11 Hale St

Compo, CT 06880

$599,000A-

3 bd · 1.5 ba · 1,334 sqft · Built 1974 · SingleFamily · Under Contract · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,515/mo
• Mortgage (P&I): −$3,141
• Tax + insurance: −$1,016
• HOA: −$0
• Vac / Maint / Mgmt: −$1,788
• Net cashflow: $2,569/mo
• Annual: $30,831/yr
• Cap rate: 12.07%
• Cash-on-cash: 20.63%
• DSCR: 1.92
• 1% rule: 1.42%
• Cash to close: $167,720

Investor read

• This is a 3-bed/1.5-bath single-family listed at $599k.
• At list price, monthly cash flow is $3k ($31k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $599k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads: area grade A — affects rentability + tenant quality, not the cash-flow math above.
• Westport School District (suburban): math 74% / reading 82% proficiency, ranked #3 of 153 in CT (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical; only 2% free/reduced lunch — higher-income household profile.
• Zoned schools: Saugatuck Elementary School (math 69% / reading 80%, grade A, #44 of 553 statewide, top 10%, 434 students, 2% FRL); Staples High School (math 76% / reading 92%, grade A, #3 of 194 statewide, top 1%, 1,686 students, 2% FRL) — zoned schools at 2% FRL track the district average.
• Watch-outs: flood insurance adds $314/mo.
• Market conditions: Rents rising fast (+5.6%/yr); 196 active listings in the ZIP; 39 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 1,151 units permitted in Western Connecticut Planning Region in 2024 (714 in 5+ unit buildings).
• 2 sale attempts since 34y 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.
• At projected returns (-3.0% appreciation + 5.6% rent growth), your $168k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); major wind risk, 72% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 41% of the median local income ($250k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Built in 1974 — 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.