8 Everett St

Somerville, MA 02143

$2,400,000C

9 bd · 6.0 ba · 6,755 sqft · Built 1910 · MultiFamily · Active · 370 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $23,217/mo
• Mortgage (P&I): −$12,586
• Tax + insurance: −$3,206
• HOA: −$0
• Vac / Maint / Mgmt: −$4,876
• Net cashflow: $2,550/mo
• Annual: $30,599/yr
• Cap rate: 7.57%
• Cash-on-cash: 4.55%
• DSCR: 1.20
• 1% rule: 0.97%
• Cash to close: $672,000

Investor read

• This is a 5×3bd/1ba + 1×4bd/1ba units multifamily listed at $2.40M.
• At list price, monthly cash flow is $3k ($31k/yr) — positive. Per door: $425/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 $2.32M (3.3% below list).
• It's been on market 370 days — a 12% lower offer ($2.11M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.11M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $17k of loan paydown is wiped out by about $72k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#18 in MA, #752 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living F.
• Somerville (suburban): math 26% / reading 43% proficiency, ranked #223 of 302 in MA (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: E Somerville Community (math 15% / reading 35%, grade F, #716 of 938 statewide, top 77%, 729 students, 0% FRL); Next Wave Junior High (math 24% / reading 24%, 15 students, 0% FRL); Somerville High (math 43% / reading 58%, grade D+, #181 of 343 statewide, top 53%, 1,310 students, 0% FRL) — zoned schools average 0% FRL vs 56% district-wide (56 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.3%/yr); 79 active listings in the ZIP; high-income renter base; 3,670 units permitted in Middlesex County in 2024 (2,611 in 5+ unit buildings).
• Middlesex County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wind risk, 63% 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 7.6% vs local median 2.2% in Somerville — 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 $23,217/mo this rent would consume 213% of the median local household income ($131k/yr) (locally 1283% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 370 days. Have you received any prior offers? Is the seller open to a 12% 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 1910 — 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.