311 Taconic Rd

Canaan, CT 06068

$595,000C+

3 bd · 2.5 ba · 1,790 sqft · Built 1735 · SingleFamily · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $25,000/mo
• Mortgage (P&I): −$3,120
• Tax + insurance: −$992
• HOA: −$0
• Vac / Maint / Mgmt: −$5,250
• Net cashflow: $15,638/mo
• Annual: $187,657/yr
• Cap rate: 37.83%
• Cash-on-cash: 112.64%
• DSCR: 6.01
• 1% rule: 4.20%
• Cash to close: $166,600

Investor read

• This is a 3-bed/2.5-bath single-family listed at $595k.
• At list price, monthly cash flow is $16k ($188k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($25k rent vs $595k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $19k of equity ($4k loan paydown + $15k appreciation (2.5% 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: schools C-, amenities F, commute F.
• Salisbury School District (rural): math 60% / reading 80% proficiency, ranked #55 of 192 in CT (top 29%) — strong family-tenant draw, lease renewals of 3-5y typical; only 9% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1735 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 18 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 154 units permitted in Northwest Hills Planning Region in 2024 (6 in 5+ unit buildings).
• At projected returns (2.5% appreciation + 3.0% rent growth), your $167k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$48k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 37.8% vs local median 1.7% 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

• Built in 1735 — 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.