158 Railroad St

Groton, VT 05046

$199,999B+

4 bd · 2.5 ba · 3,182 sqft · Built 1890 · MultiFamily · Active · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,613/mo
• Mortgage (P&I): −$1,049
• Tax + insurance: −$223
• HOA: −$0
• Vac / Maint / Mgmt: −$549
• Net cashflow: $792/mo
• Annual: $9,509/yr
• Cap rate: 11.05%
• Cash-on-cash: 16.98%
• DSCR: 1.76
• 1% rule: 1.31%
• Cash to close: $56,000

Investor read

• This is a 1×3.0bd/1.5ba + 1×2.0bd/1.0ba units multifamily listed at $200k.
• At list price, monthly cash flow is $792 ($10k/yr) — positive. Per door: $396/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $200k).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $8k of equity ($1k loan paydown + $7k appreciation (3.4% local appreciation)).
• Location reads 59/100 on livability (#97 in VT) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime C-, employment D, health & safety D.
• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 11 active listings in the ZIP; 112 units permitted in Caledonia County in 2024 (15 in 5+ unit buildings).
• Caledonia County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (3.4% appreciation + 3.0% rent growth), your $56k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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 1890 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.