306 Old Colchester Rd #197 · Colchester, CT 06420

$135,000

2 bd · 1.0 ba · 750 sqft · Condo · 346 Days on market

Built 1991 $219/mo HOA · 11% of rent

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Why this score? — see what drove the B grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +29.5/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Schools +6.4/10.0
• Livability +3.9/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Seasonal Waterfront Community on Beautiful Gardner Lake. Updated Oakland Park Model on slab. Master Bedrm w/ queen bed, closet, drawers & overbed cabinets, new replacement window. Bunk room w/ closet, drawers & 2 new mattresses. Hall w/ Closet space. Open kitchen, living area & full bath w/ new chair height toilet. Kitchen has lots of cabinet space, 5 burner gas range, full size microwave & 25 cu ft refrigerator. Hardwd floors & 2 new ceiling fans. Insulated enclosed porch w/ new Minisplit Heat /AC, ceiling fans, Pergo floor, sliding entry door, 2 new end Pela windows & 2nd full refrigerator. Unit features new On Demand hot water heater, new roof A/C unit

Key facts

• $219 HOA
• 2 parking spots
• Built 1991

Property features AI

Finance

• Other: Pets allowed with restrictions (up to 2 dogs); Property managed by unit owners association; Total of 212 units in the community; Directions: Rt 354 is Old Colchester Rd. At #306 is a big Indian in a Canoe sign. Drive down dirt road to gate. Observe 5 MPH speed limit in campground.
• HOA & community: Homeowners association present; HOA dues billed annually; HOA includes lake/beach access, trash pickup, water, property management, and road maintenance; Community amenities include clubhouse, guest parking, park, playground/tot lot, basketball court, and bocce court

Exterior

• Parking: Paved driveway; 2 parking spaces
• Utilities: Shared well water; Tankless hot water; Propane fuel; Above-ground fuel tank
• Home design: Condo/Co-op (Co-Op); Seasonal property; Located in Indianfield Camping complex; White/blue exterior color; End unit
• Construction: Other construction type
• Exterior features: Vinyl siding; Level lot; Grill; Shed; Walk to water / beach rights / water community access

Interior

• Kitchen: Gas range; Microwave; Refrigerator
• Bedrooms: 2 bedrooms (single-level unit)
• Bathrooms: 1 full bathroom
• Heating & cooling: Central air; Ceiling fans; Split system cooling; Hot air heating; Wall unit heating; Propane-fueled heating; Above-ground fuel tank; Tankless hot water
• Interior features: Open floor plan; Cable available; No basement
• Laundry & utility: Coin-operated laundry; Common laundry area

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath condo listed at $135k.

Deal economics

• At list price, monthly cash flow is $483 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $135k).
• Recommended offer: $119k (12.0% below list) — sets the bar for market timing.
• Cap rate 10.6% vs local median 2.5% in Colchester — 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.

Location & tenants

• Location reads 77/100 on livability (#43 in CT, #3,018 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, crime A; Watch: amenities F, commute F.
• Salem School District (rural): math 64% / reading 76% proficiency, ranked #17 of 153 in CT (top 11%) — strong family-tenant draw, lease renewals of 3-5y typical; only 9% free/reduced lunch — higher-income household profile.
• Zoned schools: Salem Elementary School (math 65% / reading 77%, grade A-, #73 of 553 statewide, top 13%, 397 students, 19% FRL).
• Market conditions: 29 active listings in the ZIP; 487 units permitted in Southeastern Connecticut Planning Region in 2024 (244 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $933 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $38k cash investment doubles in ~8 years — after that, you're playing with house money.

Negotiation context

• It's been on market 346 days — a 12% lower offer ($119k) is reasonable based on typical stale-listing flexibility.

Recommended offer $118,800 (12.0% below list)

Questions for the listing agent

1. It's been on market 346 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
3. 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?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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.
8. 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.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.53% ✓
• Cap rate: 10.58%
• Cash-on-cash: 15.33%
• DSCR: 1.68
• GRM: 5.4

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 6.1%
• Equity multiple: 1.24×
• Total profit: $9,043
• Equity at exit: $20,129

10-year hold

• IRR: 15.6%
• Equity multiple: 2.27×
• Total profit: $48,148
• Equity at exit: $11,672

Cash invested: $37,800 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 27 Tenant-Leaning
• State Connecticut: 27 Tenant-Leaning · D+7
• County: — inherits STATE
• City: — inherits STATE

Strong tenant statutes; rent commissions in some towns; courts slow especially in cities.

