27 A-B Grafton St

Millbury, MA 01527

$515,000B

15 bd · 10.5 ba · 2,881 sqft · Built 1858 · MultiFamily · Active · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,950/mo
• Mortgage (P&I): −$2,701
• Tax + insurance: −$858
• HOA: −$0
• Vac / Maint / Mgmt: −$1,460
• Net cashflow: $1,931/mo
• Annual: $23,177/yr
• Cap rate: 10.79%
• Cash-on-cash: 16.07%
• DSCR: 1.72
• 1% rule: 1.35%
• Cash to close: $144,200

Investor read

• This is a 3 × 2-bed/1.2-bath units multifamily listed at $515k. Condition is rated fair.
• At list price, monthly cash flow is $2k ($23k/yr) — positive. Per door: $644/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $515k).
• It's been on market 37 days — a 3% lower offer ($500k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $500k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Millbury (suburban): math 35% / reading 45% proficiency, ranked #191 of 302 in MA (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Elmwood Street (math 42% / reading 57%, grade D, #330 of 938 statewide, top 38%, 421 students, 0% FRL); Millbury Junior/Senior High (math 37% / reading 40%, grade F, #233 of 343 statewide, top 69%, 740 students, 0% FRL) — zoned schools average 0% FRL vs 22% district-wide (22 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1858 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 23 active listings in the ZIP; high-income renter base; 2,293 units permitted in Worcester County in 2024 (1,205 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $144k cash investment doubles in ~8 years — after that, you're playing with house money.
• At $6,950/mo this rent would consume 70% of the median local household income ($119k/yr) (locally 238% 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 37 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1858 — 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.

Repairs flagged (vision-AI assessment)

• Moderate: Kitchen cabinets — Worn appearance suggests need for replacement or resurfacing.
• Moderate: Bathroom fixtures — Dated appearance suggests need for replacement or upgrade.
• Major: Exterior siding — Weathered appearance suggests need for repainting or replacement.
• Minor: Landscaping — Overgrown appearance suggests trimming and maintenance.