75 The Cmns #10

Waterbury, VT 05660

$225,000C-

1 bd · 1.0 ba · 608 sqft · Built 1973 · Condo · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,200/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$375
• HOA: −$226
• Vac / Maint / Mgmt: −$462
• Net cashflow: $-43/mo
• Annual: $-515/yr
• Cap rate: 6.06%
• Cash-on-cash: -0.82%
• DSCR: 0.96
• 1% rule: 0.98%
• Cash to close: $63,000

Investor read

• This is a 1-bed/1.0-bath condo listed at $225k. Condition is rated good.
• At list price, monthly cash flow is $-43 ($-515/yr) — negative.
• To cash-flow at today's rent, offer at most $219k (2.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $220k (2.2% below list).
• It's been on market 15 days — a 2% lower offer ($222k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $219k (2.8% below list) — sets the bar for cash-flow.
• In year one you build about $24k of equity ($2k loan paydown + $22k appreciation (10.0% local appreciation)).
• Location reads 66/100 on livability (#47 in VT) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A-, employment B; Watch: amenities F, commute F, health & safety D-.
• Zoned schools: Moretown Elementary School (math 54% / reading 64%, grade B-, #15 of 192 statewide, top 12%, 165 students, 28% FRL).
• Market conditions: 14 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 185 units permitted in Washington County in 2024 (30 in 5+ unit buildings).
• Washington County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $63k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.