198 W Main St

Millbury, MA 01527

$674,900C

5 bd · 3.0 ba · 3,232 sqft · Built 1850 · MultiFamily · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,452/mo
• Mortgage (P&I): −$3,539
• Tax + insurance: −$795
• HOA: −$0
• Vac / Maint / Mgmt: −$1,565
• Net cashflow: $1,553/mo
• Annual: $18,639/yr
• Cap rate: 9.05%
• Cash-on-cash: 9.86%
• DSCR: 1.44
• 1% rule: 1.10%
• Cash to close: $188,972

Investor read

• This is a 1×4bd/3.0ba + 2×1bd/1.0ba units multifamily listed at $675k.
• At list price, monthly cash flow is $2k ($19k/yr) — positive. Per door: $518/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $675k).
• It's been on market 18 days — a 2% lower offer ($665k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $665k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Millbury (suburban): math 35% / reading 45% proficiency, ranked #191 of 302 in MA (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Elmwood Street (math 42% / reading 57%, grade D, #330 of 938 statewide, top 38%, 421 students, 0% FRL); Raymond E. Shaw Elementary (math 32% / reading 47%, grade F, #504 of 938 statewide, top 57%, 458 students, 0% FRL); Millbury Junior/Senior High (math 37% / reading 40%, grade F, #233 of 343 statewide, top 69%, 740 students, 0% FRL) — zoned schools average 0% FRL vs 22% district-wide (22 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1850 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 26 active listings in the ZIP; high-income renter base; 2,293 units permitted in Worcester County in 2024 (1,205 in 5+ unit buildings).
• 2 sale attempts since 6y 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 $395k; list at $675k implies a 71% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• At $7,452/mo this rent would consume 75% of the median local household income ($119k/yr) (locally 238% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• Built in 1850 — 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.
• 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.
• 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.