4 bd · 4.0 ba ·
2,782 sqft ·
Built 1920
· MultiFamily
· Pending
· 10 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$9,728/mo
Mortgage (P&I)
−$2,622
Tax + insurance
−$777
HOA
−$0
Vac / Maint / Mgmt
−$2,043
Net cashflow
$4,286/mo
Annual
$51,433/yr
Cap rate
16.58%
Cash-on-cash
36.74%
DSCR
2.63
1% rule
1.95%
Cash to close
$140,000
Investor read
This is a 4 × 5-bed/4.0-bath units multifamily listed at $500k.
At list price, monthly cash flow is $4k ($51k/yr) — positive. Per door: $1k/mo.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($10k rent vs $500k).
Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
Location reads 71/100 on livability (#16 in RI) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, cost of living B+; Watch: employment C-, schools D, amenities F.
Pawtucket (suburban): math 7% / reading 19% proficiency, ranked #33 of 39 in RI (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
Market conditions: Rents rising fast (+5.6%/yr); 95 active listings in the ZIP; solid renter incomes; 776 units permitted in Providence County in 2024 (229 in 5+ unit buildings).
Providence County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
4 sale attempts since 9y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
At projected returns (-3.0% appreciation + 5.6% rent growth), your $140k cash investment doubles in ~4 years — after that, you're playing with house money.
Climate carrying-cost: major wind risk, 70% 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 16.6% vs local median 3.8% in Pawtucket — 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 $9,728/mo this rent would consume 140% of the median local household income ($83k/yr) (locally 891% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.
Questions for listing agent
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?
Built in 1920 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.
CashFlowRE · CFR-CJ35CK7SRDF7ZD
· Data 3 weeks agocashflowre.app · 2026-05-29