2 Merrill Ave · Beverly, MA 01982

$55,000

1 bd · 1.0 ba · 488 sqft · SingleFamily public records · 80 Days on market

Built 1900 1,100 sqft lot $113/sqft · 82% below area $250/mo HOA · 14% of rent ↓ 11% since listing

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Why this score? — see what drove the B grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Schools +6.1/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

YEAR ROUND RESIDENCE IS NOT POSSIBLE. Embrace seasonal living in historic Asbury Grove! Relax on the screened front porch with rocking chair. Inside, find a cozy living room with comfy chairs, a kitchen with refrigerator, gas oven/burners, dining set, and hutch. Upstairs, a bedroom with full bed & closet. A small side room features built-in wooden bunk beds, and a bathroom offers a small shower and toilet. A private backyard provides a peaceful retreat. Asbury Grove (National Register, est. 1859) is a vibrant Christian community with chapel, choir, and recreation. Community amenities offered at Asbury Grove are: new playground, swimming pool, tennis court, library, ball field, and a coffee house. Larger community of Hamilton has abundant green space, shops, restaurants, and the commuter rail. Crane Beach is ten minutes away! BUYERS AND AGENTS: Please go to Asbury Grove's website for more information about the community guidelines. Transaction type: Bill of Sale for cottage.

Key facts

• 1,100 sq ft lot
• 2 parking spots
• Built 1900

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath single-family listed at $55k.

Deal economics

• At list price, monthly cash flow is $836 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $55k).
• Recommended offer: $52k (6.0% below list) — sets the bar for market timing.
• Cap rate 24.5% vs local median 1.6% in Beverly — 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.

Location & tenants

• Location reads 67/100 on livability (#158 in MA) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, schools B+; Watch: amenities F, commute F, cost of living F.
• Hamilton-Wenham (rural): math 56% / reading 76% proficiency, ranked #35 of 302 in MA (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Market conditions: 13 active listings in the ZIP; 1,032 units permitted in Essex County in 2024 (590 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $380 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• 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 $15k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 80 days — a 6% lower offer ($52k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $51,700 (6.0% below list)

Questions for the listing agent

1. It's been on market 80 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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.
8. 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.
9. 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.

Investment metrics

• 1% rule: 3.26% ✓
• Cap rate: 24.54%
• Cash-on-cash: 65.18%
• DSCR: 3.90
• GRM: 2.6

CMA / ARV

• ARV (median comp): $359,939
• List price: $55,000
• Delta: -84.72%
• Verdict: UNDERPRICED
• Comps: 3 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 64.5%
• Equity multiple: 3.89×
• Total profit: $44,513
• Equity at exit: $8,201

10-year hold

• IRR: 68.9%
• Equity multiple: 8.01×
• Total profit: $107,973
• Equity at exit: $4,755

Cash invested: $15,400 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 20 Strongly Tenant-Friendly
• State Massachusetts: 20 Strongly Tenant-Friendly · D+15
• County: — inherits STATE
• City: — inherits STATE

Cambridge / Boston historically rent-controlled (preempted 1994 but consideration ongoing); strong tenant protections; court backlogs.

Methodology + full state rankings →

ZIP-level market 01982

• Home prices YoY: -26.6%
• Active inventory: 13
• Price-to-rent: 2.6×

Monthly cashflow live

• Estimated rent: $1,795 medium
• Mortgage (P&I): −$288
• Tax from tax record: −$20 /mo · $242/yr
• Insurance: −$23
• HOA: −$250
• Vacancy / Maint / Mgmt: −$377
• Net cashflow: $836

Break-even live

Break-even rent $736

Max offer price $55,000

Occupancy floor 48%

Sensitivity live

Price	-10% $868	-5% $852	+0% $836	+5% $821	+10% $805
Rent	-10% $695	-5% $766	+0% $836	+5% $907	+10% $978
Rate	-1.0pp $864	-0.5pp $850	base $836	+0.5pp $822	+1.0pp $808

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $13,750
• Closing costs: $1,650
• Reserves months: —
• Total cash needed: —

HOA detail

• Monthly dues: $250 · $3,000/yr
• Likely covers: gaspool

Listing history 16 events

1. 2026-06-21
   days on market $55,000 Active 80 DOM
2. 2026-06-18
   days on market $55,000 Active 77 DOM
3. 2026-06-17
   days on market $55,000 Active 76 DOM
4. 2026-06-16
   days on market $55,000 Active 75 DOM
5. 2026-06-15
   days on market $55,000 Active 74 DOM
6. 2026-06-13
   days on market $55,000 Active 72 DOM
7. 2026-06-09
   days on market $55,000 Active 68 DOM
8. 2026-06-08
   days on market $55,000 Active 67 DOM
9. 2026-06-07
   days on market $55,000 Active 66 DOM
10. 2026-06-04
    days on market $55,000 Active 63 DOM
11. 2026-06-03
    days on market $55,000 Active 62 DOM
12. 2026-06-02
    days on market $55,000 Active 61 DOM
13. 2026-06-01
    days on market $55,000 Active 60 DOM
14. 2026-05-31
    days on market $55,000 Active 59 DOM
15. 2026-05-14
    price $55,000 993-char remark

