1346 Route 169

Southbridge Town, MA 06281

$265,000D+

4 bd · 1.5 ba · 1,440 sqft · Built 1910 · SingleFamily · Under Contract · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,374/mo
• Mortgage (P&I): −$1,390
• Tax + insurance: −$372
• HOA: −$0
• Vac / Maint / Mgmt: −$499
• Net cashflow: $113/mo
• Annual: $1,361/yr
• Cap rate: 6.81%
• Cash-on-cash: 1.83%
• DSCR: 1.08
• 1% rule: 0.90%
• Cash to close: $74,200

Investor read

• This is a 4-bed/1.5-bath single-family listed at $265k.
• At list price, monthly cash flow is $113 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $237k (10.4% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $237k (10.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 56/100 on livability (#235 in MA) — a working-class tenant base; expect higher turnover. Strengths: housing A+; Watch: cost of living C-, employment D, amenities F.
• Woodstock School District (rural): math 32% / reading 55% proficiency, ranked #89 of 153 in CT (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 9% free/reduced lunch — higher-income household profile.
• Zoned schools: Woodstock Elementary School (math 42% / reading 52%, grade D-, #256 of 553 statewide, top 48%, 427 students, 21% FRL); Woodstock Middle School (math 28% / reading 56%, grade D-, #103 of 175 statewide, top 59%, 346 students, 20% FRL).
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 149 units permitted in Northeastern Connecticut Planning Region in 2024 (0 in 5+ unit buildings).
• 10 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 $120k; list at $265k implies a 121% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 38% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.8% vs local median 3.6% in Southbridge 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

• 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 F-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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.