26 Preston Ln

Canaan, CT 06068

$1,799,000B-

4 bd · 3.5 ba · 3,480 sqft · Built 2025 · SingleFamily · Active · 193 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $25,000/mo
• Mortgage (P&I): −$9,434
• Tax + insurance: −$2,998
• HOA: −$42
• Vac / Maint / Mgmt: −$5,250
• Net cashflow: $7,276/mo
• Annual: $87,306/yr
• Cap rate: 11.15%
• Cash-on-cash: 17.33%
• DSCR: 1.77
• 1% rule: 1.39%
• Cash to close: $503,720

Investor read

• This is a 4-bed/3.5-bath single-family listed at $1.80M.
• At list price, monthly cash flow is $7k ($87k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($25k rent vs $1.80M).
• It's been on market 193 days — a 12% lower offer ($1.58M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.58M (12.0% below list) — sets the bar for market timing.
• In year one you build about $58k of equity ($12k loan paydown + $45k appreciation (2.5% local appreciation)).
• Location reads 62/100 on livability (#133 in CT) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A; Watch: amenities F, commute F, employment F.
• Salisbury School District (rural): math 60% / reading 80% proficiency, ranked #55 of 192 in CT (top 29%) — strong family-tenant draw, lease renewals of 3-5y typical; only 9% free/reduced lunch — higher-income household profile.
• Zoned schools: Salisbury Central School (math 62% / reading 77%, grade A-, #78 of 553 statewide, top 17%, 296 students, 18% FRL).
• Market conditions: 18 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 154 units permitted in Northwest Hills Planning Region in 2024 (6 in 5+ unit buildings).
• 2 sale attempts; this cycle's ask has dropped $601k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (2.5% appreciation + 3.0% rent growth), your $504k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$145k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 11.1% vs local median 1.7% in Canaan — 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 193 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.