968 Heritage Vlg Unit A

Heritage Village, CT 06488

$215,000D

2 bd · 2.0 ba · 1,071 sqft · Built 1973 · Condo · Under Contract · 122 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,343/mo
• Mortgage (P&I): −$1,127
• Tax + insurance: −$363
• HOA: −$783
• Vac / Maint / Mgmt: −$492
• Net cashflow: $-422/mo
• Annual: $-5,068/yr
• Cap rate: 3.94%
• Cash-on-cash: -8.42%
• DSCR: 0.63
• 1% rule: 1.09%
• Cash to close: $60,200

Investor read

• This is a 2-bed/2.0-bath condo listed at $215k.
• At list price, monthly cash flow is $-422 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $140k (34.7% below list).
• Meets the 1% rule at list price ($2k rent vs $215k).
• It's been on market 122 days — a 12% lower offer ($189k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $140k (34.7% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#112 in CT) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, health & safety A+; Watch: schools D+, employment D, amenities F.
• Regional School District 15 (suburban): math 56% / reading 64% proficiency, ranked #46 of 153 in CT (top 30%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 4% free/reduced lunch — higher-income household profile.
• Watch-outs: HOA is 33% of rent.
• Market conditions: 156 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 502 units permitted in Naugatuck Valley Planning Region in 2024 (171 in 5+ unit buildings).
• 3 sale attempts since 8y ago; this cycle's ask has dropped $34k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $125k; list at $215k implies a 72% gain — meaningful room to come down on a strong offer.
• Cap rate 3.9% vs local median 3.2% in Heritage Village — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 122 days. Have you received any prior offers? Is the seller open to a 35% concession, seller financing, or rate buy-down credit?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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 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?