154 Newbury St #26

Peabody, MA 01960

$199,900B

3 bd · 1.0 ba · 952 sqft · Built 1972 · Manufactured · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,711/mo
• Mortgage (P&I): −$1,048
• Tax + insurance: −$333
• HOA: −$275
• Vac / Maint / Mgmt: −$779
• Net cashflow: $1,275/mo
• Annual: $15,303/yr
• Cap rate: 13.95%
• Cash-on-cash: 27.34%
• DSCR: 2.22
• 1% rule: 1.86%
• Cash to close: $55,972

Investor read

• This is a 3-bed/1.0-bath manufactured listed at $200k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($15k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $200k).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#44 in MA, #2,070 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A+, health & safety A+; Watch: amenities D+, cost of living F.
• Peabody (suburban): math 29% / reading 40% proficiency, ranked #233 of 302 in MA (top 77%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: John E. Mccarthy (math 37% / reading 52%, grade F, #421 of 938 statewide, top 48%, 338 students, 0% FRL); Peabody Veterans Memorial High (math 46% / reading 59%, grade C-, #173 of 343 statewide, top 51%, 1,476 students, 0% FRL) — zoned schools average 0% FRL vs 30% district-wide (30 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 48% at this address vs 34% district-wide (+14 pts) — the actual schools serving this property are materially stronger than the Peabody average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents soft (-0.9%/yr); 40 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 2d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,032 units permitted in Essex County in 2024 (590 in 5+ unit buildings).
• 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 + 0.0% rent growth), your $56k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 64% 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 13.9% vs local median 3.4% in Peabody — 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 $3,711/mo this rent would consume 46% of the median local household income ($97k/yr) (locally 2570% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1972 — 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?
• 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.

Repairs flagged (vision-AI assessment)

• Moderate: Kitchen cabinets — Worn and outdated appearance.
• Moderate: Appliances — Old and possibly inefficient models.
• Moderate: Countertops — Cluttered and worn appearance.
• Moderate: Bathroom fixtures — Outdated and possibly leaking fixtures.