141 E High St

Lake Pocotopaug, CT 06424

$499,900D+

4 bd · 4.0 ba · 2,000 sqft · Built 1950 · MultiFamily · Under Contract · 145 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,107/mo
• Mortgage (P&I): −$2,622
• Tax + insurance: −$609
• HOA: −$0
• Vac / Maint / Mgmt: −$1,072
• Net cashflow: $804/mo
• Annual: $9,652/yr
• Cap rate: 8.22%
• Cash-on-cash: 6.90%
• DSCR: 1.31
• 1% rule: 1.02%
• Cash to close: $139,972

Investor read

• This is a 2 × 2-bed/2.0-bath units multifamily listed at $500k.
• At list price, monthly cash flow is $804 ($10k/yr) — positive. Per door: $402/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $500k).
• It's been on market 145 days — a 12% lower offer ($440k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $440k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#130 in CT) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, employment A-; Watch: cost of living C-, schools D, amenities 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 1950 — 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).
• 4 sale attempts since 16y ago; this cycle's ask is 21635% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $220k; list at $500k implies a 127% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 41% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 145 days. Have you received any prior offers? Is the seller open to a 12% 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 1950 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?