114 Club Sugarbush Rd

Warren, VT 05674

$265,000D

1 bd · 1.5 ba · 814 sqft · Built 1980 · Condo · Active · 136 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,024/mo
• Mortgage (P&I): −$1,390
• Tax + insurance: −$459
• HOA: −$547
• Vac / Maint / Mgmt: −$425
• Net cashflow: $-796/mo
• Annual: $-9,558/yr
• Cap rate: 2.69%
• Cash-on-cash: -12.88%
• DSCR: 0.43
• 1% rule: 0.76%
• Cash to close: $74,200

Investor read

• This is a 1-bed/1.5-bath condo listed at $265k.
• At list price, monthly cash flow is $-796 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $124k (53.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $202k (23.6% below list).
• It's been on market 136 days — a 12% lower offer ($233k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $124k (53.1% below list) — sets the bar for cash-flow.
• In year one you build about $28k of equity ($2k loan paydown + $26k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Zoned schools: Crossett Brook Middle School (math 39% / reading 61%, grade C, #7 of 26 statewide, top 24%, 288 students, 14% FRL); Harwood Union Middle/High School (math 27% / reading 67%, grade D-, #10 of 48 statewide, top 28%, 556 students, 18% FRL).
• Watch-outs: HOA is 27% of rent.
• Market conditions: 52 active listings in the ZIP; 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.
• Current owner paid $180k; 47% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$46k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 136 days. Have you received any prior offers? Is the seller open to a 53% 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?
• 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.
• 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.