387 S Main St

Seymour, CT 06483

$729,900C

7 bd · 4.0 ba · 4,362 sqft · Built 1770 · MultiFamily · Active · 86 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,661/mo
• Mortgage (P&I): −$3,828
• Tax + insurance: −$1,056
• HOA: −$0
• Vac / Maint / Mgmt: −$1,819
• Net cashflow: $1,958/mo
• Annual: $23,498/yr
• Cap rate: 9.51%
• Cash-on-cash: 11.50%
• DSCR: 1.51
• 1% rule: 1.19%
• Cash to close: $204,372

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $730k.
• At list price, monthly cash flow is $2k ($23k/yr) — positive. Per door: $490/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $730k).
• It's been on market 86 days — a 6% lower offer ($686k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $686k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-2.4%/yr); year-one equity from $5k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Seymour School District (suburban): math 34% / reading 50% proficiency, ranked #93 of 153 in CT (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 19% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1770 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 55 active listings in the ZIP; solid renter incomes; 502 units permitted in Naugatuck Valley Planning Region in 2024 (171 in 5+ unit buildings).
• 5 sale attempts since 5y 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 $590k; 24% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-2.4% appreciation + 3.0% rent growth), your $204k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $8,661/mo this rent would consume 96% of the median local household income ($108k/yr) (locally 221% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 86 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• 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 1770 — 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.
• 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.