2 River Mead #2

West Hartford, CT 06001

$334,900B

2 bd · 2.5 ba · 1,825 sqft · Built 1984 · Condo · Under Contract · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,700/mo
• Mortgage (P&I): −$1,756
• Tax + insurance: −$558
• HOA: −$605
• Vac / Maint / Mgmt: −$987
• Net cashflow: $794/mo
• Annual: $9,523/yr
• Cap rate: 9.14%
• Cash-on-cash: 10.16%
• DSCR: 1.45
• 1% rule: 1.40%
• Cash to close: $93,772

Investor read

• This is a 2-bed/2.5-bath condo listed at $335k.
• At list price, monthly cash flow is $794 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $335k).
• It's been on market 27 days — a 2% lower offer ($330k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $330k (1.5% below list) — sets the bar for market timing.
• 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 79/100 on livability (#27 in CT, #1,989 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime B+; Watch: amenities F, cost of living F.
• Avon School District (suburban): math 64% / reading 77% proficiency, ranked #11 of 153 in CT (top 7%) — strong family-tenant draw, lease renewals of 3-5y typical; only 5% free/reduced lunch — higher-income household profile.
• Zoned schools: Pine Grove School (math 64% / reading 69%, grade B+, #109 of 553 statewide, top 20%, 643 students, 11% FRL); Avon Middle School (math 65% / reading 80%, grade A, #6 of 175 statewide, top 3%, 524 students, 11% FRL); Avon High School (math 72% / reading 88%, grade A, #6 of 194 statewide, top 3%, 923 students, 11% FRL).
• Market conditions: 109 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 1,867 units permitted in Capitol Planning Region in 2024 (1,399 in 5+ unit buildings).
• 8 sale attempts since 23y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $155k; list at $335k implies a 116% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.1% vs local median 3.3% in West Hartford — 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 does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.