44-46 Sherman St

Burlington, VT 05401

$639,000F

4 bd · 4.0 ba · 2,976 sqft · Built 1899 · MultiFamily · Active · 118 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,700/mo
• Mortgage (P&I): −$3,351
• Tax + insurance: −$1,065
• HOA: −$0
• Vac / Maint / Mgmt: −$777
• Net cashflow: $-1,493/mo
• Annual: $-17,916/yr
• Cap rate: 3.49%
• Cash-on-cash: -10.01%
• DSCR: 0.55
• 1% rule: 0.58%
• Cash to close: $178,920

Investor read

• This is a 2 × 2-bed/1-bath units multifamily listed at $639k. Condition is rated fair.
• At list price, monthly cash flow is $-1k ($-18k/yr) — negative. Per door: $-746/mo.
• To cash-flow at today's rent, offer at most $423k (33.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $370k (42.1% below list).
• It's been on market 118 days — a 9% lower offer ($581k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $370k (42.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#19 in VT, #4,619 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, employment B; Watch: cost of living D, crime F, amenities F.
• Zoned schools: Sustainability Academy At Lawrence Barnes (math 22% / reading 42%, grade F, #129 of 192 statewide, top 70%, 191 students, 65% FRL); Edmunds Middle School (math 42% / reading 57%, grade C, #8 of 26 statewide, top 32%, 365 students, 50% FRL); Burlington High School (math 42% / reading 57%, grade D, #8 of 48 statewide, top 15%, 987 students, 48% FRL).
• Watch-outs: built in 1899 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 216 active listings in the ZIP; 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.
• This rent per unit runs 34% of the median local income ($66k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 118 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1899 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.

Repairs flagged (vision-AI assessment)

• Moderate: Kitchen cabinets — The cabinets are dated and need updating.
• Moderate: Bathroom fixtures — The fixtures appear outdated and need replacement.
• Moderate: Exterior siding — The siding is weathered and may need repainting or replacement.
• Moderate: Landscaping — The landscaping is overgrown and needs trimming and maintenance.