238 Seminary Ave

Manchester, VT 05254

$995,000B+

5 bd · 4.0 ba · 4,126 sqft · Built 1894 · SingleFamily · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,500/mo
• Mortgage (P&I): −$5,218
• Tax + insurance: −$1,085
• HOA: −$0
• Vac / Maint / Mgmt: −$2,625
• Net cashflow: $3,572/mo
• Annual: $42,865/yr
• Cap rate: 10.60%
• Cash-on-cash: 15.39%
• DSCR: 1.68
• 1% rule: 1.26%
• Cash to close: $278,600

Investor read

• This is a 5-bed/4.0-bath single-family listed at $995k.
• At list price, monthly cash flow is $4k ($43k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $995k).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $37k of equity ($7k loan paydown + $30k appreciation (3.0% local appreciation)).
• Location reads 61/100 on livability (#80 in VT) — a middle-class / working-renter tenant base. Strengths: crime B; Watch: health & safety D, amenities F, commute F.
• Zoned schools: Manchester Elementary/Middle School (math 30% / reading 45%, grade F, #112 of 192 statewide, top 58%, 392 students, 41% FRL).
• Watch-outs: built in 1894 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 12 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 59 units permitted in Bennington County in 2024 (0 in 5+ unit buildings).
• Bennington County population projected at -23% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $550k; list at $995k implies a 81% gain — meaningful room to come down on a strong offer.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $279k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$60k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 10.6% vs local median 5.0% in Manchester — 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

• Built in 1894 — 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.
• 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.