91 Chelsea St

Everett, MA 02149

$3,850,000D-

12 bd · 9.0 ba · 7,629 sqft · Built 1940 · MultiFamily · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $28,462/mo
• Mortgage (P&I): −$20,190
• Tax + insurance: −$3,505
• HOA: −$0
• Vac / Maint / Mgmt: −$5,977
• Net cashflow: $-1,210/mo
• Annual: $-14,515/yr
• Cap rate: 5.92%
• Cash-on-cash: -1.35%
• DSCR: 0.94
• 1% rule: 0.74%
• Cash to close: $1,078,000

Investor read

• This is a 12 × 1-bed/?-bath units multifamily listed at $3.85M.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative. Per door: $-101/mo.
• To cash-flow at today's rent, offer at most $3.64M (5.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.85M (26.1% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $2.85M (26.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $27k of loan paydown is wiped out by about $116k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#35 in MA, #1,665 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: cost of living F.
• Everett (suburban): math 15% / reading 26% proficiency, ranked #289 of 302 in MA (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.0%/yr); 45 active listings in the ZIP; solid renter incomes; 3,670 units permitted in Middlesex County in 2024 (2,611 in 5+ unit buildings).
• Middlesex County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wind risk, 67% 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 5.9% vs local median 3.6% in Everett — 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.
• At $28,462/mo this rent would consume 401% of the median local household income ($85k/yr) (locally 2888% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• 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?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.