2477 Route 5 Unit D2

Derby Center, VT 05829

$74,900B+

2 bd · 2.0 ba · 780 sqft · Built 1978 · Manufactured · Active · 257 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $995/mo
• Mortgage (P&I): −$393
• Tax + insurance: −$125
• HOA: −$0
• Vac / Maint / Mgmt: −$209
• Net cashflow: $269/mo
• Annual: $3,225/yr
• Cap rate: 10.60%
• Cash-on-cash: 15.38%
• DSCR: 1.68
• 1% rule: 1.33%
• Cash to close: $20,972

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $75k. Condition is rated good.
• At list price, monthly cash flow is $269 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($995 rent vs $75k).
• It's been on market 257 days — a 12% lower offer ($66k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $66k (12.0% below list) — sets the bar for market timing.
• In year one you build about $8k of equity ($518 loan paydown + $7k appreciation (10.0% local appreciation)).
• Location reads 57/100 on livability (#107 in VT) — a working-class tenant base; expect higher turnover. Strengths: cost of living A, housing A-; Watch: employment D, amenities F, commute F.
• Zoned schools: Derby Elementary School (math 22% / reading 30%, grade F, #160 of 192 statewide, top 84%, 496 students, 47% FRL).
• Market conditions: 39 active listings in the ZIP; 157 units permitted in Orleans County in 2024 (107 in 5+ unit buildings).
• Orleans County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 257 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1978 — 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.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Slight wear and tear, but not in need of immediate replacement.
• Minor: Bathroom fixtures — Some wear and tear, but still functional.
• Minor: Exterior siding — Some discoloration, but not severe enough to require immediate replacement.
• Minor: Landscaping — Overgrown areas and lack of decorative elements, which could be improved with some landscaping work.