118 Sherry Lane

This property stands out as a rare, direct waterfront opportunity on Candlewood Lake, positioned below typical lakefront price tiers and offering immediate guest appeal for short-term rental use. The high-confidence underwriting projects a strong cash-on-cash return, driven by a healthy ADR and occupancy assumption, making it attractive for investors seeking income-producing vacation assets. The home’s updated systems and flexible layout support operational efficiency, while the lakefront amenities and private community features enhance guest experience. The primary caveat is the need to confirm the property’s physical condition and ensure compliance with local STR regulations, as both could materially impact returns.

New Milford, CT, and the Candlewood Lake region are established vacation destinations with strong seasonal demand for waterfront rentals. This property’s direct lake access and private community amenities position it well for short-term rental strategies, especially given its competitive price point relative to typical lakefront inventory. The market supports premium ADRs for well-located, guest-ready homes, though performance is subject to regulatory and seasonal factors. Confidence in the income model is high, but investors should remain attentive to evolving local STR policies.

The property is situated in a private lakeside community with direct access to Candlewood Lake, a major draw for vacationers seeking water activities and scenic relaxation. The immediate area offers a blend of residential and recreational character, with amenities such as a sandy beach, swim dock, and kayak storage enhancing guest appeal. While detailed location-specific demand signals are limited, the combination of lakefront setting and community features suggests strong guest interest, though conclusions are moderate-confidence pending further diligence on neighborhood dynamics and STR acceptance.

At a $699,000 purchase price, underwriting projects a monthly expected income of $7,716 and cash flow of $2,289, with a 19.7% cash-on-cash return based on a 20% down payment, 25% expense ratio, and 6.4% interest rate. The model assumes a 56% occupancy rate and $453 ADR, both reasonable for a direct lakefront asset in this market. Expense and income assumptions are high-confidence, but returns remain sensitive to actual occupancy, ADR, and ongoing maintenance needs. The property’s income potential is compelling for investors seeking strong cash flow from a premium vacation rental, provided diligence confirms physical condition and regulatory compliance.