45 Elm St

Webster, MA 01570

$800,000F

6 bd · 3.0 ba · 3,316 sqft · Built 1910 · MultiFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,379/mo
• Mortgage (P&I): −$4,195
• Tax + insurance: −$644
• HOA: −$0
• Vac / Maint / Mgmt: −$1,130
• Net cashflow: $-590/mo
• Annual: $-7,082/yr
• Cap rate: 5.41%
• Cash-on-cash: -3.16%
• DSCR: 0.86
• 1% rule: 0.67%
• Cash to close: $224,000

Investor read

• This is a 3 × 2-bed/?-bath units multifamily listed at $800k.
• At list price, monthly cash flow is $-590 ($-7k/yr) — negative. Per door: $-197/mo.
• To cash-flow at today's rent, offer at most $696k (13.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $538k (32.8% below list).
• It's been on market 20 days — a 2% lower offer ($788k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $538k (32.8% below list) — sets the bar for 1% rule.
• In year one you build about $86k of equity ($6k loan paydown + $80k appreciation (10.0% local appreciation)).
• Location reads 65/100 on livability (#183 in MA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, housing A; Watch: crime D-, amenities F, commute F.
• Webster (suburban): math 15% / reading 28% proficiency, ranked #286 of 302 in MA (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Park Avenue Elementary (math 21% / reading 35%, grade F, #689 of 938 statewide, top 74%, 737 students, 0% FRL); Webster Middle School (math 11% / reading 23%, grade F, #266 of 305 statewide, top 88%, 590 students, 0% FRL); Bartlett High School (math 32% / reading 42%, grade F, #238 of 343 statewide, top 71%, 365 students, 0% FRL) — zoned schools average 0% FRL vs 46% district-wide (46 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 43 active listings in the ZIP; 2,293 units permitted in Worcester County in 2024 (1,205 in 5+ unit buildings).
• By year 2, paydown + projected appreciation supports a ~$137k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 46% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.4% vs local median 3.4% in Webster — 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 $5,379/mo this rent would consume 89% of the median local household income ($73k/yr) (locally 690% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• 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 1910 — 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.
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?