72 Charlemont St

Newton, MA 02461

$3,100,000B-

7 bd · 7.0 ba · 7,264 sqft · Built 1997 · SingleFamily · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $35,000/mo
• Mortgage (P&I): −$16,257
• Tax + insurance: −$4,629
• HOA: −$0
• Vac / Maint / Mgmt: −$7,350
• Net cashflow: $6,764/mo
• Annual: $81,172/yr
• Cap rate: 8.91%
• Cash-on-cash: 9.35%
• DSCR: 1.42
• 1% rule: 1.13%
• Cash to close: $868,000

Investor read

• This is a 7-bed/7.0-bath single-family listed at $3.10M.
• At list price, monthly cash flow is $7k ($81k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($35k rent vs $3.10M).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $21k of loan paydown is wiped out by about $93k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#17 in MA, #746 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: amenities D-, cost of living F.
• Newton (urban): math 64% / reading 73% proficiency, ranked #27 of 302 in MA (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 9% free/reduced lunch — higher-income household profile.
• Zoned schools: Countryside (math 62% / reading 77%, grade A-, #68 of 938 statewide, top 9%, 372 students, 0% FRL); Charles E Brown Middle (math 70% / reading 72%, grade A, #9 of 305 statewide, top 3%, 750 students, 0% FRL); Newton South High (math 87% / reading 88%, grade A, #9 of 343 statewide, top 3%, 1,837 students, 0% FRL).
• Market conditions: 19 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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 since 31y 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 $272k; list at $3.10M implies a 1040% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 58% chance of damaging wind over 30y; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.9% vs local median 1.4% in Newton — 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

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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.