425 Taylor St

Milton, VT 05468

$208,600D-

3 bd · 2.0 ba · 1,568 sqft · Built 2005 · Manufactured · Pending · 42 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,089/mo
• Mortgage (P&I): −$1,094
• Tax + insurance: −$203
• HOA: −$436
• Vac / Maint / Mgmt: −$439
• Net cashflow: $-83/mo
• Annual: $-995/yr
• Cap rate: 5.82%
• Cash-on-cash: -1.70%
• DSCR: 0.92
• 1% rule: 1.00%
• Cash to close: $58,408

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $209k.
• At list price, monthly cash flow is $-83 ($-995/yr) — negative.
• To cash-flow at today's rent, offer at most $194k (7.0% below list).
• Meets the 1% rule at list price ($2k rent vs $209k).
• It's been on market 42 days — a 3% lower offer ($202k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $194k (7.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#88 in VT) — a middle-class / working-renter tenant base. Strengths: crime A, housing A-; Watch: employment C-, amenities F, commute F.
• Zoned schools: Milton Elementary School (math 20% / reading 32%, grade F, #160 of 192 statewide, top 84%, 631 students, 29% FRL).
• Watch-outs: HOA is 21% of rent.
• Market conditions: 116 active listings in the ZIP; 898 units permitted in Chittenden County in 2024 (554 in 5+ unit buildings).
• Chittenden County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $110k; list at $209k implies a 90% gain — meaningful room to come down on a strong offer.
• Cap rate 5.8% vs local median 2.2% in Milton — 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 42 days. Have you received any prior offers? Is the seller open to a 7% concession, seller financing, or rate buy-down credit?
• 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 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?
• 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.