145 Lewis St

Lynn, MA 01902

$6,100,000C

33 bd · 26.0 ba · 17,407 sqft · Built 2015 · MultiFamily · Active · 66 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $83,360/mo
• Mortgage (P&I): −$31,989
• Tax + insurance: −$7,334
• HOA: −$0
• Vac / Maint / Mgmt: −$17,506
• Net cashflow: $26,531/mo
• Annual: $318,377/yr
• Cap rate: 11.51%
• Cash-on-cash: 18.64%
• DSCR: 1.83
• 1% rule: 1.37%
• Cash to close: $1,708,000

Investor read

• This is a 25 × 33-bed/26.0-bath units multifamily listed at $6.10M.
• At list price, monthly cash flow is $27k ($318k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($83k rent vs $6.10M).
• It's been on market 66 days — a 6% lower offer ($5.73M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $5.73M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $42k of loan paydown is wiped out by about $183k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#74 in MA, #4,077 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, housing B+; Watch: amenities C-, schools D+, crime D-.
• Lynn (suburban): math 14% / reading 25% proficiency, ranked #293 of 302 in MA (top 97%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 73% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents flat; 51 active listings in the ZIP; 1,032 units permitted in Essex County in 2024 (590 in 5+ unit buildings).
• Essex County population projected at +15% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $975k; list at $6.10M implies a 526% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 0.7% rent growth), your $1.71M cash investment doubles in ~8 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 72% 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 11.5% vs local median 3.6% in Lynn — 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 $83,360/mo this rent would consume 1492% of the median local household income ($67k/yr) (locally 3883% 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 66 days. Have you received any prior offers? Is the seller open to a 6% 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?
• 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?
• 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.