226 Pequot Ave · Mystic, CT 06355

$460,000

2 bd · 1.5 ba · 1,528 sqft · SingleFamily public records · 4 Days on market

Built 1973 0.51 ac lot Est $781k · 41% under

---

Why this score? — see what drove the D+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Cash flow +14.1/30.0
• DSCR +4.3/10.0
• Livability +4.1/5.0
• Schools +3.6/10.0
• 1% rule +3.5/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Perfectly positioned in one of Mystic's most desirable and walkable locations, 226 Pequot Avenue offers charm, character, and endless potential, all while being less than a mile away from vibrant downtown. Set on a generous half-acre lot, this home features 2 bedrooms, 1.5 baths, and two main living areas, including one with a beautiful brick fireplace. The other living area opens up to a spacious deck looking over the backyard. The home features great natural light throughout and an opportunity for updates to truly make it your own. Enjoy easy access to Mystic's shops, restaurants, and waterfront all just minutes away. Don't miss out on a rare chance to own in a prime location on one of My

Key facts

• 0.51 acre lot
• Built 1973
• Listed 4 days

What this means for you Summary

Snapshot

• This is a 2-bed/1.5-bath single-family listed at $460k.

Deal economics

• At list price, monthly cash flow is $71 ($858/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 $392k (14.8% below list).
• Recommended offer: $392k (14.8% below list) — sets the bar for 1% rule.
• Cap rate 6.5% vs local median 1.7% in Mystic — 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.

Location & tenants

• Location reads 82/100 on livability (#11 in CT, #1,266 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: commute F, cost of living F.
• Groton School District (suburban): math 32% / reading 50% proficiency, ranked #96 of 153 in CT (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Northeast Academy Magnet School (math 42% / reading 62%, grade C-, #213 of 553 statewide, top 41%, 391 students, 27% FRL); Groton Middle School (math 28% / reading 47%, grade F, #112 of 175 statewide, top 66%, 907 students, 47% FRL); Robert E. Fitch High School (math 37% / reading 61%, grade D, #90 of 194 statewide, top 46%, 1,005 students, 43% FRL).
• Market conditions: 84 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 487 units permitted in Southeastern Connecticut Planning Region in 2024 (244 in 5+ unit buildings).
• This rent runs 34% of the median local income ($137k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.

Negotiation context

• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Current owner paid $100k; list at $460k implies a 360% gain — meaningful room to come down on a strong offer.

Recommended offer $391,818 (14.8% below list)

Questions for the listing agent

1. Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. 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?
5. 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.
6. 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.
7. 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.

Investment metrics

• 1% rule: 0.85% ✗
• Cap rate: 6.48%
• Cash-on-cash: 0.67%
• DSCR: 1.03
• GRM: 9.8

CMA / ARV

• ARV (on-the-fly): $780,808
• Comps found: 10

Show comp detail 10 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
226 Pequot Ave	0.00mi	2/1.5	1,528 (0%)	1mo	$547,500	$358	99
42 Clift Ln	0.28mi	3/1.0 (+1)	1,525 (-0%)	3mo	$616,000	$404	77
9 Grove Ave	0.37mi	3/3.0 (+1)	1,547 (+1%)	8mo	$790,000	$511	63
239 High St	0.35mi	3/1.5 (+1)	1,591 (+4%)	12mo	$835,000	$525	62
439 Pequot Ave	0.40mi	3/1.5 (+1)	1,675 (+10%)	2mo	$752,035	$449	58
245 High St	0.34mi	3/2.0 (+1)	1,330 (-13%)	5mo	$940,000	$707	51
10 Bank St	0.53mi	3/3.0 (+1)	1,465 (-4%)	11mo	$1,150,000	$785	48
18 Elm St	0.51mi	3/1.5 (+1)	1,411 (-8%)	12mo	$850,000	$602	48
137 High St	0.53mi	3/1.5 (+1)	1,584 (+4%)	23mo	$655,000	$414	45
4 Bindloss Rd	0.65mi	3/2.0 (+1)	1,728 (+13%)	8mo	$500,000	$289	34

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -15.2%
• Equity multiple: 0.46×
• Total profit: $-70,023
• Equity at exit: $68,587

10-year hold

• IRR: -6.7%
• Equity multiple: 0.57×
• Total profit: $-55,259
• Equity at exit: $39,772

Cash invested: $128,800 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 27 Tenant-Leaning
• State Connecticut: 27 Tenant-Leaning · D+7
• County: — inherits STATE
• City: — inherits STATE

Strong tenant statutes; rent commissions in some towns; courts slow especially in cities.

