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Cheshire Village, CT 06410

$198,900D

2 bd · 1.0 ba · 900 sqft · Built 1966 · Condo · Under Contract · 50 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,105/mo
• Mortgage (P&I): −$1,043
• Tax + insurance: −$246
• HOA: −$510
• Vac / Maint / Mgmt: −$442
• Net cashflow: $-137/mo
• Annual: $-1,643/yr
• Cap rate: 5.47%
• Cash-on-cash: -2.95%
• DSCR: 0.87
• 1% rule: 1.06%
• Cash to close: $55,692

Investor read

• This is a 2-bed/1.0-bath condo listed at $199k.
• At list price, monthly cash flow is $-137 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $175k (12.2% below list).
• Meets the 1% rule at list price ($2k rent vs $199k).
• It's been on market 50 days — a 3% lower offer ($193k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $175k (12.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#29 in CT, #2,087 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living D-.
• Cheshire School District (suburban): math 64% / reading 76% proficiency, ranked #15 of 153 in CT (top 10%) — strong family-tenant draw, lease renewals of 3-5y typical; only 6% free/reduced lunch — higher-income household profile.
• Zoned schools: Doolittle School (math 68% / reading 73%, grade A-, #75 of 553 statewide, top 14%, 518 students, 23% FRL); Dodd Middle School (math 61% / reading 73%, grade A-, #21 of 175 statewide, top 12%, 622 students, 16% FRL); Cheshire High School (math 46% / reading 73%, grade C+, #45 of 194 statewide, top 25%, 1,239 students, 16% FRL).
• Watch-outs: HOA is 24% of rent.
• Market conditions: 112 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 502 units permitted in Naugatuck Valley Planning Region in 2024 (171 in 5+ unit buildings).
• 6 sale attempts since 26y 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 $100k; list at $199k implies a 99% gain — meaningful room to come down on a strong offer.
• Cap rate 5.5% vs local median 2.3% in Cheshire Village — 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.
• This rent is only 17% of the median local income ($145k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 50 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1966 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?