75 Lee St

Brookline, MA 02445

$3,950,000D

4 bd · 4.5 ba · 3,484 sqft · Built 1950 · SingleFamily · Active · 57 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,696/mo
• Mortgage (P&I): −$20,714
• Tax + insurance: −$3,804
• HOA: −$0
• Vac / Maint / Mgmt: −$1,616
• Net cashflow: $-18,439/mo
• Annual: $-221,266/yr
• Cap rate: 0.69%
• Cash-on-cash: -20.01%
• DSCR: 0.11
• 1% rule: 0.19%
• Cash to close: $1,106,000

Investor read

• This is a 4-bed/4.5-bath single-family listed at $3.95M.
• At list price, monthly cash flow is $-18k ($-221k/yr) — negative.
• To cash-flow at today's rent, offer at most $693k (82.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $770k (80.5% below list).
• It's been on market 57 days — a 3% lower offer ($3.83M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $693k (82.5% below list) — sets the bar for cash-flow.
• In year one you build about $422k of equity ($27k loan paydown + $395k appreciation (10.0% local appreciation)).
• Location reads 84/100 on livability (#16 in MA, #704 nationally) — a professional / high-income tenant draw. Strengths: schools A+, crime A+, commute A+; Watch: amenities D+, cost of living F.
• Brookline (suburban): math 66% / reading 73% proficiency, ranked #29 of 302 in MA (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.5%/yr); 83 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 958 units permitted in Norfolk County in 2024 (305 in 5+ unit buildings).
• Norfolk County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 27y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $2.58M; list at $3.95M implies a 53% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$679k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate flood risk; major wind risk, 61% chance of damaging wind over 30y; extreme-heat days projected 7→14/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 0.7% vs local median 1.2% in Brookline — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $7,696/mo this rent would consume 66% of the median local household income ($140k/yr) (locally 1138% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 57 days. Have you received any prior offers? Is the seller open to a 82% concession, seller financing, or rate buy-down credit?
• Built in 1950 — 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 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.