735 Cape St · Lee, MA 01238

$179,000

3 bd · 1.0 ba · 1,172 sqft · SingleFamily public records · 55 Days on market

Built 1870 0.31 ac lot $153/sqft · at area comps Est $178k · at est.

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Why this score? — see what drove the C- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +18.4/30.0
• ARV discount +7.1/15.0
• DSCR +5.8/10.0
• Appreciation +5.1/10.0
• 1% rule +4.9/10.0
• Livability +3.7/5.0
• Schools +3.4/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

Great price for this charming three bedroom, one full bath single level home with detached garage and outbuilding. Many improvements made over the years, including vinyl windows, connection to town sewer, electrical service and breaker box, well, galvanized oil tank and furnace. Some TLC needed but a great starter home with amazing potential. Conveniently located just minutes to the center of Lee, Prime Outlets, and Turnpike. Please note that Cape Street is also Route 20 and the MASS Pike is nearby so you will hear traffic noise. Quaint and comfortable...a must see!

Key facts

• Vinyl windows
• Breaker box
• Outbuilding

Tags

• DETACHED GARAGE
• OUTBUILDING
• VINYL WINDOWS
• CONNECTION TO TOWN SEWER
• ELECTRICAL SERVICE
• BREAKER BOX

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $179k.

Deal economics

• At list price, monthly cash flow is $112 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $177k (1.1% below list).
• Recommended offer: $174k (3.0% below list) — sets the bar for market timing.
• Cap rate 7.4% vs local median 2.1% in Lee — 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.

Location & tenants

• Location reads 74/100 on livability (#88 in MA, #4,582 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, crime B+; Watch: cost of living C-, amenities F.
• Lee (town): math 31% / reading 47% proficiency, ranked #211 of 302 in MA (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 39 active listings in the ZIP; 130 units permitted in Berkshire County in 2024 (10 in 5+ unit buildings).

Forward outlook

• In year one you build about $1k of equity ($1k loan paydown + $261 appreciation (0.1% local appreciation)).
• Berkshire County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (0.1% appreciation + 3.0% rent growth), your $50k cash investment doubles in ~10 years — after that, you're playing with house money.

Negotiation context

• It's been on market 55 days — a 3% lower offer ($174k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: flood insurance adds $56/mo; built in 1870 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $173,630 (3.0% below list)

Questions for the listing agent

1. It's been on market 55 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1870 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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.
6. 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.
7. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 0.99% ✗
• Cap rate: 7.42%
• Cash-on-cash: 4.02%
• DSCR: 1.18
• GRM: 8.4

CMA / ARV

• ARV (median comp): $177,609
• List price: $179,000
• Delta: 0.78%
• Verdict: FAIR
• Comps: 2 within 1.0 mi

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1050 Cape St	0.60mi	3/2.0	1,300 (+11%)	9mo	$289,000	$222	42

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

0.15% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 1.3%
• Equity multiple: 1.06×
• Total profit: $3,205
• Equity at exit: $53,287

10-year hold

• IRR: 6.7%
• Equity multiple: 1.74×
• Total profit: $37,116
• Equity at exit: $65,108

Cash invested: $50,120 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 20 Strongly Tenant-Friendly
• State Massachusetts: 20 Strongly Tenant-Friendly · D+15
• County: — inherits STATE
• City: — inherits STATE

Cambridge / Boston historically rent-controlled (preempted 1994 but consideration ongoing); strong tenant protections; court backlogs.

