90 Mt Vernon St

St. Johnsbury, VT 05819

$56,000B

8 bd · 2.0 ba · 2,536 sqft · Built 1900 · SingleFamily · Active · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,620/mo
• Mortgage (P&I): −$294
• Tax + insurance: −$196
• HOA: −$0
• Vac / Maint / Mgmt: −$340
• Net cashflow: $790/mo
• Annual: $9,482/yr
• Cap rate: 24.41%
• Cash-on-cash: 64.72%
• DSCR: 3.88
• 1% rule: 2.89%
• Cash to close: $15,680

Investor read

• This is a 8-bed/2.0-bath single-family listed at $56k.
• At list price, monthly cash flow is $790 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $56k).
• It's been on market 80 days — a 6% lower offer ($53k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $53k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-2.4%/yr); year-one equity from $387 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Zoned schools: St. Johnsbury School (math 19% / reading 37%, grade F, #149 of 192 statewide, top 78%, 702 students, 52% FRL).
• Watch-outs: property tax is 2.5% of price; flood insurance adds $56/mo; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 66 active listings in the ZIP; 112 units permitted in Caledonia County in 2024 (15 in 5+ unit buildings).
• Caledonia County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 20y ago; this cycle's ask has dropped $33k (37%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-2.4% appreciation + 3.0% rent growth), your $16k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 24.4% vs local median 3.4% in St. Johnsbury — 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 80 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?
• What's the documented flood / surge / shoreline-erosion history here (FEMA AND non-FEMA — e.g., storm surge, creek backup, septic-field saturation)?