120 Village St

Dorset, VT 05253

$419,000D

3 bd · 1.0 ba · 2,112 sqft · Built 1850 · SingleFamily · Active · 571 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,825/mo
• Mortgage (P&I): −$2,197
• Tax + insurance: −$697
• HOA: −$0
• Vac / Maint / Mgmt: −$593
• Net cashflow: $-663/mo
• Annual: $-7,956/yr
• Cap rate: 4.39%
• Cash-on-cash: -6.78%
• DSCR: 0.70
• 1% rule: 0.67%
• Cash to close: $117,320

Investor read

• This is a 3-bed/1.0-bath single-family listed at $419k.
• At list price, monthly cash flow is $-663 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $302k (28.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $282k (32.6% below list).
• It's been on market 571 days — a 12% lower offer ($369k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $282k (32.6% below list) — sets the bar for 1% rule.
• In year one you build about $18k of equity ($3k loan paydown + $15k appreciation (3.6% local appreciation)).
• Location reads 63/100 on livability (#71 in VT) — a middle-class / working-renter tenant base. Strengths: employment A+, crime A; Watch: amenities F, commute F, cost of living D-.
• Watch-outs: built in 1850 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 11 active listings in the ZIP; 59 units permitted in Bennington County in 2024 (0 in 5+ unit buildings).
• Bennington County population projected at -23% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $325k; 29% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 3, paydown + projected appreciation supports a ~$44k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.4% vs local median 0.7% in Dorset — 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.

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 571 days. Have you received any prior offers? Is the seller open to a 33% concession, seller financing, or rate buy-down credit?
• Built in 1850 — 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?
• 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.