5 Circle St

Templeton, MA 01436

$434,000B-

7 bd · 3.0 ba · 3,787 sqft · Built 1930 · MultiFamily · Active · 297 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,500/mo
• Mortgage (P&I): −$2,276
• Tax + insurance: −$594
• HOA: −$0
• Vac / Maint / Mgmt: −$2,205
• Net cashflow: $5,426/mo
• Annual: $65,107/yr
• Cap rate: 21.29%
• Cash-on-cash: 53.58%
• DSCR: 3.38
• 1% rule: 2.42%
• Cash to close: $121,520

Investor read

• This is a 7-bed/3.0-bath multifamily listed at $434k.
• At list price, monthly cash flow is $5k ($65k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $434k).
• It's been on market 297 days — a 12% lower offer ($382k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $382k (12.0% below list) — sets the bar for market timing.
• In year one you build about $35k of equity ($3k loan paydown + $32k appreciation (7.5% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Narragansett (suburban): math 24% / reading 37% proficiency, ranked #246 of 302 in MA (top 82%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Templeton Elementary School (math 23% / reading 38%, grade F, #656 of 938 statewide, top 70%, 644 students, 0% FRL); Narragansett Middle (math 25% / reading 34%, grade F, #208 of 305 statewide, top 68%, 359 students, 0% FRL); Narragansett Regional High (math 27% / reading 47%, grade F, #238 of 343 statewide, top 71%, 468 students, 0% FRL) — zoned schools average 0% FRL vs 26% district-wide (26 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 11 active listings in the ZIP; 2,293 units permitted in Worcester County in 2024 (1,205 in 5+ unit buildings).
• At projected returns (7.5% appreciation + 3.0% rent growth), your $122k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$57k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AREA NOT INCLUDED (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 297 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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.
• 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.