10-12 School Sq

Winchendon, MA 01368

$659,000B

8 bd · 4.0 ba · 3,818 sqft · Built 1860 · MultiFamily · Active · 71 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,323/mo
• Mortgage (P&I): −$3,456
• Tax + insurance: −$1,098
• HOA: −$0
• Vac / Maint / Mgmt: −$1,748
• Net cashflow: $2,021/mo
• Annual: $24,252/yr
• Cap rate: 9.97%
• Cash-on-cash: 13.14%
• DSCR: 1.58
• 1% rule: 1.26%
• Cash to close: $184,520

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $659k. Condition is rated good.
• At list price, monthly cash flow is $2k ($24k/yr) — positive. Per door: $505/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $659k).
• It's been on market 71 days — a 6% lower offer ($619k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $619k (6.0% below list) — sets the bar for market timing.
• In year one you build about $7k of equity ($5k loan paydown + $3k appreciation (0.4% local appreciation)).
• Location reads 71/100 on livability (#125 in MA) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, crime A-; Watch: schools F, amenities F.
• Winchendon (rural): math 14% / reading 33% proficiency, ranked #274 of 302 in MA (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1860 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 7 active listings in the ZIP; 2,293 units permitted in Worcester County in 2024 (1,205 in 5+ unit buildings).
• 4 sale attempts since 8y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $62k; list at $659k implies a 963% gain — meaningful room to come down on a strong offer.
• At projected returns (0.4% appreciation + 3.0% rent growth), your $185k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$45k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 10.0% vs local median 4.2% in Winchendon — 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

• It's been on market 71 days. Have you received any prior offers? Is the seller open to a 6% 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 1860 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.