5 Great Elm Rd #3

Sharon, CT 06069

$750,000B+

3 bd · 2.5 ba · 2,010 sqft · Built 1900 · Condo · Under Contract · 70 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $25,000/mo
• Mortgage (P&I): −$3,933
• Tax + insurance: −$1,250
• HOA: −$1,860
• Vac / Maint / Mgmt: −$5,250
• Net cashflow: $12,707/mo
• Annual: $152,483/yr
• Cap rate: 26.62%
• Cash-on-cash: 72.61%
• DSCR: 4.23
• 1% rule: 3.33%
• Cash to close: $210,000

Investor read

• This is a 3-bed/2.5-bath condo listed at $750k. Condition is rated excellent.
• At list price, monthly cash flow is $13k ($152k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($25k rent vs $750k).
• It's been on market 70 days — a 6% lower offer ($705k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $705k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-2.2%/yr); year-one equity from $5k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#141 in CT) — a working-class tenant base; expect higher turnover. Strengths: employment A+, crime A, cost of living B+; Watch: amenities F, commute D-, housing F.
• Sharon School District (rural): math 50% / reading 60% proficiency, ranked #110 of 192 in CT (top 57%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Sharon Center School (math 37% / reading 62%, grade D, #237 of 553 statewide, top 45%, 97 students, 41% FRL) — zoned schools average 41% FRL vs 18% district-wide (23 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 36 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).
• 8 sale attempts since 17y 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 $385k; list at $750k implies a 95% gain — meaningful room to come down on a strong offer.
• At projected returns (-2.2% appreciation + 3.0% rent growth), your $210k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 70 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?
• 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.