98 K-T Ln #19

Northfield, VT 05663

$90,000B-

3 bd · 2.0 ba · 1,061 sqft · Built 2018 · Manufactured · Pending · 32 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,544/mo
• Mortgage (P&I): −$472
• Tax + insurance: −$646
• HOA: −$358
• Vac / Maint / Mgmt: −$324
• Net cashflow: $-256/mo
• Annual: $-3,073/yr
• Cap rate: 9.49%
• Cash-on-cash: 11.41%
• DSCR: 1.51
• 1% rule: 1.72%
• Cash to close: $25,200

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $90k. Condition is rated good.
• At list price, monthly cash flow is $-256 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $53k (41.2% below list).
• Meets the 1% rule at list price ($2k rent vs $90k).
• It's been on market 32 days — a 3% lower offer ($87k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $53k (41.2% below list) — sets the bar for cash-flow.
• In year one you build about $355 of equity ($622 loan paydown + $-267 appreciation (-0.3% local appreciation)).
• Location reads 77/100 on livability (#12 in VT, #2,938 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Zoned schools: Northfield Elementary School (math 37% / reading 47%, grade F, #84 of 192 statewide, top 48%, 289 students, 20% FRL).
• Watch-outs: flood insurance adds $496/mo; HOA is 23% of rent.
• Market conditions: 26 active listings in the ZIP; 185 units permitted in Washington County in 2024 (30 in 5+ unit buildings).
• Washington County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.5% vs local median 2.3% in Northfield — 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

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 32 days. Have you received any prior offers? Is the seller open to a 41% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.