2 Ethel Ave

Marlborough, MA 01752

$159,900D-

2 bd · 1.0 ba · 1,000 sqft · Built 1978 · Manufactured · Active · 86 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,411/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$266
• HOA: −$1,056
• Vac / Maint / Mgmt: −$506
• Net cashflow: $-256/mo
• Annual: $-3,077/yr
• Cap rate: 4.37%
• Cash-on-cash: -6.87%
• DSCR: 0.69
• 1% rule: 1.51%
• Cash to close: $44,772

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $160k. Condition is rated good.
• At list price, monthly cash flow is $-256 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $123k (23.2% below list).
• Meets the 1% rule at list price ($2k rent vs $160k).
• It's been on market 86 days — a 6% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $123k (23.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#59 in MA, #3,372 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, health & safety A+; Watch: crime C-, amenities F, cost of living F.
• Marlborough (suburban): math 23% / reading 34% proficiency, ranked #250 of 302 in MA (top 83%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Francis J Kane (math 25% / reading 46%, grade F, #569 of 938 statewide, top 61%, 493 students, 0% FRL); 1 Lt Charles W. Whitcomb School (math 22% / reading 28%, grade F, #234 of 305 statewide, top 77%, 1,044 students, 0% FRL); Marlborough High (math 42% / reading 43%, grade F, #212 of 343 statewide, top 62%, 1,064 students, 0% FRL) — zoned schools average 0% FRL vs 38% district-wide (38 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: HOA is 44% of rent.
• Market conditions: Rents rising (+1.2%/yr); 74 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals leasing fast (median 1d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 3,670 units permitted in Middlesex County in 2024 (2,611 in 5+ unit buildings).
• Middlesex County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $20k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $61k; list at $160k implies a 162% gain — meaningful room to come down on a strong offer.
• Cap rate 4.4% vs local median 3.0% in Marlborough — 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 31% of the median local income ($92k/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 86 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?