5 Reynolds Dr

Brattleboro, VT 05301

$284,000B+

7 bd · 3.0 ba · 2,200 sqft · Built 1840 · MultiFamily · Active · 143 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,974/mo
• Mortgage (P&I): −$1,489
• Tax + insurance: −$328
• HOA: −$0
• Vac / Maint / Mgmt: −$1,465
• Net cashflow: $3,692/mo
• Annual: $44,309/yr
• Cap rate: 21.89%
• Cash-on-cash: 55.72%
• DSCR: 3.48
• 1% rule: 2.46%
• Cash to close: $79,520

Investor read

• This is a 3 × 5-bed/3.0-bath units multifamily listed at $284k.
• At list price, monthly cash flow is $4k ($44k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $284k).
• It's been on market 143 days — a 12% lower offer ($250k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $250k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#42 in VT) — a middle-class / working-renter tenant base. Strengths: health & safety A+, cost of living B; Watch: crime F, amenities D-, commute F.
• Zoned schools: Brattleboro Area Middle School (math 28% / reading 53%, grade F, #13 of 26 statewide, top 52%, 262 students, 38% FRL).
• Watch-outs: built in 1840 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 80 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.
• 4 sale attempts since 26y ago; this cycle's ask has dropped $15k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $177k; list at $284k implies a 60% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $80k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 21.9% vs local median 4.5% in Brattleboro — 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 $6,974/mo this rent would consume 127% of the median local household income ($66k/yr) (locally 594% 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 143 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 1840 — 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 A-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?
• 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?