54 Buckingham St

Oakville, CT 06779

$255,500D

2 bd · 1.0 ba · 528 sqft · Built 1890 · SingleFamily · Active · 172 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,000/mo
• Mortgage (P&I): −$1,340
• Tax + insurance: −$307
• HOA: −$0
• Vac / Maint / Mgmt: −$420
• Net cashflow: $-67/mo
• Annual: $-803/yr
• Cap rate: 5.98%
• Cash-on-cash: -1.12%
• DSCR: 0.95
• 1% rule: 0.78%
• Cash to close: $71,540

Investor read

• This is a 2-bed/1.0-bath single-family listed at $256k.
• At list price, monthly cash flow is $-67 ($-803/yr) — negative.
• To cash-flow at today's rent, offer at most $244k (4.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $200k (21.7% below list).
• It's been on market 172 days — a 12% lower offer ($225k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $200k (21.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#94 in CT) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: amenities F, commute F.
• Watertown School District (suburban): math 36% / reading 56% proficiency, ranked #84 of 153 in CT (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: John Trumbull Primary School (639 students, 37% FRL); Swift Middle School (math 32% / reading 57%, grade D, #93 of 175 statewide, top 54%, 584 students, 37% FRL); Watertown High School (math 22% / reading 57%, grade F, #107 of 194 statewide, top 56%, 735 students, 34% FRL) — zoned schools average 36% FRL vs 18% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 17 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 502 units permitted in Naugatuck Valley Planning Region in 2024 (171 in 5+ unit buildings).
• 8 sale attempts since 3y ago; this cycle's ask has dropped $29k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 1.9% in Oakville — 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 172 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• Built in 1890 — 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?
• 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.