    Show marketing remark (993 chars)

    YEAR ROUND RESIDENCE IS NOT POSSIBLE. Embrace seasonal living in historic Asbury Grove! Relax on the screened front porch with rocking chair. Inside, find a cozy living room with comfy chairs, a kitchen with refrigerator, gas oven/burners, dining set, and hutch. Upstairs, a bedroom with full bed & closet. A small side room features built-in wooden bunk beds, and a bathroom offers a small shower and toilet. A private backyard provides a peaceful retreat. Asbury Grove (National Register, est. 1859) is a vibrant Christian community with chapel, choir, and recreation. Community amenities offered at Asbury Grove are: new playground, swimming pool, tennis court, library, ball field, and a coffee house. Larger community of Hamilton has abundant green space, shops, restaurants, and the commuter rail. Crane Beach is ten minutes away! BUYERS AND AGENTS: Please go to Asbury Grove's website for more information about the community guidelines. Transaction type: Bill of Sale for cottage.

16. 2026-04-02
    listed $62,000 New 993-char remark

    Show marketing remark (993 chars)

    YEAR ROUND RESIDENCE IS NOT POSSIBLE. Embrace seasonal living in historic Asbury Grove! Relax on the screened front porch with rocking chair. Inside, find a cozy living room with comfy chairs, a kitchen with refrigerator, gas oven/burners, dining set, and hutch. Upstairs, a bedroom with full bed & closet. A small side room features built-in wooden bunk beds, and a bathroom offers a small shower and toilet. A private backyard provides a peaceful retreat. Asbury Grove (National Register, est. 1859) is a vibrant Christian community with chapel, choir, and recreation. Community amenities offered at Asbury Grove are: new playground, swimming pool, tennis court, library, ball field, and a coffee house. Larger community of Hamilton has abundant green space, shops, restaurants, and the commuter rail. Crane Beach is ten minutes away! BUYERS AND AGENTS: Please go to Asbury Grove's website for more information about the community guidelines. Transaction type: Bill of Sale for cottage.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MA · Partial reset (capped growth)

• Current annual tax: $242 · $20/mo
• Projected year-2 tax: $459 · $38/mo
• Expected delta: +$217/yr (+$18/mo · 89.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Taxation est. · year 1

• Rental income: $21,539
• − Mortgage interest: −$3,081
• − Property taxes: −$242
• − Insurance: −$275
• − Repairs & maintenance: −$1,723
• − Management: −$1,723
• − HOA: −$3,000
• − Depreciation: −$1,600
• Taxable income: $9,895
• Est. tax owed @ 24.0%: −$2,375
• After-tax cash flow: $7,663/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Hamilton-Wenham
• NCES district ID: 2505670
• Math proficiency: 56% ▼ -15.00%
• Reading proficiency: 76% ▬ 0.00%
• Median HH income: $106,684
• Composite: 61.39/100
• National rank: #766
• State rank: #35 of 302 in MA

Livability — Beverly

• Score: 67/100
• State rank: #158
• US rank: #10423

Category grades

Amenities F Commute F Cost of living F Crime A+ Employment A+ Housing B+ Health & safety F User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• City population: 41,994
• Population (ZIP): 7,646

Population outlook (Essex County) Hauer SSP2

• Today (2025): 840,920 people
• By 2030: 872,201 · +3.7%
• By 2040: 927,918 · +10.3%
• By 2050: 970,206 · +15.4%
• By 2075: 1,077,993 · +28.2%
• By 2100: 1,103,053 · +31.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (90%)
• Race & ethnicity: White 90% Asian 3% Black 3% Two or more races 2% Hispanic / Latino 2%
• Common ancestry: Slovak 5% Lithuanian 4% German 3%
• Foreign-born: 9% · China, Canada, South Korea
• Languages at home: 93% English-only · Chinese 3% Other Indo-European 1%

Political lean MEDSL · Essex

• 2024 margin: Strong D (+20.3) · D 59.2% · R 38.9% · Other 1.9%
• 2008→2024 swing: 0.0pp no change · 2008: 20.3pp · 2024: 20.3pp
• All cycles: 2024: D+20.3 2020: D+29.1 2016: D+22.5 2012: D+16.2 2008: D+20.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -98.10%
• Current HPI: 270.105
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.28%
• F500 in state: 38

Industry mix (Fortune 500 HQ in MA)

Industry	F500 HQs	Revenue
▸Technology	3	$17B
▸Insurance	2	$84B
▸Retail	2	$76B
▸Life Sciences	1	$43B
▸Energy Technology	1	$31B
▸Aerospace / Defense	1	$18B

Price history

-11.3% since first listed

2 events — show timeline

• 2026-05-14 Price Changed $55,000 MLS PIN
• 2026-04-02 Listed $62,000 MLS PIN

Property tax history

+3.0%/yr

Latest (2023): $242 · +7.6% YoY. Source: county tax records.