220 Martins Lndg #104

Wilmington, MA 01864

$445,000D

1 bd · 1.0 ba · 955 sqft · Built 2018 · Condo · Active · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,266/mo
• Mortgage (P&I): −$2,334
• Tax + insurance: −$623
• HOA: −$381
• Vac / Maint / Mgmt: −$476
• Net cashflow: $-1,548/mo
• Annual: $-18,572/yr
• Cap rate: 2.12%
• Cash-on-cash: -14.91%
• DSCR: 0.34
• 1% rule: 0.51%
• Cash to close: $124,600

Investor read

• This is a 1-bed/1.0-bath condo listed at $445k.
• At list price, monthly cash flow is $-2k ($-19k/yr) — negative.
• To cash-flow at today's rent, offer at most $172k (61.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $227k (49.1% below list).
• It's been on market 37 days — a 3% lower offer ($432k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $172k (61.4% below list) — sets the bar for cash-flow.
• In year one you build about $48k of equity ($3k loan paydown + $44k appreciation (10.0% local appreciation)).
• Location reads 69/100 on livability (#142 in MA) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: amenities F, commute F, cost of living F.
• North Reading (suburban): math 62% / reading 72% proficiency, ranked #31 of 302 in MA (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Zoned schools: J Turner Hood (math 62% / reading 72%, grade B+, #95 of 938 statewide, top 12%, 383 students, 0% FRL); North Reading Middle (math 59% / reading 67%, grade B+, #32 of 305 statewide, top 11%, 541 students, 0% FRL); North Reading High (math 67% / reading 82%, grade B+, #60 of 343 statewide, top 19%, 644 students, 0% FRL).
• Market conditions: 38 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 7d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 3,670 units permitted in Middlesex County in 2024 (2,611 in 5+ unit buildings).
• Middlesex County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $340k; 31% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$76k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 37 days. Have you received any prior offers? Is the seller open to a 61% 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.