Methodology + full state rankings →

ZIP-level market 06355

• Home prices YoY: -17.8%
• Active inventory: 84
• Price-to-rent: 9.8×

Monthly cashflow live

• Estimated rent: $3,918 high
• Mortgage (P&I): −$2,412
• Tax from tax record: −$420 /mo · $5,039/yr
• Insurance: −$192
• HOA: −$0
• Vacancy / Maint / Mgmt: −$823
• Net cashflow: $71

Break-even live

Break-even rent $3,828

Max offer price $460,000

Occupancy floor 93%

Sensitivity live

Price	-10% $332	-5% $202	+0% $71	+5% $-59	+10% $-189
Rent	-10% $-238	-5% $-83	+0% $71	+5% $226	+10% $381
Rate	-1.0pp $303	-0.5pp $188	base $71	+0.5pp $-48	+1.0pp $-169

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $115,000
• Closing costs: $13,800
• Reserves months: —
• Total cash needed: —

Rent comps 10 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3 Pearl St Apt A Mystic, CT	2.0	1.0	1200	$3,250	$2.71	45d	1	0.57mi
12 Water St Mystic, CT	1.0–2.0	1.0–2.0	912	$2,800	$3.07	15d	3	0.63mi
12 Water St Unit 408 Mystic, CT	2.0	1.0	1075	$2,800	$2.60	23d	1	0.65mi
54 High St Mystic, CT	3.0	2.5	1826	$3,800	$2.08	45d	1	0.68mi
5 Ashby St Mystic, CT	3.0	2.0	1842	$8,000	$4.34	45d	1	0.80mi
99 Bay View Ave Mystic, CT	3.0	2.0	1668	$8,500	$5.10	45d	1	0.83mi
308 Noank Ledyard Rd Mystic, CT	3.0	2.0	1500	$3,500	$2.33	15d	1	0.91mi
22 School St Mystic, CT	3.0	2.0	1584	$4,500	$2.84	23d	1	0.96mi
2 Lincoln Ave Unit 2 Mystic, CT	2.0	1.0	1500	$2,500	$1.67	15d	1	1.06mi
98 Oslo St Mystic, CT	3.0	1.0	1152	$2,900	$2.52	13d	1	1.39mi

Listing history 4 events

1. 2026-04-20
   status Under Contract
2. 2026-04-17
   listed $460,000 Active
3. 2026-04-14
   historical $460,000
4. 2005-06-29
   soldstatus $100,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CT · Partial reset (capped growth)

• Current annual tax: $5,039 · $420/mo
• Projected year-2 tax: $7,442 · $620/mo
• Expected delta: +$2,402/yr (+$200/mo · 47.7%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Taxation est. · year 1

• Rental income: $47,018
• − Mortgage interest: −$25,767
• − Property taxes: −$5,039
• − Insurance: −$2,300
• − Repairs & maintenance: −$3,761
• − Management: −$3,761
• − Depreciation: −$13,382
• Taxable loss: −$6,993
• Est. tax savings @ 24.0%: +$1,678
• After-tax cash flow: $2,536/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Groton School District
• NCES district ID: 0901770
• Math proficiency: 32% ▼ -16.00%
• Reading proficiency: 50% ▼ -10.00%
• Median HH income: $60,709
• Composite: 36.28/100
• National rank: #4702
• State rank: #96 of 153 in CT

Livability — Mystic

• Score: 82/100
• State rank: #11
• US rank: #1266

Category grades

Amenities B+ Commute F Cost of living F Crime A+ Employment A+ Housing A+ Health & safety A+ User ratings A-

Schools grade is shown separately in the Schools card above.

Census & demographics

• County: New London County · 147,197 people
• Metro: Norwich-New London, CT
• Population (ZIP): 12,173
• Household income: $137,425
• Rent vs Own: 19.0% rent · 81.0% own
• Severe rent burden: 197.0

Population outlook (Southeastern Connecticut County) Hauer SSP2

• By 2040: 293,442

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (83%)
• Race & ethnicity: White 83% Two or more races 9% Asian 4% Hispanic / Latino 2% Black 2%
• Common ancestry: Lithuanian 6% Romanian 6% Slovak 5%
• Foreign-born: 7% · Canada, China
• Languages at home: 94% English-only · Other Indo-European 2% Spanish 1% French/Haitian/Cajun 1%

Political lean MEDSL · Southeastern Connecticut

• 2024 margin: D (+13.0) · D 55.6% · R 42.6% · Other 1.8%
• All cycles: 2024: D+13.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -62.46%
• Current HPI: 287.7568
• Rent YoY: —
• Metro: Norwich-New London, CT
• State GDP YoY: ▲ 1.06%
• F500 in state: 38

Industry mix (Fortune 500 HQ in CT)

Industry	F500 HQs	Revenue
▸Industrial Machinery	4	$38B
▸Insurance	3	$71B
▸Financial Services	2	$25B
▸Transportation / Logistics	2	$18B
▸Healthcare	1	$247B
▸Telecommunications	1	$55B

Price history

+360.0% since first listed

4 events — show timeline

• 2026-04-20 Pending — Smart MLS
• 2026-04-17 Listed $460,000 Smart MLS
• 2026-04-14 Coming Soon $460,000 Smart MLS
• 2005-06-29 Sold (Public Records) $100,000 Public Records

Property tax history

+1.4%/yr

Latest (2022): $5,039 · +29.8% YoY. Source: county tax records.