2 Valley St

Adams, MA 01220

$215,000C-

4 bd · 1.0 ba · 1,310 sqft · Built 1920 · SingleFamily · Active · 280 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,800/mo
• Mortgage (P&I): −$1,127
• Tax + insurance: −$271
• HOA: −$0
• Vac / Maint / Mgmt: −$378
• Net cashflow: $24/mo
• Annual: $285/yr
• Cap rate: 6.43%
• Cash-on-cash: 0.47%
• DSCR: 1.02
• 1% rule: 0.84%
• Cash to close: $60,200

Investor read

• This is a 4-bed/1.0-bath single-family listed at $215k.
• At list price, monthly cash flow is $24 ($285/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $180k (16.3% below list).
• It's been on market 280 days — a 12% lower offer ($189k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $180k (16.3% below list) — sets the bar for 1% rule.
• In year one you build about $16k of equity ($1k loan paydown + $14k appreciation (6.7% local appreciation)).
• Location reads 71/100 on livability (#131 in MA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, housing A, cost of living A-; Watch: schools D+, amenities F, commute F.
• Adams-Cheshire (rural): math 14% / reading 31% proficiency, ranked #285 of 302 in MA (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 62 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 130 units permitted in Berkshire County in 2024 (10 in 5+ unit buildings).
• Berkshire County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 3y ago; this cycle's ask has dropped $85k (28%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $45k; list at $215k implies a 379% gain — meaningful room to come down on a strong offer.
• At projected returns (6.7% appreciation + 3.0% rent growth), your $60k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.4% vs local median 3.7% in Adams — 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

• It's been on market 280 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Built in 1920 — 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?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.