956 Butternut Hill Rd Unit E4

Waitsfield, VT 05673

$189,000D

1 bd · 1.0 ba · 600 sqft · Built 1974 · Condo · Active · 284 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,061/mo
• Mortgage (P&I): −$991
• Tax + insurance: −$315
• HOA: −$883
• Vac / Maint / Mgmt: −$433
• Net cashflow: $-561/mo
• Annual: $-6,728/yr
• Cap rate: 2.73%
• Cash-on-cash: -12.71%
• DSCR: 0.43
• 1% rule: 1.09%
• Cash to close: $52,920

Investor read

• This is a 1-bed/1.0-bath condo listed at $189k. Condition is rated good.
• At list price, monthly cash flow is $-561 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $108k (42.9% below list).
• Meets the 1% rule at list price ($2k rent vs $189k).
• It's been on market 284 days — a 12% lower offer ($166k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $108k (42.9% below list) — sets the bar for cash-flow.
• In year one you build about $20k of equity ($1k loan paydown + $19k appreciation (10.0% local appreciation)).
• Location reads 68/100 on livability (#37 in VT) — a middle-class / working-renter tenant base. Strengths: crime A+, health & safety A, housing B; Watch: amenities F, commute F, employment F.
• Zoned schools: Crossett Brook Middle School (math 39% / reading 61%, grade C, #7 of 26 statewide, top 24%, 288 students, 14% FRL); Harwood Union Middle/High School (math 27% / reading 67%, grade D-, #10 of 48 statewide, top 28%, 556 students, 18% FRL).
• Watch-outs: HOA is 43% of rent.
• Market conditions: 21 active listings in the ZIP; 185 units permitted in Washington County in 2024 (30 in 5+ unit buildings).
• Washington County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 2, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 284 days. Have you received any prior offers? Is the seller open to a 43% concession, seller financing, or rate buy-down credit?
• Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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?