41 Boston Rd #464

Lowell, MA 01862

$333,270D

2 bd · 1.5 ba · 1,092 sqft · Built 2013 · Condo · Active · 150 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,752/mo
• Mortgage (P&I): −$1,748
• Tax + insurance: −$432
• HOA: −$281
• Vac / Maint / Mgmt: −$578
• Net cashflow: $-287/mo
• Annual: $-3,444/yr
• Cap rate: 5.26%
• Cash-on-cash: -3.69%
• DSCR: 0.84
• 1% rule: 0.83%
• Cash to close: $93,316

Investor read

• This is a 2-bed/1.5-bath condo listed at $333k.
• At list price, monthly cash flow is $-287 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $283k (15.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $275k (17.4% below list).
• It's been on market 150 days — a 12% lower offer ($293k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $275k (17.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#36 in MA, #1,677 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: crime F, cost of living F.
• Billerica (suburban): math 36% / reading 51% proficiency, ranked #154 of 302 in MA (top 51%) — 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: Hajjar Elementary (math 47% / reading 57%, grade C-, #287 of 938 statewide, top 33%, 375 students, 0% FRL); Marshall Middle School (math 28% / reading 47%, grade F, #158 of 305 statewide, top 53%, 604 students, 0% FRL); Billerica Memorial High School (math 36% / reading 48%, grade F, #214 of 343 statewide, top 65%, 1,726 students, 0% FRL).
• Market conditions: 12 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals leasing fast (median 13d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 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.
• Current owner paid $170k; list at $333k implies a 96% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% 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 5.3% vs local median 2.9% in Lowell — 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

• 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?
• It's been on market 150 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• 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?
• 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 F 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?
• 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?