104 Lexington Rd

Colchester, VT 05446

$70,000B+

2 bd · 1.0 ba · 728 sqft · Built 1984 · Manufactured · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,120/mo
• Mortgage (P&I): −$367
• Tax + insurance: −$63
• HOA: −$542
• Vac / Maint / Mgmt: −$445
• Net cashflow: $703/mo
• Annual: $8,433/yr
• Cap rate: 18.34%
• Cash-on-cash: 43.02%
• DSCR: 2.91
• 1% rule: 3.03%
• Cash to close: $19,600

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $70k.
• At list price, monthly cash flow is $703 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $70k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $484 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Zoned schools: Malletts Bay School (math 52% / reading 58%, grade C, #30 of 192 statewide, top 15%, 483 students, 29% FRL); Colchester Middle School (math 34% / reading 52%, grade D-, #12 of 26 statewide, top 44%, 497 students, 27% FRL); Colchester High School (math 32% / reading 57%, grade F, #15 of 48 statewide, top 34%, 721 students, 22% FRL).
• Watch-outs: HOA is 26% of rent.
• Market conditions: 91 active listings in the ZIP; solid renter incomes; 898 units permitted in Chittenden County in 2024 (554 in 5+ unit buildings).
• Chittenden County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $22k; list at $70k implies a 218% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• 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.
• 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.