3 Ledgewood Dr

Lakeside Woods, CT 06784

$899,000F

3 bd · 2.5 ba · 1,458 sqft · Built 1972 · SingleFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,770/mo
• Mortgage (P&I): −$4,714
• Tax + insurance: −$769
• HOA: −$128
• Vac / Maint / Mgmt: −$792
• Net cashflow: $-2,633/mo
• Annual: $-31,600/yr
• Cap rate: 2.78%
• Cash-on-cash: -12.55%
• DSCR: 0.44
• 1% rule: 0.42%
• Cash to close: $251,720

Investor read

• This is a 3-bed/2.5-bath single-family listed at $899k.
• At list price, monthly cash flow is $-3k ($-32k/yr) — negative.
• To cash-flow at today's rent, offer at most $434k (51.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $377k (58.1% below list).
• It's been on market 15 days — a 2% lower offer ($886k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $377k (58.1% below list) — sets the bar for 1% rule.
• In year one you build about $96k of equity ($6k loan paydown + $90k appreciation (10.0% local appreciation)).
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Sherman School District (rural): math 55% / reading 60% proficiency, ranked #87 of 192 in CT (top 45%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 5% free/reduced lunch — higher-income household profile.
• Zoned schools: Sherman School (math 57% / reading 67%, grade B, #137 of 553 statewide, top 28%, 264 students, 2% FRL) — zoned schools at 2% FRL track the district average.
• Market conditions: 43 active listings in the ZIP; 1,151 units permitted in Western Connecticut Planning Region in 2024 (714 in 5+ unit buildings).
• 7 sale attempts since 22y 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 $668k; 35% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$155k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Built in 1972 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.