20 22 Mount Pleasant View Ave

Cumberland Hill, RI 02864

$599,000D-

4 bd · 3.0 ba · 2,079 sqft · Built 1930 · MultiFamily · Active · 137 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,104/mo
• Mortgage (P&I): −$3,141
• Tax + insurance: −$627
• HOA: −$0
• Vac / Maint / Mgmt: −$862
• Net cashflow: $-526/mo
• Annual: $-6,314/yr
• Cap rate: 5.24%
• Cash-on-cash: -3.76%
• DSCR: 0.83
• 1% rule: 0.69%
• Cash to close: $167,720

Investor read

• This is a 2 × 2-bed/1.5-bath units multifamily listed at $599k.
• At list price, monthly cash flow is $-526 ($-6k/yr) — negative. Per door: $-263/mo.
• To cash-flow at today's rent, offer at most $506k (15.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $410k (31.5% below list).
• It's been on market 137 days — a 12% lower offer ($527k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $410k (31.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $18k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#11 in RI, #4,666 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F.
• Cumberland (suburban): math 40% / reading 52% proficiency, ranked #9 of 39 in RI (top 23%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: John J. Mclaughlin Cumberland (math 37% / reading 42%, grade F, #46 of 167 statewide, top 30%, 424 students, 18% FRL); North Cumberland Middle (math 46% / reading 61%, grade C+, #4 of 57 statewide, top 5%, 635 students, 13% FRL); Cumberland High School (math 35% / reading 58%, grade D-, #15 of 58 statewide, top 26%, 1,446 students, 17% FRL) — zoned schools at 16% FRL track the district average.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-1.5%/yr); 148 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 776 units permitted in Providence County in 2024 (229 in 5+ unit buildings).
• Providence County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 5y ago; this cycle's ask has dropped $46k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $396k; list at $599k implies a 51% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 66% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.2% vs local median 3.2% in Cumberland Hill — 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.
• This rent runs 42% of the median local income ($118k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 137 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• 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 1930 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?