239 Granite St

Gloucester, MA 01966

$899,000B+

3 bd · 2.5 ba · 2,066 sqft · Built 1942 · SingleFamily · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,438/mo
• Mortgage (P&I): −$4,714
• Tax + insurance: −$859
• HOA: −$0
• Vac / Maint / Mgmt: −$2,612
• Net cashflow: $4,253/mo
• Annual: $51,032/yr
• Cap rate: 11.97%
• Cash-on-cash: 20.27%
• DSCR: 1.90
• 1% rule: 1.38%
• Cash to close: $251,720

Investor read

• This is a 3-bed/2.5-bath single-family listed at $899k.
• At list price, monthly cash flow is $4k ($51k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $899k).
• It's been on market 18 days — a 2% lower offer ($886k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $886k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $27k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#119 in MA) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A, crime B+; Watch: amenities F, cost of living F.
• Rockport (suburban): math 32% / reading 51% proficiency, ranked #187 of 302 in MA (top 62%) — 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: Rockport Elementary (math 32% / reading 52%, grade F, #462 of 938 statewide, top 52%, 304 students, 0% FRL); Rockport Middle (math 27% / reading 47%, grade F, #162 of 305 statewide, top 55%, 195 students, 0% FRL); Rockport High (math 54% / reading 64%, grade C+, #131 of 343 statewide, top 41%, 231 students, 0% FRL).
• Watch-outs: built in 1942 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 28 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,032 units permitted in Essex County in 2024 (590 in 5+ unit buildings).
• Essex County population projected at +15% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $252k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 8→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 12.0% vs local median 2.4% in Gloucester — 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

• Built in 1942 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.
• 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.