2353 Massachusetts Ave #44

Cambridge, MA 02140

$515,000D

1 bd · 1.0 ba · 684 sqft · Built 1973 · Condo · Active · 102 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,814/mo
• Mortgage (P&I): −$2,701
• Tax + insurance: −$466
• HOA: −$421
• Vac / Maint / Mgmt: −$591
• Net cashflow: $-1,364/mo
• Annual: $-16,372/yr
• Cap rate: 3.11%
• Cash-on-cash: -11.35%
• DSCR: 0.49
• 1% rule: 0.55%
• Cash to close: $144,200

Investor read

• This is a 1-bed/1.0-bath condo listed at $515k.
• At list price, monthly cash flow is $-1k ($-16k/yr) — negative.
• To cash-flow at today's rent, offer at most $274k (46.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $281k (45.4% below list).
• It's been on market 102 days — a 9% lower offer ($469k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $274k (46.8% below list) — sets the bar for cash-flow.
• In year one you build about $30k of equity ($4k loan paydown + $27k appreciation (5.2% local appreciation)).
• Location reads 84/100 on livability (#15 in MA, #654 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Cambridge (urban): math 42% / reading 59% proficiency, ranked #117 of 302 in MA (top 39%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Amigos School (math 41% / reading 61%, grade C-, #315 of 938 statewide, top 34%, 407 students, 0% FRL); Cambridge Street Upper School (math 22% / reading 42%, grade F, #199 of 305 statewide, top 66%, 293 students, 0% FRL); Cambridge Rindge And Latin (math 61% / reading 69%, grade B, #108 of 343 statewide, top 32%, 1,867 students, 0% FRL) — zoned schools average 0% FRL vs 40% district-wide (40 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents soft (-1.1%/yr); 24 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• 3 sale attempts since 19y ago; this cycle's ask has dropped $35k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$49k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 58% 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 3.1% vs local median 1.8% in Cambridge — 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.

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 102 days. Have you received any prior offers? Is the seller open to a 47% concession, seller financing, or rate buy-down credit?
• Built in 1973 — 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 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?