42 Maple

Spencer, MA 01562

$609,900D+

7 bd · 3.0 ba · 2,014 sqft · Built 1900 · MultiFamily · Active · 86 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,145/mo
• Mortgage (P&I): −$3,198
• Tax + insurance: −$384
• HOA: −$0
• Vac / Maint / Mgmt: −$1,080
• Net cashflow: $483/mo
• Annual: $5,792/yr
• Cap rate: 7.24%
• Cash-on-cash: 3.39%
• DSCR: 1.15
• 1% rule: 0.84%
• Cash to close: $170,772

Investor read

• This is a 3 × 2-bed/1.0-bath units multifamily listed at $610k.
• At list price, monthly cash flow is $483 ($6k/yr) — positive. Per door: $161/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $514k (15.6% below list).
• It's been on market 86 days — a 6% lower offer ($573k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $514k (15.6% 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 77/100 on livability (#57 in MA, #3,021 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, commute A+, housing A; Watch: employment C-, cost of living C-, amenities F.
• Spencer-E Brookfield (suburban): math 15% / reading 36% proficiency, ranked #267 of 302 in MA (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: David Prouty High (math 34% / reading 54%, grade F, #203 of 343 statewide, top 60%, 357 students, 0% FRL) — zoned schools average 0% FRL vs 31% district-wide (31 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 44% at this address vs 26% district-wide (+19 pts) — the actual schools serving this property are materially stronger than the Spencer-E Brookfield average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 26 active listings in the ZIP; solid renter incomes; 2,293 units permitted in Worcester County in 2024 (1,205 in 5+ unit buildings).
• 9 sale attempts since 25y 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 $325k; list at $610k implies a 88% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.2% vs local median 3.3% in Spencer — 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 $5,145/mo this rent would consume 77% of the median local household income ($81k/yr) (locally 599% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 86 days. Have you received any prior offers? Is the seller open to a 16% 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 1900 — 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?
• 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?