3 Centerbrook Ct

Collinsville, CT 06001

$489,900F

2 bd · 3.5 ba · 1,562 sqft · Built 1998 · Condo · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,674/mo
• Mortgage (P&I): −$2,569
• Tax + insurance: −$921
• HOA: −$466
• Vac / Maint / Mgmt: −$561
• Net cashflow: $-1,844/mo
• Annual: $-22,123/yr
• Cap rate: 1.78%
• Cash-on-cash: -16.13%
• DSCR: 0.28
• 1% rule: 0.55%
• Cash to close: $137,172

Investor read

• This is a 2-bed/3.5-bath condo listed at $490k.
• At list price, monthly cash flow is $-2k ($-22k/yr) — negative.
• To cash-flow at today's rent, offer at most $172k (64.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $267k (45.4% below list).
• It's been on market 24 days — a 2% lower offer ($483k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $172k (64.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#28 in CT, #2,040 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Avon School District (suburban): math 64% / reading 77% proficiency, ranked #11 of 153 in CT (top 7%) — strong family-tenant draw, lease renewals of 3-5y typical; only 5% free/reduced lunch — higher-income household profile.
• Zoned schools: Roaring Brook School (math 67% / reading 77%, grade A-, #62 of 553 statewide, top 13%, 483 students, 8% FRL); Avon High School (math 72% / reading 88%, grade A, #6 of 194 statewide, top 3%, 923 students, 11% FRL) — zoned schools at 9% FRL track the district average.
• Market conditions: 112 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 weeks tenant-placement turnaround); 1,867 units permitted in Capitol Planning Region in 2024 (1,399 in 5+ unit buildings).
• Current owner paid $255k; list at $490k implies a 92% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.8% vs local median 2.6% in Collinsville — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• 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?
• 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.