88 Pearl St

Brockton, MA 02072

$519,000D+

4 bd · 2.0 ba · 2,064 sqft · Built 1940 · SingleFamily · Active · 90 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,263/mo
• Mortgage (P&I): −$2,722
• Tax + insurance: −$668
• HOA: −$0
• Vac / Maint / Mgmt: −$895
• Net cashflow: $-22/mo
• Annual: $-260/yr
• Cap rate: 6.24%
• Cash-on-cash: -0.18%
• DSCR: 0.99
• 1% rule: 0.82%
• Cash to close: $145,320

Investor read

• This is a 4-bed/2.0-bath single-family listed at $519k.
• At list price, monthly cash flow is $-22 ($-260/yr) — negative.
• To cash-flow at today's rent, offer at most $515k (0.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $426k (17.9% below list).
• It's been on market 90 days — a 6% lower offer ($488k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $426k (17.9% 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 $16k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#90 in MA, #4,625 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, health & safety A+; Watch: crime F, amenities F, cost of living F.
• Stoughton (suburban): math 31% / reading 44% proficiency, ranked #208 of 302 in MA (top 69%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Richard L. Wilkins Elementary School (math 32% / reading 42%, grade F, #539 of 938 statewide, top 60%, 312 students, 0% FRL); O'Donnell Middle School (math 26% / reading 39%, grade F, #195 of 305 statewide, top 65%, 815 students, 0% FRL); Stoughton High (math 51% / reading 62%, grade C, #153 of 343 statewide, top 45%, 1,073 students, 0% FRL) — zoned schools average 0% FRL vs 27% district-wide (27 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.5%/yr); 40 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 958 units permitted in Norfolk County in 2024 (305 in 5+ unit buildings).
• Norfolk County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 7y ago; this cycle's ask has dropped $69k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $333k; list at $519k implies a 56% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 66% 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 6.2% vs local median 4.0% in Brockton — 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 $4,263/mo this rent would consume 49% of the median local household income ($105k/yr) (locally 1249% 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?
• It's been on market 90 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Built in 1940 — 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.
• 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?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?