465 Chapel St

Lee, MA 01238

$995,000B-

90 bd · 81.0 ba · 5,690 sqft · Built 1880 · MultiFamily · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,329/mo
• Mortgage (P&I): −$5,218
• Tax + insurance: −$1,079
• HOA: −$0
• Vac / Maint / Mgmt: −$2,379
• Net cashflow: $2,653/mo
• Annual: $31,838/yr
• Cap rate: 9.49%
• Cash-on-cash: 11.43%
• DSCR: 1.51
• 1% rule: 1.14%
• Cash to close: $278,600

Investor read

• This is a 8×1bd/1ba + 1×2bd/1ba units multifamily listed at $995k.
• At list price, monthly cash flow is $3k ($32k/yr) — positive. Per door: $295/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $995k).
• It's been on market 30 days — a 2% lower offer ($980k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $980k (1.5% below list) — sets the bar for market timing.
• In year one you build about $8k of equity ($7k loan paydown + $1k appreciation (0.1% local appreciation)).
• Location reads 74/100 on livability (#88 in MA, #4,582 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, crime B+; Watch: cost of living C-, amenities F.
• Lee (town): math 31% / reading 47% proficiency, ranked #211 of 302 in MA (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lee Elementary (math 27% / reading 42%, grade F, #577 of 938 statewide, top 65%, 341 students, 0% FRL); Lee Middle/High School (math 37% / reading 57%, grade D-, #194 of 343 statewide, top 57%, 325 students, 0% FRL) — zoned schools average 0% FRL vs 28% district-wide (28 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1880 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 39 active listings in the ZIP; 130 units permitted in Berkshire County in 2024 (10 in 5+ unit buildings).
• Berkshire County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 6 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 $575k; list at $995k implies a 73% gain — meaningful room to come down on a strong offer.
• At projected returns (0.1% appreciation + 3.0% rent growth), your $279k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$57k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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 1880 — 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.