150 Williams #7

Chelsea, MA 02150

$325,000F

1 bd · 1.0 ba · 814 sqft · Built 2026 · Condo · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,728/mo
• Mortgage (P&I): −$1,704
• Tax + insurance: −$542
• HOA: −$344
• Vac / Maint / Mgmt: −$573
• Net cashflow: $-435/mo
• Annual: $-5,217/yr
• Cap rate: 4.69%
• Cash-on-cash: -5.73%
• DSCR: 0.74
• 1% rule: 0.84%
• Cash to close: $91,000

Investor read

• This is a 1-bed/1.0-bath condo listed at $325k. Condition is rated good.
• At list price, monthly cash flow is $-435 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $262k (19.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $273k (16.1% below list).
• It's been on market 60 days — a 3% lower offer ($315k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $262k (19.4% below list) — sets the bar for cash-flow.
• 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 73/100 on livability (#103 in MA) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A+; Watch: schools D+, crime F, cost of living F.
• Chelsea (suburban): math 12% / reading 24% proficiency, ranked #294 of 302 in MA (top 97%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 80% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+3.0%/yr); 57 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); 2,207 units permitted in Suffolk County in 2024 (1,961 in 5+ unit buildings).
• Suffolk County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.7% vs local median 3.5% in Chelsea — 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 $2,728/mo this rent would consume 45% of the median local household income ($72k/yr) (locally 3332% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 60 days. Have you received any prior offers? Is the seller open to a 19% 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?
• 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?
• 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?

Repairs flagged (vision-AI assessment)

• Minor: Kitchen countertops — The countertops appear unfinished and may need a final coat of finish.
• Minor: Bathroom flooring — The bathroom floor appears unfinished and may need a final coat of finish.
• Minor: Bathroom walls — The bathroom walls appear unfinished and may need a final coat of paint.