705/707 Qtr. I V Adams House

Ludlow, VT 05149

$169,999D

3 bd · 3.0 ba · 1,854 sqft · Built 2007 · Timeshare · Active · 635 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,073/mo
• Mortgage (P&I): −$891
• Tax + insurance: −$283
• HOA: −$698
• Vac / Maint / Mgmt: −$435
• Net cashflow: $-235/mo
• Annual: $-2,821/yr
• Cap rate: 4.63%
• Cash-on-cash: -5.93%
• DSCR: 0.74
• 1% rule: 1.22%
• Cash to close: $47,600

Investor read

• This is a 3-bed/3.0-bath timeshare listed at $170k.
• At list price, monthly cash flow is $-235 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $136k (20.0% below list).
• Meets the 1% rule at list price ($2k rent vs $170k).
• It's been on market 635 days — a 12% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $136k (20.0% below list) — sets the bar for cash-flow.
• In year one you build about $1k of equity ($1k loan paydown + $-36 appreciation (-0.0% local appreciation)).
• Location reads 73/100 on livability (#20 in VT, #4,932 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, health & safety A+, housing B+; Watch: schools C-, amenities F, commute F.
• Watch-outs: HOA is 34% of rent.
• Market conditions: 95 active listings in the ZIP; 339 units permitted in Windsor County in 2024 (240 in 5+ unit buildings).
• Windsor County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 23 sale attempts since 7y ago; this cycle's ask is 183% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Cap rate 4.6% vs local median 0.3% in Ludlow — 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 635 days. Have you received any prior offers? Is the seller open to a 20% 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?
• 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.
• 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.