18 Alden Dr #18

Berlin, MA 01503

$400,000D

2 bd · 2.5 ba · 1,619 sqft · Built 2005 · Townhouse · Active · 52 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,983/mo
• Mortgage (P&I): −$2,098
• Tax + insurance: −$667
• HOA: −$810
• Vac / Maint / Mgmt: −$836
• Net cashflow: $-428/mo
• Annual: $-5,133/yr
• Cap rate: 5.01%
• Cash-on-cash: -4.58%
• DSCR: 0.80
• 1% rule: 1.00%
• Cash to close: $112,000

Investor read

• This is a 2-bed/2.5-bath townhouse listed at $400k. Condition is rated good.
• At list price, monthly cash flow is $-428 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $338k (15.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $398k (0.4% below list).
• It's been on market 52 days — a 3% lower offer ($388k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $338k (15.5% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Berlin-Boylston (rural): math 50% / reading 70% proficiency, ranked #60 of 302 in MA (top 20%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Tahanto Regional High (math 52% / reading 71%, grade B-, #126 of 343 statewide, top 37%, 515 students, 0% FRL).
• Watch-outs: HOA is 20% of rent.
• Market conditions: 11 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2,293 units permitted in Worcester County in 2024 (1,205 in 5+ unit buildings).

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 52 days. Have you received any prior offers? Is the seller open to a 15% 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.