4 Eastern Ave

Webster, MA 01570

$569,900F

4 bd · 3.0 ba · 2,368 sqft · Built 1988 · MultiFamily · Active · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,769/mo
• Mortgage (P&I): −$2,989
• Tax + insurance: −$552
• HOA: −$0
• Vac / Maint / Mgmt: −$791
• Net cashflow: $-563/mo
• Annual: $-6,761/yr
• Cap rate: 5.11%
• Cash-on-cash: -4.24%
• DSCR: 0.81
• 1% rule: 0.66%
• Cash to close: $159,572

Investor read

• This is a 4-bed/3.0-bath multifamily listed at $570k.
• At list price, monthly cash flow is $-563 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $470k (17.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $377k (33.9% below list).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $377k (33.9% below list) — sets the bar for 1% rule.
• In year one you build about $61k of equity ($4k loan paydown + $57k appreciation (10.0% local appreciation)).
• Location reads 65/100 on livability (#183 in MA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, housing A; Watch: schools D-, crime D-, amenities F.
• Webster (suburban): math 15% / reading 28% proficiency, ranked #286 of 302 in MA (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 40 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2,293 units permitted in Worcester County in 2024 (1,205 in 5+ unit buildings).
• By year 2, paydown + projected appreciation supports a ~$98k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 51% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.1% vs local median 3.2% in Webster — 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.
• At $3,769/mo this rent would consume 62% of the median local household income ($73k/yr) (locally 690% 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?
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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 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.