6-A Birch Hill Ln

Gaylordsville, CT 06757

$275,000B

4 bd · 1.5 ba · 1,792 sqft · Built 1935 · SingleFamily · Under Contract · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,457/mo
• Mortgage (P&I): −$1,442
• Tax + insurance: −$309
• HOA: −$0
• Vac / Maint / Mgmt: −$726
• Net cashflow: $979/mo
• Annual: $11,753/yr
• Cap rate: 10.57%
• Cash-on-cash: 15.26%
• DSCR: 1.68
• 1% rule: 1.26%
• Cash to close: $77,000

Investor read

• This is a 4-bed/1.5-bath single-family listed at $275k.
• At list price, monthly cash flow is $979 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $275k).
• It's been on market 21 days — a 2% lower offer ($271k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $271k (1.5% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($2k loan paydown + $1k appreciation (0.4% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• 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: Kent Center School (math 62% / reading 77%, grade A-, #78 of 553 statewide, top 17%, 194 students, 25% 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 29% FRL track the district average.
• Watch-outs: built in 1935 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 26 active listings in the ZIP; 154 units permitted in Northwest Hills Planning Region in 2024 (6 in 5+ unit buildings).
• 3 sale attempts; this cycle's ask has dropped $75k (21%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $125k; list at $275k implies a 120% gain — meaningful room to come down on a strong offer.
• At projected returns (0.4% appreciation + 3.0% rent growth), your $77k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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.