155 Sylvan Ave

Waterbury, CT 06706

$419,900C

6 bd · 3.0 ba · 3,896 sqft · Built 1924 · MultiFamily · Under Contract · 36 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,962/mo
• Mortgage (P&I): −$2,202
• Tax + insurance: −$997
• HOA: −$0
• Vac / Maint / Mgmt: −$1,042
• Net cashflow: $721/mo
• Annual: $8,646/yr
• Cap rate: 8.35%
• Cash-on-cash: 7.35%
• DSCR: 1.33
• 1% rule: 1.18%
• Cash to close: $117,572

Investor read

• This is a 3 × 2-bed/1.0-bath units multifamily listed at $420k.
• At list price, monthly cash flow is $721 ($9k/yr) — positive. Per door: $240/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $420k).
• It's been on market 36 days — a 3% lower offer ($407k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $407k (3.0% below list) — sets the bar for market timing.
• In year one you build about $9k of equity ($3k loan paydown + $6k appreciation (1.4% local appreciation)).
• Location reads 79/100 on livability (#32 in CT, #2,205 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: crime D, employment D.
• Waterbury School District (suburban): math 12% / reading 23% proficiency, ranked #148 of 153 in CT (top 97%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 73% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Wendell L. Cross School (math 17% / reading 32%, grade F, #424 of 553 statewide, top 78%, 551 students, 66% FRL); Michael F. Wallace Middle School (math 13% / reading 28%, grade F, #160 of 175 statewide, top 91%, 1,062 students, 86% FRL); Crosby High School (math 2% / reading 17%, grade F, #187 of 194 statewide, top 96%, 1,400 students, 84% FRL).
• Watch-outs: built in 1924 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 43 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 502 units permitted in Naugatuck Valley Planning Region in 2024 (171 in 5+ unit buildings).
• At projected returns (1.4% appreciation + 3.0% rent growth), your $118k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.4% vs local median 3.5% in Waterbury — 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 $4,962/mo this rent would consume 114% of the median local household income ($52k/yr) (locally 801% 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 36 days. Have you received any prior offers? Is the seller open to a 3% 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 1924 — 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.