18 Columbia St

Ansonia, CT 06401

$650,000F

7 bd · 3.0 ba · 2,968 sqft · Built 1934 · MultiFamily · Under Contract · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,489/mo
• Mortgage (P&I): −$3,409
• Tax + insurance: −$745
• HOA: −$0
• Vac / Maint / Mgmt: −$1,153
• Net cashflow: $183/mo
• Annual: $2,195/yr
• Cap rate: 6.63%
• Cash-on-cash: 1.21%
• DSCR: 1.05
• 1% rule: 0.84%
• Cash to close: $182,000

Investor read

• This is a 3 × 2-bed/?-bath units multifamily listed at $650k.
• At list price, monthly cash flow is $183 ($2k/yr) — positive. Per door: $61/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $549k (15.6% below list).
• It's been on market 23 days — a 2% lower offer ($640k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $549k (15.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#87 in CT) — a middle-class / working-renter tenant base. Strengths: crime A+, health & safety A+, housing A-; Watch: employment C-, amenities F, commute F.
• Ansonia School District (suburban): math 13% / reading 25% proficiency, ranked #144 of 153 in CT (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Prendergast School (math 10% / reading 22%, grade F, #468 of 553 statewide, top 85%, 606 students, 67% FRL); Ansonia Middle School (math 15% / reading 29%, grade F, #158 of 175 statewide, top 90%, 537 students, 63% FRL); Ansonia High School (math 22% / reading 37%, grade F, #139 of 194 statewide, top 74%, 555 students, 60% FRL).
• Watch-outs: built in 1934 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+7.3%/yr); 52 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 502 units permitted in Naugatuck Valley Planning Region in 2024 (171 in 5+ unit buildings).
• 3 sale attempts since 16y 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 $87k; list at $650k implies a 647% 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 6.6% vs local median 3.8% in Ansonia — 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.
• At $5,489/mo this rent would consume 76% of the median local household income ($86k/yr) (locally 541% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1934 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.