110 Beaver St

Ansonia, CT 06401

$619,900C

9 bd · 3.0 ba · 3,060 sqft · Built 1900 · MultiFamily · Under Contract · 67 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,226/mo
• Mortgage (P&I): −$3,251
• Tax + insurance: −$766
• HOA: −$0
• Vac / Maint / Mgmt: −$1,307
• Net cashflow: $902/mo
• Annual: $10,827/yr
• Cap rate: 8.15%
• Cash-on-cash: 6.62%
• DSCR: 1.29
• 1% rule: 1.00%
• Cash to close: $173,572

Investor read

• This is a 3 × 3-bed/1.0-bath units multifamily listed at $620k.
• At list price, monthly cash flow is $902 ($11k/yr) — positive. Per door: $301/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $620k).
• It's been on market 67 days — a 6% lower offer ($583k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $583k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#87 in CT) — a middle-class / working-renter tenant base. Strengths: crime A+, health & safety A+, housing A-; Watch: employment C-, amenities F, commute F.
• Ansonia School District (suburban): math 13% / reading 25% proficiency, ranked #144 of 153 in CT (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Prendergast School (math 10% / reading 22%, grade F, #468 of 553 statewide, top 85%, 606 students, 67% FRL); Ansonia High School (math 22% / reading 37%, grade F, #139 of 194 statewide, top 74%, 555 students, 60% FRL).
• Watch-outs: flood insurance adds $56/mo; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+7.3%/yr); 51 active listings in the ZIP; solid renter incomes; 502 units permitted in Naugatuck Valley Planning Region in 2024 (171 in 5+ unit buildings).
• 3 sale attempts since 21y 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 $332k; list at $620k implies a 86% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 7.3% rent growth), your $174k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; 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.
• Cap rate 8.1% vs local median 3.5% in Ansonia — 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.
• At $6,226/mo this rent would consume 87% of the median local household income ($86k/yr) (locally 541% 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 67 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 1900 — 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?
• 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?