188 Stratton Rd

Rutland, VT 05701

$252,000D

3 bd · 1.0 ba · 1,104 sqft · Built 1930 · SingleFamily · Pending · 164 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,058/mo
• Mortgage (P&I): −$1,322
• Tax + insurance: −$243
• HOA: −$0
• Vac / Maint / Mgmt: −$432
• Net cashflow: $61/mo
• Annual: $728/yr
• Cap rate: 6.58%
• Cash-on-cash: 1.03%
• DSCR: 1.05
• 1% rule: 0.82%
• Cash to close: $70,560

Investor read

• This is a 3-bed/1.0-bath single-family listed at $252k.
• At list price, monthly cash flow is $61 ($728/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $206k (18.3% below list).
• It's been on market 164 days — a 12% lower offer ($222k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $206k (18.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#6 in VT, #1,410 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, health & safety A+; Watch: employment C-, crime F.
• Zoned schools: Rutland Intermediate School (math 22% / reading 32%, grade F, #151 of 192 statewide, top 82%, 493 students, 54% FRL); Rutland Middle School (math 11% / reading 22%, grade F, #26 of 26 statewide, top 100%, 254 students, 49% FRL); Rutland Senior High School (math 37% / reading 47%, grade F, #18 of 48 statewide, top 38%, 752 students, 33% FRL).
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 96 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 90 units permitted in Rutland County in 2024 (0 in 5+ unit buildings).
• Rutland County population projected at -28% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 24y ago; this cycle's ask has dropped $16k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $120k; list at $252k implies a 111% gain — meaningful room to come down on a strong offer.
• Cap rate 6.6% vs local median 4.4% in Rutland — 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 164 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Built in 1930 — 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 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?
• 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?
• 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.