14 Leon St

Webster, MA 06277

$330,000D+

3 bd · 1.5 ba · 1,152 sqft · Built 1963 · SingleFamily · Active · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,895/mo
• Mortgage (P&I): −$1,731
• Tax + insurance: −$420
• HOA: −$0
• Vac / Maint / Mgmt: −$608
• Net cashflow: $136/mo
• Annual: $1,638/yr
• Cap rate: 6.79%
• Cash-on-cash: 1.77%
• DSCR: 1.08
• 1% rule: 0.88%
• Cash to close: $92,400

Investor read

• This is a 3-bed/1.5-bath single-family listed at $330k.
• At list price, monthly cash flow is $136 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $290k (12.3% below list).
• It's been on market 23 days — a 2% lower offer ($325k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $290k (12.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#183 in MA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, housing A; Watch: crime D-, amenities F, commute F.
• Thompson School District (suburban): math 22% / reading 38% proficiency, ranked #124 of 153 in CT (top 81%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mary R. Fisher Elementary School (math 32% / reading 37%, grade F, #340 of 553 statewide, top 63%, 396 students, 43% FRL); Thompson Middle School (math 18% / reading 37%, grade F, #148 of 175 statewide, top 84%, 285 students, 43% FRL); Tourtellotte Memorial High School (math 15% / reading 54%, grade F, #119 of 194 statewide, top 62%, 220 students, 40% FRL) — zoned schools average 42% FRL vs 26% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 1 comparable units currently listed for rent nearby; 149 units permitted in Northeastern Connecticut Planning Region in 2024 (0 in 5+ unit buildings).
• Current owner paid $70k; list at $330k implies a 371% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 53% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.8% vs local median 3.2% in Webster — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• Built in 1963 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.