468 Salem St

Malden, MA 02148

$1,375,000D+

5 bd · 6.0 ba · 2,671 sqft · Built 1930 · MultiFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,132/mo
• Mortgage (P&I): −$7,211
• Tax + insurance: −$1,445
• HOA: −$0
• Vac / Maint / Mgmt: −$2,968
• Net cashflow: $2,509/mo
• Annual: $30,107/yr
• Cap rate: 8.48%
• Cash-on-cash: 7.82%
• DSCR: 1.35
• 1% rule: 1.03%
• Cash to close: $385,000

Investor read

• This is a 4 × 6-bed/4.0-bath units multifamily listed at $1.38M.
• At list price, monthly cash flow is $3k ($30k/yr) — positive. Per door: $627/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($14k rent vs $1.38M).
• It's been on market 20 days — a 2% lower offer ($1.35M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.35M (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $41k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#29 in MA, #1,360 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: cost of living F.
• Malden (suburban): math 26% / reading 42% proficiency, ranked #238 of 302 in MA (top 79%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Salemwood (math 15% / reading 32%, grade F, #745 of 938 statewide, top 80%, 1,024 students, 0% FRL); Malden High (math 44% / reading 56%, grade D+, #182 of 343 statewide, top 53%, 1,856 students, 0% FRL) — zoned schools average 0% FRL vs 54% district-wide (54 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.8%/yr); 52 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 4 sale attempts since 15y 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 $235k; list at $1.38M implies a 485% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 64% 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 8.5% vs local median 3.2% in Malden — 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 $14,132/mo this rent would consume 169% of the median local household income ($101k/yr) (locally 3600% 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 1930 — 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.
• 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?
• 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.