142 Cross St

Somerville, MA 02145

$849,900B-

9 bd · 7.5 ba · 5,735 sqft · Built 2025 · MultiFamily · Active · 241 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,696/mo
• Mortgage (P&I): −$4,457
• Tax + insurance: −$1,483
• HOA: −$0
• Vac / Maint / Mgmt: −$3,086
• Net cashflow: $5,670/mo
• Annual: $68,039/yr
• Cap rate: 14.39%
• Cash-on-cash: 28.93%
• DSCR: 2.29
• 1% rule: 1.73%
• Cash to close: $237,972

Investor read

• This is a 3 × 3.0-bed/2.5-bath units multifamily listed at $850k. Condition is rated poor.
• At list price, monthly cash flow is $6k ($68k/yr) — positive. Per door: $2k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($15k rent vs $850k).
• It's been on market 241 days — a 12% lower offer ($748k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $748k (12.0% 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 $25k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#18 in MA, #752 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living F.
• Somerville (suburban): math 26% / reading 43% proficiency, ranked #223 of 302 in MA (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents rising fast (+4.5%/yr); 80 active listings in the ZIP; 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.
• 6 sale attempts; this cycle's ask has dropped $100k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 4.5% rent growth), your $238k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; major wind risk, 63% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 14.4% vs local median 2.2% in Somerville — 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 $14,696/mo this rent would consume 143% of the median local household income ($124k/yr) (locally 1487% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 241 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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 B-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?

Repairs flagged (vision-AI assessment)

• Major: Roof — Damaged shingles and visible wear
• Major: Exterior Siding — Weathered brick facade, peeling paint
• Major: Interior Walls — Worn and dirty interior walls, peeling paint
• Major: Flooring — Worn and dirty interior flooring
• Major: Kitchen Appliances — Dirty and worn kitchen appliances and counters
• Major: Bathroom Fixtures — Dirty and worn bathroom fixtures and tiles