
Asking $949,000, this first-floor, 601-square-foot corner co-op has two bedrooms, one bath, and a fireplace, plus access to all the amenities at the Atlantic Bluffs Club by Dune Resorts. The monthly fees are $1,862.
226 Pantigo Road, #310, East Hampton
Part of Dune Resorts' East Hampton House, this upper-level co-op shares access to a brand-new outdoor heated pool, tennis courts, a fitness room, guest laundry facility, and an on-site management team. The "deluxe studio" includes a full bath, living room, and an "amenity station" equipped with a mini-fridge, microwave, and coffee maker. A semi-private sun deck overlooks the manicured grounds. It is priced at $499,000; monthly maintenance is $988.
2166 Montauk Hwy., #75, Amagansett
A fully renovated two-bedroom, two-bath co-op at Sea Crest Resort and Residences is on the market for $895,000, down from $1.2 million. The 880-square-foot unit offers an open-plan living room, dining area, and kitchen, as well as two generously sized decks off the living room and primary bedroom. Amenities include a heated pool, clubhouse, playground, basketball court, two tennis courts, and an outdoor dining and barbecue area.
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