1 Pigeon Hill Ct Unit C

Rockport, MA 01966

$888,800B-

3 bd · 3.0 ba · 1,848 sqft · Built 2004 · Condo · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,540/mo
• Mortgage (P&I): −$4,661
• Tax + insurance: −$890
• HOA: −$0
• Vac / Maint / Mgmt: −$2,633
• Net cashflow: $4,355/mo
• Annual: $52,264/yr
• Cap rate: 12.17%
• Cash-on-cash: 21.00%
• DSCR: 1.93
• 1% rule: 1.41%
• Cash to close: $248,864

Investor read

• This is a 3-bed/3.0-bath condo listed at $889k.
• At list price, monthly cash flow is $4k ($52k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($13k rent vs $889k).
• It's been on market 15 days — a 2% lower offer ($875k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $875k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $27k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#130 in MA) — a middle-class / working-renter tenant base. Strengths: crime A+, commute A+, employment A+; Watch: housing C-, amenities F, cost of living F.
• Rockport (suburban): math 32% / reading 51% proficiency, ranked #187 of 302 in MA (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Rockport Elementary (math 32% / reading 52%, grade F, #462 of 938 statewide, top 52%, 304 students, 0% FRL); Rockport Middle (math 27% / reading 47%, grade F, #162 of 305 statewide, top 55%, 195 students, 0% FRL); Rockport High (math 54% / reading 64%, grade C+, #131 of 343 statewide, top 41%, 231 students, 0% FRL).
• Market conditions: 29 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,032 units permitted in Essex County in 2024 (590 in 5+ unit buildings).
• Essex County population projected at +15% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 11y 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 $538k; list at $889k implies a 65% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $249k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 12.2% vs local median 2.0% in Rockport — 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.

Questions for listing agent

• 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-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?
• 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.