37 Finn St

Northampton, MA 01060

$735,000C

3 bd · 2.0 ba · 2,303 sqft · Built 1900 · MultiFamily · Active · 290 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,700/mo
• Mortgage (P&I): −$3,854
• Tax + insurance: −$801
• HOA: −$0
• Vac / Maint / Mgmt: −$1,617
• Net cashflow: $1,428/mo
• Annual: $17,136/yr
• Cap rate: 8.62%
• Cash-on-cash: 8.33%
• DSCR: 1.37
• 1% rule: 1.05%
• Cash to close: $205,800

Investor read

• This is a 3-bed/2.0-bath multifamily listed at $735k.
• At list price, monthly cash flow is $1k ($17k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $735k).
• It's been on market 290 days — a 12% lower offer ($647k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $647k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#49 in MA, #2,534 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, employment A; Watch: crime D+, amenities F, cost of living F.
• Northampton (suburban): math 36% / reading 53% proficiency, ranked #175 of 302 in MA (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.9%/yr); 41 active listings in the ZIP; solid renter incomes; 349 units permitted in Hampshire County in 2024 (185 in 5+ unit buildings).
• Hampshire County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts 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 $249k; list at $735k implies a 196% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 5.9% rent growth), your $206k cash investment doubles in ~9 years — after that, you're playing with house money.
• Cap rate 8.6% vs local median 2.2% in Northampton — 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 $7,700/mo this rent would consume 120% of the median local household income ($77k/yr) (locally 1269% 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 290 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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.
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.