16 Hall Ln

Gaylordsville, CT 06755

$529,000D

5 bd · 3.5 ba · 2,926 sqft · Built 1962 · SingleFamily · Under Contract · 47 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,162/mo
• Mortgage (P&I): −$2,774
• Tax + insurance: −$818
• HOA: −$0
• Vac / Maint / Mgmt: −$664
• Net cashflow: $-1,094/mo
• Annual: $-13,130/yr
• Cap rate: 3.81%
• Cash-on-cash: -8.86%
• DSCR: 0.61
• 1% rule: 0.60%
• Cash to close: $148,120

Investor read

• This is a 5-bed/3.5-bath single-family listed at $529k.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative.
• To cash-flow at today's rent, offer at most $336k (36.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $316k (40.2% below list).
• It's been on market 47 days — a 3% lower offer ($513k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $316k (40.2% below list) — sets the bar for 1% rule.
• In year one you build about $57k of equity ($4k loan paydown + $53k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• New Milford School District (suburban): math 29% / reading 47% proficiency, ranked #100 of 153 in CT (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Hill And Plain School (377 students, 47% FRL); Schaghticoke Middle School (math 28% / reading 47%, grade F, #112 of 175 statewide, top 66%, 811 students, 36% FRL); New Milford High School (math 33% / reading 62%, grade D, #91 of 194 statewide, top 47%, 1,247 students, 31% FRL) — zoned schools average 38% FRL vs 15% district-wide (23 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 9 active listings in the ZIP; 1,151 units permitted in Western Connecticut Planning Region in 2024 (714 in 5+ unit buildings).
• 4 sale attempts since 19y 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 $368k; 44% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$91k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.8% vs local median 2.8% in Gaylordsville — 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

• 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?
• It's been on market 47 days. Have you received any prior offers? Is the seller open to a 40% concession, seller financing, or rate buy-down credit?
• Built in 1962 — 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.