6 Mayhew

Hopkinton, MA 01748

$1,699,000D-

30 bd · 25.0 ba · 4,000 sqft · Built 1900 · MultiFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,257/mo
• Mortgage (P&I): −$8,910
• Tax + insurance: −$2,832
• HOA: −$0
• Vac / Maint / Mgmt: −$2,574
• Net cashflow: $-2,058/mo
• Annual: $-24,701/yr
• Cap rate: 4.84%
• Cash-on-cash: -5.19%
• DSCR: 0.77
• 1% rule: 0.72%
• Cash to close: $475,720

Investor read

• This is a 4×1bd/1ba + 1×2bd/1ba units multifamily listed at $1.70M. Condition is rated good.
• At list price, monthly cash flow is $-2k ($-25k/yr) — negative. Per door: $-412/mo.
• To cash-flow at today's rent, offer at most $1.40M (17.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.23M (27.9% below list).
• It's been on market 21 days — a 2% lower offer ($1.67M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.23M (27.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $51k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#37 in MA, #1,807 nationally) — a professional / high-income tenant draw. Strengths: schools A+, crime A+, employment A+; Watch: amenities F, commute F, cost of living F.
• Hopkinton (suburban): math 71% / reading 78% proficiency, ranked #10 of 302 in MA (top 3%) — strong family-tenant draw, lease renewals of 3-5y typical; only 3% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-1.0%/yr); 61 active listings in the ZIP; high-income renter base; 3,670 units permitted in Middlesex County in 2024 (2,611 in 5+ unit buildings).
• Middlesex County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major wind risk, 41% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.8% vs local median 1.2% in Hopkinton — 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 $12,257/mo this rent would consume 66% of the median local household income ($223k/yr) (locally 245% 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 1900 — 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.