2390 Morse Brook Rd

Westminster, VT 05346

$83,200A-

3 bd · 1.0 ba · 1,414 sqft · Built 1965 · SingleFamily · Pending · 29 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,405/mo
• Mortgage (P&I): −$436
• Tax + insurance: −$300
• HOA: −$0
• Vac / Maint / Mgmt: −$295
• Net cashflow: $374/mo
• Annual: $4,484/yr
• Cap rate: 12.48%
• Cash-on-cash: 22.11%
• DSCR: 1.98
• 1% rule: 1.69%
• Cash to close: $23,296

Investor read

• This is a 3-bed/1.0-bath single-family listed at $83k.
• At list price, monthly cash flow is $374 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $83k).
• It's been on market 29 days — a 2% lower offer ($82k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $82k (1.5% below list) — sets the bar for market timing.
• In year one you build about $9k of equity ($575 loan paydown + $8k appreciation (10.0% local appreciation)).
• Location reads 65/100 on livability (#59 in VT) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime B; Watch: schools D+, health & safety D, amenities F.
• Watch-outs: property tax is 3.0% of price; flood insurance adds $56/mo.
• Market conditions: 19 active listings in the ZIP; 188 units permitted in Windham County in 2024 (0 in 5+ unit buildings).
• Windham County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $23k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• 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 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.