94 Main St

Lawrence, MA 01845

$1,599,000D

8 bd · 6.0 ba · 3,884 sqft · Built 1900 · MultiFamily · Active · 110 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $13,324/mo
• Mortgage (P&I): −$8,385
• Tax + insurance: −$1,532
• HOA: −$0
• Vac / Maint / Mgmt: −$2,798
• Net cashflow: $609/mo
• Annual: $7,305/yr
• Cap rate: 6.75%
• Cash-on-cash: 1.63%
• DSCR: 1.07
• 1% rule: 0.83%
• Cash to close: $447,720

Investor read

• This is a 5 × 2-bed/1.6-bath units multifamily listed at $1.60M.
• At list price, monthly cash flow is $609 ($7k/yr) — positive. Per door: $122/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.33M (16.7% below list).
• It's been on market 110 days — a 9% lower offer ($1.46M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.33M (16.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $11k of loan paydown is wiped out by about $48k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#133 in MA) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+; Watch: crime C-, amenities D, employment D-.
• North Andover (suburban): math 46% / reading 55% proficiency, ranked #100 of 302 in MA (top 33%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 11% free/reduced lunch — higher-income household profile.
• Zoned schools: Thomson (math 37% / reading 47%, grade F, #462 of 938 statewide, top 52%, 301 students, 0% FRL); North Andover Middle (math 40% / reading 49%, grade D, #116 of 305 statewide, top 38%, 1,035 students, 0% FRL); North Andover High (math 61% / reading 73%, grade B, #97 of 343 statewide, top 30%, 1,336 students, 0% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.5%/yr); 32 active listings in the ZIP; high-income renter base; 1,032 units permitted in Essex County in 2024 (590 in 5+ unit buildings).
• Essex County population projected at +15% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 10y ago; this cycle's ask has dropped $201k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $576k; list at $1.60M implies a 178% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.7% vs local median 4.0% in Lawrence — 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 $13,324/mo this rent would consume 114% of the median local household income ($141k/yr) (locally 931% 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 110 days. Have you received any prior offers? Is the seller open to a 17% 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?
• 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?