Methodology + full state rankings →

ZIP-level market 06420

• Home prices YoY: -10.2%
• Active inventory: 29
• Price-to-rent: 5.4×

Monthly cashflow live

• Estimated rent: $2,069 medium
• Mortgage (P&I): −$708
• Tax est. 1.5%: −$169 /mo · $2,025/yr
• Insurance: −$56
• HOA: −$219
• Vacancy / Maint / Mgmt: −$435
• Net cashflow: $483

Break-even live

Break-even rent $1,458

Max offer price $135,000

Occupancy floor 72%

Sensitivity live

Price	-10% $576	-5% $530	+0% $483	+5% $436	+10% $390
Rent	-10% $319	-5% $401	+0% $483	+5% $565	+10% $646
Rate	-1.0pp $551	-0.5pp $517	base $483	+0.5pp $448	+1.0pp $412

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $33,750
• Closing costs: $4,050
• Reserves months: —
• Total cash needed: —

HOA detail condo

• Monthly dues: $219 · $2,628/yr
• Likely covers: watergas
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 11 events

1. 2026-06-09
   status $135,000 Under Contract 346 DOM
2. 2026-06-08
   days on market $135,000 Under Contract - Continue to Show 346 DOM
3. 2026-06-07
   days on market $135,000 Under Contract - Continue to Show 345 DOM
4. 2026-06-05
   days on market $135,000 Under Contract - Continue to Show 342 DOM
5. 2026-06-02
   days on market $135,000 Under Contract - Continue to Show 340 DOM
6. 2026-06-01
   days on market $135,000 Under Contract - Continue to Show 339 DOM
7. 2026-05-31
   days on market $135,000 Under Contract - Continue to Show 338 DOM
8. 2026-05-30
   days on market $135,000 Under Contract - Continue to Show 337 DOM
9. 2026-05-19
   historical Under Contract - Continue to Show
10. 2025-06-28
    listed $135,000 Active
11. 2025-06-24
    historical $135,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Taxation est. · year 1

• Rental income: $24,833
• − Mortgage interest: −$7,562
• − Property taxes: −$2,025
• − Insurance: −$675
• − Repairs & maintenance: −$1,987
• − Management: −$1,987
• − HOA: −$2,628
• − Depreciation: −$3,927
• Taxable income: $4,042
• Est. tax owed @ 24.0%: −$970
• After-tax cash flow: $4,824/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Salem School District
• NCES district ID: 0903900
• Math proficiency: 64% ▼ -7.00%
• Reading proficiency: 76% ▼ -1.00%
• Median HH income: $97,467
• Composite: 63.86/100
• National rank: #590
• State rank: #17 of 153 in CT

Livability — Colchester

• Score: 77/100
• State rank: #43
• US rank: #3018

Category grades

Amenities F Commute F Cost of living B- Crime A Employment B- Housing A+ Health & safety A+ User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Population (ZIP): 4,323

Population outlook (Southeastern Connecticut County) Hauer SSP2

• By 2040: 293,442

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (89%)
• Race & ethnicity: White 89% Hispanic / Latino 4% Two or more races 4% Black 1% Asian 1%
• Common ancestry: Romanian 7% Lithuanian 5% Russian 3%
• Foreign-born: 7% · Canada, China, Jamaica
• Languages at home: 93% English-only · Spanish 3% Other Indo-European 1% Other Asian/Pacific 1%

Political lean MEDSL · Southeastern Connecticut

• 2024 margin: D (+13.0) · D 55.6% · R 42.6% · Other 1.8%
• All cycles: 2024: D+13.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -31.50%
• Current HPI: 278.0717
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 1.06%
• F500 in state: 38

Industry mix (Fortune 500 HQ in CT)

Industry	F500 HQs	Revenue
▸Industrial Machinery	4	$38B
▸Insurance	3	$71B
▸Financial Services	2	$25B
▸Transportation / Logistics	2	$18B
▸Healthcare	1	$247B
▸Telecommunications	1	$55B

Price history

+0.0% since first listed

3 events — show timeline

• 2026-05-19 Contingent — Smart MLS
• 2025-06-28 Listed $135,000 Smart MLS
• 2025-06-24 Coming Soon $135,000 Smart MLS