1891 Hanna Rd

Highgate, VT 05459

$219,000D

6 bd · 1.0 ba · 2,451 sqft · Built 1880 · Other · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,788/mo
• Mortgage (P&I): −$1,148
• Tax + insurance: −$365
• HOA: −$0
• Vac / Maint / Mgmt: −$376
• Net cashflow: $-101/mo
• Annual: $-1,210/yr
• Cap rate: 5.74%
• Cash-on-cash: -1.97%
• DSCR: 0.91
• 1% rule: 0.82%
• Cash to close: $61,320

Investor read

• This is a 6-bed/1.0-bath other listed at $219k. Condition is rated poor.
• At list price, monthly cash flow is $-101 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $204k (6.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $179k (18.4% below list).
• It's been on market 40 days — a 3% lower offer ($212k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $179k (18.4% below list) — sets the bar for 1% rule.
• In year one you build about $11k of equity ($2k loan paydown + $10k appreciation (4.5% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Zoned schools: Missisquoi Valley Union High School (math 20% / reading 38%, grade F, #39 of 48 statewide, top 81%, 736 students, 37% FRL).
• Watch-outs: built in 1880 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 26 active listings in the ZIP; 200 units permitted in Franklin County in 2024 (25 in 5+ unit buildings).
• Franklin County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• By year 4, paydown + projected appreciation supports a ~$38k 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 40 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1880 — 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.
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Significant damage to the roof as seen in the satellite image.
• Major: exterior siding — Severe damage and discoloration to the exterior siding.
• Major: HVAC/mechanicals — No interior photos to assess the condition of HVAC or mechanical systems.
• Major: landscaping — No landscaping or curb appeal improvements visible in the photos.