1-23 Eastern Ave

Northampton, MA 01060

$2,950,000C+

24 bd · 12.0 ba · 25,532 sqft · Built 1880 · MultiFamily · Active · 128 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $34,236/mo
• Mortgage (P&I): −$15,470
• Tax + insurance: −$3,438
• HOA: −$0
• Vac / Maint / Mgmt: −$7,190
• Net cashflow: $8,138/mo
• Annual: $97,655/yr
• Cap rate: 9.60%
• Cash-on-cash: 11.82%
• DSCR: 1.53
• 1% rule: 1.16%
• Cash to close: $826,000

Investor read

• This is a 12 × 3-bed/1.0-bath units multifamily listed at $2.95M.
• At list price, monthly cash flow is $8k ($98k/yr) — positive. Per door: $678/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($34k rent vs $2.95M).
• It's been on market 128 days — a 12% lower offer ($2.60M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.60M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $20k of loan paydown is wiped out by about $88k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#49 in MA, #2,534 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, employment A; Watch: crime D+, amenities F, cost of living F.
• Northampton (suburban): math 36% / reading 53% proficiency, ranked #175 of 302 in MA (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1880 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.9%/yr); 41 active listings in the ZIP; solid renter incomes; 349 units permitted in Hampshire County in 2024 (185 in 5+ unit buildings).
• Hampshire County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 5.9% rent growth), your $826k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 9.6% vs local median 2.2% in Northampton — 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 $34,236/mo this rent would consume 535% of the median local household income ($77k/yr) (locally 1269% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 128 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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 1880 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.