44-46 Sherman St

Burlington, VT 05401

$659,000D+

4 bd · 4.0 ba · 2,976 sqft · Built 1899 · MultiFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,751/mo
• Mortgage (P&I): −$3,456
• Tax + insurance: −$1,098
• HOA: −$0
• Vac / Maint / Mgmt: −$1,208
• Net cashflow: $-11/mo
• Annual: $-131/yr
• Cap rate: 6.27%
• Cash-on-cash: -0.07%
• DSCR: 1.00
• 1% rule: 0.87%
• Cash to close: $184,520

Investor read

• This is a 2 × 2-bed/1-bath units multifamily listed at $659k. Condition is rated fair.
• At list price, monthly cash flow is $-11 ($-131/yr) — negative. Per door: $-5/mo.
• To cash-flow at today's rent, offer at most $657k (0.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $575k (12.7% below list).
• It's been on market 21 days — a 2% lower offer ($649k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $575k (12.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $20k 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+, schools B; Watch: cost of living D, crime F, amenities F.
• Watch-outs: built in 1899 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 137 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.
• Cap rate 6.3% vs local median 3.1% in Burlington — 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 $5,751/mo this rent would consume 105% of the median local household income ($66k/yr) (locally 2757% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?

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.