54 Independence Grn

Montpelier, VT 05602

$285,000D

2 bd · 1.0 ba · 1,008 sqft · Built 1983 · Condo · Active · 53 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,800/mo
• Mortgage (P&I): −$1,495
• Tax + insurance: −$475
• HOA: −$275
• Vac / Maint / Mgmt: −$588
• Net cashflow: $-33/mo
• Annual: $-391/yr
• Cap rate: 6.16%
• Cash-on-cash: -0.49%
• DSCR: 0.98
• 1% rule: 0.98%
• Cash to close: $79,800

Investor read

• This is a 2-bed/1.0-bath condo listed at $285k. Condition is rated good.
• At list price, monthly cash flow is $-33 ($-391/yr) — negative.
• To cash-flow at today's rent, offer at most $280k (1.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $280k (1.8% below list).
• It's been on market 53 days — a 3% lower offer ($276k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $276k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#3 in VT, #670 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, housing A+, health & safety A+; Watch: crime C-.
• Zoned schools: Union Elementary School (math 52% / reading 57%, grade C, #31 of 192 statewide, top 21%, 448 students, 13% FRL); Main Street Middle School (math 41% / reading 63%, grade C+, #4 of 26 statewide, top 20%, 327 students, 26% FRL); Montpelier High School (math 37% / reading 82%, grade C+, #4 of 48 statewide, top 6%, 403 students, 23% FRL).
• Market conditions: 67 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 185 units permitted in Washington County in 2024 (30 in 5+ unit buildings).
• Washington County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Cap rate 6.2% vs local median 2.5% in Montpelier — 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 53 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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.