16-20 Lake St

Moosup, CT 06354

$419,900C

6 bd · 3.0 ba · 2,688 sqft · Built 1927 · MultiFamily · Under Contract · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,448/mo
• Mortgage (P&I): −$2,202
• Tax + insurance: −$755
• HOA: −$0
• Vac / Maint / Mgmt: −$934
• Net cashflow: $557/mo
• Annual: $6,679/yr
• Cap rate: 8.04%
• Cash-on-cash: 6.25%
• DSCR: 1.28
• 1% rule: 1.06%
• Cash to close: $117,572

Investor read

• This is a 3 × 2-bed/1.0-bath units multifamily listed at $420k. Condition is rated fair.
• At list price, monthly cash flow is $557 ($7k/yr) — positive. Per door: $186/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $420k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $41k of equity ($3k loan paydown + $39k appreciation (9.2% local appreciation)).
• Location reads 67/100 on livability (#113 in CT) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, cost of living A; Watch: employment D+, amenities F, commute F.
• Plainfield School District (town): math 24% / reading 41% proficiency, ranked #117 of 153 in CT (top 76%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $56/mo; built in 1927 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 27 active listings in the ZIP; 149 units permitted in Northeastern Connecticut Planning Region in 2024 (0 in 5+ unit buildings).
• 2 sale attempts since 2y 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.
• At projected returns (9.2% appreciation + 3.0% rent growth), your $118k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$67k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; major wind risk, 63% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1927 — 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?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Slight wear and tear.
• Minor: Bathroom fixtures — Slight wear and tear.
• Moderate: Roof — Signs of wear and potential leaks.
• Moderate: Exterior siding — Signs of wear and potential damage.
• Moderate: Decks and railings — Weathered and may need replacement.
• Moderate: Hardwood floors — Worn and need refinishing.