23-27 West St

Ware, MA 01082

$565,900D

6 bd · 3.0 ba · 4,227 sqft · Built 1850 · MultiFamily · Active · 172 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,921/mo
• Mortgage (P&I): −$2,968
• Tax + insurance: −$591
• HOA: −$0
• Vac / Maint / Mgmt: −$1,033
• Net cashflow: $329/mo
• Annual: $3,943/yr
• Cap rate: 6.99%
• Cash-on-cash: 2.49%
• DSCR: 1.11
• 1% rule: 0.87%
• Cash to close: $158,452

Investor read

• This is a 3 × 2-bed/?-bath units multifamily listed at $566k.
• At list price, monthly cash flow is $329 ($4k/yr) — positive. Per door: $110/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $492k (13.0% below list).
• It's been on market 172 days — a 12% lower offer ($498k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $492k (13.0% 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 $17k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#227 in MA) — a working-class tenant base; expect higher turnover. Strengths: health & safety A+, housing A; Watch: crime D-, amenities F, commute F.
• Ware (rural): math 21% / reading 37% proficiency, ranked #257 of 302 in MA (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Stanley M Koziol Elementary School (math 8% / reading 37%, grade F, #753 of 938 statewide, top 81%, 379 students, 0% FRL); Ware Middle School (math 27% / reading 40%, grade F, #188 of 305 statewide, top 62%, 248 students, 0% FRL); Ware Junior/Senior High School (math 20% / reading 35%, grade F, #275 of 343 statewide, top 80%, 497 students, 0% FRL) — zoned schools average 0% FRL vs 46% district-wide (46 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1850 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 37 active listings in the ZIP; 349 units permitted in Hampshire County in 2024 (185 in 5+ unit buildings).
• Hampshire County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 20y ago; this cycle's ask has dropped $30k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $60k; list at $566k implies a 843% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.0% vs local median 3.8% in Ware — 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

• It's been on market 172 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• 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 1850 — 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 D 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?