120 Sharon Valley Rd

Sharon, CT 06069

$525,000C+

4 bd · 1.5 ba · 1,440 sqft · Built 1970 · SingleFamily · Active · 65 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,290/mo
• Mortgage (P&I): −$2,753
• Tax + insurance: −$405
• HOA: −$0
• Vac / Maint / Mgmt: −$1,111
• Net cashflow: $1,021/mo
• Annual: $12,252/yr
• Cap rate: 8.63%
• Cash-on-cash: 8.33%
• DSCR: 1.37
• 1% rule: 1.01%
• Cash to close: $147,000

Investor read

• This is a 4-bed/1.5-bath single-family listed at $525k.
• At list price, monthly cash flow is $1k ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $525k).
• It's been on market 65 days — a 6% lower offer ($494k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $494k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-2.2%/yr); year-one equity from $4k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#141 in CT) — a working-class tenant base; expect higher turnover. Strengths: employment A+, crime A, cost of living B+; Watch: amenities F, commute D-, housing F.
• Sharon School District (rural): math 50% / reading 60% proficiency, ranked #110 of 192 in CT (top 57%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Market conditions: 36 active listings in the ZIP; 154 units permitted in Northwest Hills Planning Region in 2024 (6 in 5+ unit buildings).
• 4 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 $120k; list at $525k implies a 338% gain — meaningful room to come down on a strong offer.

Questions for listing agent

• It's been on market 65 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-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?
• 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.