56 Prospect St #56

Greenwich, CT 06830

$1,275,000D

3 bd · 2.5 ba · 2,128 sqft · Built 1876 · Condo · Active · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,954/mo
• Mortgage (P&I): −$6,686
• Tax + insurance: −$2,181
• HOA: −$0
• Vac / Maint / Mgmt: −$1,460
• Net cashflow: $-3,373/mo
• Annual: $-40,479/yr
• Cap rate: 3.17%
• Cash-on-cash: -11.15%
• DSCR: 0.50
• 1% rule: 0.55%
• Cash to close: $357,000

Investor read

• This is a 3-bed/2.5-bath condo listed at $1.27M.
• At list price, monthly cash flow is $-3k ($-40k/yr) — negative.
• To cash-flow at today's rent, offer at most $787k (38.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $695k (45.5% below list).
• It's been on market 68 days — a 6% lower offer ($1.20M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $695k (45.5% below list) — sets the bar for 1% rule.
• In year one you build about $97k of equity ($9k loan paydown + $88k appreciation (6.9% local appreciation)).
• Location reads 80/100 on livability (#23 in CT, #1,655 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, health & safety A+; Watch: amenities D, cost of living F.
• Greenwich School District (suburban): math 64% / reading 73% proficiency, ranked #12 of 153 in CT (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 11% free/reduced lunch — higher-income household profile.
• Zoned schools: Hamilton Avenue School (math 32% / reading 47%, grade F, #298 of 553 statewide, top 56%, 294 students, 56% FRL); Western Middle School (math 50% / reading 59%, grade B-, #67 of 175 statewide, top 39%, 617 students, 38% FRL); Greenwich High School (math 59% / reading 78%, grade B, #23 of 194 statewide, top 12%, 2,668 students, 20% FRL) — zoned schools average 38% FRL vs 11% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 54% at this address vs 68% district-wide (-14 pts) — the specific schools serving this property underperform the Greenwich School District average; the district grade overstates school quality for this exact location.
• Watch-outs: flood insurance adds $56/mo; built in 1876 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.4%/yr); 129 active listings in the ZIP; 35 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 1,151 units permitted in Western Connecticut Planning Region in 2024 (714 in 5+ unit buildings).
• 6 sale attempts since 6y ago; this cycle's ask has dropped $75k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $925k; 38% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$155k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk; major wind risk, 60% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.2% vs local median 0.7% in Greenwich — 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 68 days. Have you received any prior offers? Is the seller open to a 45% concession, seller financing, or rate buy-down credit?
• Built in 1876 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 A-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?