593 Mohegan Avenue Pkwy

Waterford, CT 06375

$349,000D

4 bd · 2.0 ba · 2,067 sqft · Built 1952 · SingleFamily · Active · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,513/mo
• Mortgage (P&I): −$1,830
• Tax + insurance: −$416
• HOA: −$0
• Vac / Maint / Mgmt: −$528
• Net cashflow: $-260/mo
• Annual: $-3,124/yr
• Cap rate: 5.40%
• Cash-on-cash: -3.20%
• DSCR: 0.86
• 1% rule: 0.72%
• Cash to close: $97,720

Investor read

• This is a 4-bed/2.0-bath single-family listed at $349k.
• At list price, monthly cash flow is $-260 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $303k (13.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $251k (28.0% below list).
• It's been on market 80 days — a 6% lower offer ($328k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $251k (28.0% 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 76/100 on livability (#50 in CT, #3,268 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Waterford School District (suburban): math 45% / reading 58% proficiency, ranked #75 of 153 in CT (top 49%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Quaker Hill Elementary School (math 42% / reading 52%, grade D-, #256 of 553 statewide, top 48%, 334 students, 29% FRL); Clark Lane Middle School (math 45% / reading 59%, grade C+, #73 of 175 statewide, top 43%, 549 students, 32% FRL); Waterford High School (math 42% / reading 67%, grade C-, #63 of 194 statewide, top 39%, 735 students, 28% FRL) — zoned schools average 30% FRL vs 14% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 12 active listings in the ZIP; 487 units permitted in Southeastern Connecticut Planning Region in 2024 (244 in 5+ unit buildings).
• 17 sale attempts since 19y ago; this cycle's ask has dropped $26k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $250k; 40% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 5.4% vs local median 3.2% in Waterford — 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

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 80 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1952 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.