50 E Main St

Orange, MA 01364

$3,000,000C-

19 bd · 17.0 ba · 9,896 sqft · Built 1900 · MultiFamily · Active · 197 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $29,986/mo
• Mortgage (P&I): −$15,732
• Tax + insurance: −$2,102
• HOA: −$0
• Vac / Maint / Mgmt: −$6,297
• Net cashflow: $5,855/mo
• Annual: $70,255/yr
• Cap rate: 8.66%
• Cash-on-cash: 8.46%
• DSCR: 1.38
• 1% rule: 1.00%
• Cash to close: $840,000

Investor read

• This is a 17 × 19-bed/17.0-bath units multifamily listed at $3.00M.
• At list price, monthly cash flow is $6k ($70k/yr) — positive. Per door: $344/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $3.00M (0.0% below list).
• It's been on market 197 days — a 12% lower offer ($2.64M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.64M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $21k of loan paydown is wiped out by about $90k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#197 in MA) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living A-; Watch: employment C-, health & safety D, schools F.
• Ralph C Mahar (town): math 24% / reading 35% proficiency, ranked #258 of 302 in MA (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: flood insurance adds $66/mo; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 21 active listings in the ZIP; 89 units permitted in Franklin County in 2024 (22 in 5+ unit buildings).
• Franklin County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 11 sale attempts since 10y ago; this cycle's ask is 181718% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $1.50M; list at $3.00M implies a 100% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.7% vs local median 4.2% in Orange — 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

• It's been on market 197 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 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?