26 Mccarthy St

Franklin Town, MA 02038

$774,999B

5 bd · 3.0 ba · 2,550 sqft · Built 1910 · MultiFamily · Price Changed · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,584/mo
• Mortgage (P&I): −$4,064
• Tax + insurance: −$869
• HOA: −$0
• Vac / Maint / Mgmt: −$2,223
• Net cashflow: $3,428/mo
• Annual: $41,136/yr
• Cap rate: 11.60%
• Cash-on-cash: 18.96%
• DSCR: 1.84
• 1% rule: 1.37%
• Cash to close: $217,000

Investor read

• This is a 3 × 5-bed/3.0-bath units multifamily listed at $775k.
• At list price, monthly cash flow is $3k ($41k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $775k).
• It's been on market 27 days — a 2% lower offer ($763k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $763k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $23k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#14 in MA, #588 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: amenities F, cost of living F.
• Franklin (suburban): math 51% / reading 63% proficiency, ranked #70 of 302 in MA (top 23%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Zoned schools: Annie Sullivan Middle School (math 49% / reading 57%, grade C+, #65 of 305 statewide, top 21%, 318 students, 0% FRL); Franklin High (math 66% / reading 81%, grade B+, #68 of 343 statewide, top 20%, 1,630 students, 0% FRL).
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.3%/yr); 46 active listings in the ZIP; 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 28y 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 $342k; list at $775k implies a 126% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.3% rent growth), your $217k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 60% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.6% vs local median 2.2% in Franklin Town — 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

• 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?
• Built in 1910 — 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?
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.