112 School

Clinton, MA 01510

$1,700,000B-

30 bd · 8.0 ba · 10,990 sqft · Built 1875 · MultiFamily · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $24,177/mo
• Mortgage (P&I): −$8,915
• Tax + insurance: −$1,751
• HOA: −$0
• Vac / Maint / Mgmt: −$5,077
• Net cashflow: $8,434/mo
• Annual: $101,208/yr
• Cap rate: 12.25%
• Cash-on-cash: 21.26%
• DSCR: 1.95
• 1% rule: 1.42%
• Cash to close: $476,000

Investor read

• This is a 10 × 3-bed/?-bath units multifamily listed at $1.70M.
• At list price, monthly cash flow is $8k ($101k/yr) — positive. Per door: $843/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($24k rent vs $1.70M).
• It's been on market 38 days — a 3% lower offer ($1.65M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.65M (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $51k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#121 in MA) — a middle-class / working-renter tenant base. Strengths: crime A+, health & safety A+, housing A; Watch: cost of living D+, schools D-, amenities D-.
• Clinton (suburban): math 20% / reading 37% proficiency, ranked #254 of 302 in MA (top 84%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1875 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.4%/yr); 36 active listings in the ZIP; solid renter incomes; 2,293 units permitted in Worcester County in 2024 (1,205 in 5+ unit buildings).
• 2 sale attempts since 28y 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 $284k; list at $1.70M implies a 499% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 1.4% rent growth), your $476k cash investment doubles in ~7 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 8→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 12.2% vs local median 2.5% in Clinton — 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 $24,177/mo this rent would consume 323% of the median local household income ($90k/yr) (locally 424% 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 38 days. Have you received any prior offers? Is the seller open to a 3% 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 1875 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-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.