82 Main St

East Hampton, CT 06424

$3,900,000B-

594 bd · 429.0 ba · 16,973 sqft · Built 1905 · MultiFamily · Active · 43 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $48,400/mo
• Mortgage (P&I): −$20,452
• Tax + insurance: −$6,500
• HOA: −$0
• Vac / Maint / Mgmt: −$10,164
• Net cashflow: $11,284/mo
• Annual: $135,408/yr
• Cap rate: 9.76%
• Cash-on-cash: 12.40%
• DSCR: 1.55
• 1% rule: 1.24%
• Cash to close: $1,092,000

Investor read

• This is a 22 × 1-bed/1-bath units multifamily listed at $3.90M. Condition is rated good.
• At list price, monthly cash flow is $11k ($135k/yr) — positive. Per door: $513/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($48k rent vs $3.90M).
• It's been on market 43 days — a 3% lower offer ($3.78M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.78M (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $27k of loan paydown is wiped out by about $117k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#13 in CT, #1,301 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: amenities C-, commute F.
• East Hampton School District (town): math 43% / reading 59% proficiency, ranked #70 of 153 in CT (top 46%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1905 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 62 active listings in the ZIP; 278 units permitted in Lower Connecticut River Valley Planning Region in 2024 (89 in 5+ unit buildings).
• 8 sale attempts since 17y 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $1.09M cash investment doubles in ~10 years — after that, you're playing with house money.
• Cap rate 9.8% vs local median 2.0% in East Hampton — 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.

Questions for listing agent

• It's been on market 43 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 1905 — 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 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.