315 Salisbury Rd

Canaan, CT 06018

$195,000C-

4 bd · 2.0 ba · 1,704 sqft · Built 1935 · SingleFamily · Under Contract · 48 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,711/mo
• Mortgage (P&I): −$1,023
• Tax + insurance: −$424
• HOA: −$0
• Vac / Maint / Mgmt: −$359
• Net cashflow: $-95/mo
• Annual: $-1,138/yr
• Cap rate: 5.71%
• Cash-on-cash: -2.08%
• DSCR: 0.91
• 1% rule: 0.88%
• Cash to close: $54,600

Investor read

• This is a 4-bed/2.0-bath single-family listed at $195k.
• At list price, monthly cash flow is $-95 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $178k (8.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $171k (12.2% below list).
• It's been on market 48 days — a 3% lower offer ($189k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $171k (12.2% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($1k loan paydown + $7k appreciation (3.5% local appreciation)).
• Location reads 62/100 on livability (#133 in CT) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A; Watch: amenities F, commute F, employment F.
• Regional School District 01 (rural): math 30% / reading 60% proficiency, ranked #147 of 192 in CT (top 77%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: North Canaan Elementary School (math 42% / reading 57%, grade D, #237 of 553 statewide, top 45%, 238 students, 35% FRL); Housatonic Valley Regional High School (math 22% / reading 57%, grade F, #107 of 194 statewide, top 56%, 319 students, 33% FRL) — zoned schools at 34% FRL track the district average.
• Watch-outs: built in 1935 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 12 active listings in the ZIP; 154 units permitted in Northwest Hills Planning Region in 2024 (6 in 5+ unit buildings).
• 5 sale attempts since 7y 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 $195k implies a 124% gain — meaningful room to come down on a strong offer.
• By year 5, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.7% vs local median 0.7% in Canaan — 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 48 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1935 — 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.
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.