360 Hawley Rd

West Mountain, CT 10560

$699,000B

4 bd · 3.0 ba · 2,100 sqft · Built 1970 · SingleFamily · Active · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $15,793/mo
• Mortgage (P&I): −$3,666
• Tax + insurance: −$1,301
• HOA: −$0
• Vac / Maint / Mgmt: −$3,316
• Net cashflow: $7,509/mo
• Annual: $90,112/yr
• Cap rate: 19.30%
• Cash-on-cash: 46.45%
• DSCR: 3.07
• 1% rule: 2.26%
• Cash to close: $195,720

Investor read

• This is a 4-bed/3.0-bath single-family listed at $699k.
• At list price, monthly cash flow is $8k ($90k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($16k rent vs $699k).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• North Salem Central School District (rural): math 57% / reading 74% proficiency, ranked #125 of 590 in NY (top 21%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 6% free/reduced lunch — higher-income household profile.
• Zoned schools: Pequenakonck Elementary School (math 47% / reading 72%, grade B-, #745 of 2,108 statewide, top 39%, 438 students, 16% FRL); North Salem Middle School/High School (math 67% / reading 78%, grade B+, #671 of 1,100 statewide, top 61%, 547 students, 20% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 3 comparable units currently listed for rent nearby; rentals leasing fast (median 3d on market — plan ~1-2 weeks tenant-placement turnaround); 954 units permitted in Westchester County in 2024 (649 in 5+ unit buildings).
• Westchester County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $196k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 19.3% vs local median 3.1% in West Mountain — 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

• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.