155 Water St #5

Lee, MA 01238

$34,900B

1 bd · None ba · 780 sqft · Built 1491 · Manufactured · Pending · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,350/mo
• Mortgage (P&I): −$183
• Tax + insurance: −$125
• HOA: −$0
• Vac / Maint / Mgmt: −$283
• Net cashflow: $759/mo
• Annual: $9,105/yr
• Cap rate: 34.67%
• Cash-on-cash: 101.33%
• DSCR: 5.51
• 1% rule: 3.87%
• Cash to close: $9,772

Investor read

• This is a 1-bed/?-bath manufactured listed at $35k. Condition is rated poor.
• At list price, monthly cash flow is $759 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $35k).
• It's been on market 19 days — a 2% lower offer ($34k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $34k (1.5% below list) — sets the bar for market timing.
• In year one you build about $292 of equity ($241 loan paydown + $51 appreciation (0.1% local appreciation)).
• Location reads 74/100 on livability (#88 in MA, #4,582 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, crime B+; Watch: cost of living C-, amenities F.
• Lee (town): math 31% / reading 47% proficiency, ranked #211 of 302 in MA (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lee Elementary (math 27% / reading 42%, grade F, #577 of 938 statewide, top 65%, 341 students, 0% FRL); Lee Middle/High School (math 37% / reading 57%, grade D-, #194 of 343 statewide, top 57%, 325 students, 0% FRL) — zoned schools average 0% FRL vs 28% district-wide (28 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: flood insurance adds $66/mo; built in 1491 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 39 active listings in the ZIP; 130 units permitted in Berkshire County in 2024 (10 in 5+ unit buildings).
• Berkshire County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (0.1% appreciation + 3.0% rent growth), your $10k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 34.7% vs local median 2.1% in Lee — 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.

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 1491 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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)

• Major: roof — The satellite image shows a metal roof in poor condition, and the listing mentions a new roof, but the satellite image suggests it may not be fully installed or in good condition.
• Major: exterior siding — The satellite image shows a mobile home with a metal roof, which appears to be in poor condition.
• Major: interior walls — The interior photos show exposed subflooring and framing, indicating that the interior walls have been removed or are in poor condition.
• Major: bathrooms — The interior photos show exposed subflooring and framing, indicating that the bathrooms have been removed or are in poor condition.
• Major: HVAC/mechanicals — The interior photos show exposed subflooring and framing, indicating that the HVAC and mechanical systems have been removed or are in poor condition.