863 N Main St

Brockton, MA 02301

$749,000C+

5 bd · 3.0 ba · 3,060 sqft · Built 1925 · MultiFamily · Active · 117 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,097/mo
• Mortgage (P&I): −$3,928
• Tax + insurance: −$901
• HOA: −$0
• Vac / Maint / Mgmt: −$1,700
• Net cashflow: $1,568/mo
• Annual: $18,811/yr
• Cap rate: 8.80%
• Cash-on-cash: 8.97%
• DSCR: 1.40
• 1% rule: 1.08%
• Cash to close: $209,720

Investor read

• This is a 3 × 3-bed/1.0-bath units multifamily listed at $749k.
• At list price, monthly cash flow is $2k ($19k/yr) — positive. Per door: $523/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $749k).
• It's been on market 117 days — a 9% lower offer ($682k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $682k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#90 in MA, #4,625 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, health & safety A+; Watch: schools D, crime F, amenities F.
• Brockton (suburban): math 12% / reading 22% proficiency, ranked #298 of 302 in MA (top 99%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.0%/yr); 71 active listings in the ZIP; 1,255 units permitted in Plymouth County in 2024 (411 in 5+ unit buildings).
• 2 sale attempts since 2y ago; this cycle's ask has dropped $100k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $625k; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: major wind risk, 67% 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 8.8% vs local median 4.1% in Brockton — 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 $8,097/mo this rent would consume 131% of the median local household income ($74k/yr) (locally 2970% 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 117 days. Have you received any prior offers? Is the seller open to a 9% 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 1925 — 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?
• Crime grade is F 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?