Methodology + full state rankings →

ZIP-level market 01238

• Home prices YoY: 0.1%
• Active inventory: 39
• Price-to-rent: 8.4×

Monthly cashflow live

• Estimated rent: $1,771 medium
• Mortgage (P&I): −$939
• Tax from tax record: −$218 /mo · $2,611/yr
• Insurance: −$75
• Flood insurance flood zone: −$56 /mo · $666/yr
• HOA: −$0
• Vacancy / Maint / Mgmt: −$372
• Net cashflow: $112

Break-even live

Break-even rent $1,628

Max offer price $179,000

Occupancy floor 89%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $44,750
• Closing costs: $5,370
• Reserves months: —
• Total cash needed: —

Listing history 2 events

1. 2026-05-14
   status Pending 576-char remark

   Show marketing remark (576 chars)

   Great price for this charming three bedroom, one full bath single level home with detached garage and outbuilding. Many improvements made over the years, including vinyl windows, connection to town sewer, electrical service and breaker box, well, galvanized oil tank and furnace. Some TLC needed but a great starter home with amazing potential. Conveniently located just minutes to the center of Lee, Prime Outlets, and Turnpike. Please note that Cape Street is also Route 20 and the MASS Pike is nearby so you will hear traffic noise. Quaint and comfortable...a must see!

2. 2026-03-20
   listed $179,000 Active 576-char remark

   Show marketing remark (576 chars)

   Great price for this charming three bedroom, one full bath single level home with detached garage and outbuilding. Many improvements made over the years, including vinyl windows, connection to town sewer, electrical service and breaker box, well, galvanized oil tank and furnace. Some TLC needed but a great starter home with amazing potential. Conveniently located just minutes to the center of Lee, Prime Outlets, and Turnpike. Please note that Cape Street is also Route 20 and the MASS Pike is nearby so you will hear traffic noise. Quaint and comfortable...a must see!

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MA · Partial reset (capped growth)

• Current annual tax: $2,611 · $218/mo
• Projected year-2 tax: $2,611 · $218/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 8/10 Severe FEMA zone X · 99% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥89°F today · 17 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 13% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $21,246
• − Mortgage interest: −$10,027
• − Property taxes: −$2,611
• − Insurance: −$1,562
• − Repairs & maintenance: −$1,700
• − Management: −$1,700
• − Depreciation: −$5,207
• Taxable loss: −$1,560
• Est. tax savings @ 24.0%: +$374
• After-tax cash flow: $1,722/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Lee
• NCES district ID: 2506690
• Math proficiency: 31% ▼ -16.00%
• Reading proficiency: 47% ▼ -5.00%
• Median HH income: $58,112
• Composite: 34.38/100
• National rank: #5212
• State rank: #211 of 302 in MA

Livability — Lee

• Score: 74/100
• State rank: #88
• US rank: #4582

Category grades

Amenities F Commute C+ Cost of living C- Crime B+ Employment B- Housing A+ Health & safety A+ User ratings C-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Population (ZIP): 5,893

Population outlook (Berkshire County) Hauer SSP2

• Today (2025): 119,723 people
• By 2030: 114,608 · -4.3%
• By 2040: 102,806 · -14.1%
• By 2050: 91,305 · -23.7%
• By 2075: 71,517 · -40.3%
• By 2100: 57,988 · -51.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Two or more races 4% Hispanic / Latino 3% Asian 2%
• Common ancestry: Lithuanian 16% Romanian 6% Slovak 4%
• Foreign-born: 7% · Canada
• Languages at home: 94% English-only · Other Asian/Pacific 2% Spanish 2% Other Indo-European 2%

Political lean MEDSL · Berkshire

• 2024 margin: Solid D (+39.9) · D 68.9% · R 29.0% · Other 2.1%
• 2008→2024 swing: -12.5pp toward R · 2008: 52.4pp · 2024: 39.9pp
• All cycles: 2024: D+39.9 2020: D+47.1 2016: D+41.5 2012: D+53.7 2008: D+52.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 0.15%
• Current HPI: 294.592
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.28%
• F500 in state: 38

Industry mix (Fortune 500 HQ in MA)

Industry	F500 HQs	Revenue
▸Technology	3	$17B
▸Insurance	2	$84B
▸Retail	2	$76B
▸Life Sciences	1	$43B
▸Energy Technology	1	$31B
▸Aerospace / Defense	1	$18B

Price history

2 events — show timeline

• 2026-05-14 Pending — BCMLS
• 2026-03-20 Listed $179,000 BCMLS

Property tax history

+1.9%/yr

Latest (2023): $2,611 · +13.9% YoY. Source: county tax records.