50 Old Sawmill Rd

Lake Bungee, CT 06281

$398,000D+

3 bd · 2.5 ba · 1,632 sqft · Built 1968 · SingleFamily · Under Contract · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,500/mo
• Mortgage (P&I): −$2,087
• Tax + insurance: −$482
• HOA: −$0
• Vac / Maint / Mgmt: −$735
• Net cashflow: $196/mo
• Annual: $2,354/yr
• Cap rate: 6.88%
• Cash-on-cash: 2.11%
• DSCR: 1.09
• 1% rule: 0.88%
• Cash to close: $111,440

Investor read

• This is a 3-bed/2.5-bath single-family listed at $398k.
• At list price, monthly cash flow is $196 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $350k (12.1% below list).
• It's been on market 28 days — a 2% lower offer ($392k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $350k (12.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Woodstock School District (rural): math 32% / reading 55% proficiency, ranked #89 of 153 in CT (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 9% free/reduced lunch — higher-income household profile.
• Zoned schools: Woodstock Elementary School (math 42% / reading 52%, grade D-, #256 of 553 statewide, top 48%, 427 students, 21% FRL); Woodstock Middle School (math 28% / reading 56%, grade D-, #103 of 175 statewide, top 59%, 346 students, 20% FRL).
• Market conditions: 57 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 149 units permitted in Northeastern Connecticut Planning Region in 2024 (0 in 5+ unit buildings).
• Climate carrying-cost: major wind risk, 54% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1968 — 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.
• 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.
• 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.