8 Fern

Worcester, MA 01610

$799,900C+

8 bd · 4.0 ba · 4,855 sqft · Built 1890 · MultiFamily · Active · 49 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,241/mo
• Mortgage (P&I): −$4,195
• Tax + insurance: −$923
• HOA: −$0
• Vac / Maint / Mgmt: −$1,941
• Net cashflow: $2,183/mo
• Annual: $26,193/yr
• Cap rate: 9.57%
• Cash-on-cash: 11.69%
• DSCR: 1.52
• 1% rule: 1.16%
• Cash to close: $223,972

Investor read

• This is a 4 × 3-bed/1.0-bath units multifamily listed at $800k.
• At list price, monthly cash flow is $2k ($26k/yr) — positive. Per door: $546/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $800k).
• It's been on market 49 days — a 3% lower offer ($776k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $776k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-0.7%/yr); year-one equity from $6k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 87/100 on livability (#9 in MA, #312 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: cost of living D.
• Worcester (urban): math 17% / reading 30% proficiency, ranked #280 of 302 in MA (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Chandler Magnet (math 12% / reading 17%, grade F, #873 of 938 statewide, top 94%, 402 students, 0% FRL); Sullivan Middle (math 18% / reading 30%, grade F, #238 of 305 statewide, top 78%, 827 students, 0% FRL); South High Community (math 26% / reading 36%, grade F, #266 of 343 statewide, top 77%, 1,666 students, 0% FRL) — zoned schools average 0% FRL vs 66% district-wide (66 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-2.2%/yr); 30 active listings in the ZIP; 2,293 units permitted in Worcester County in 2024 (1,205 in 5+ unit buildings).
• Current owner paid $113k; list at $800k implies a 608% gain — meaningful room to come down on a strong offer.
• At projected returns (-0.7% appreciation + 0.0% rent growth), your $224k cash investment doubles in ~9 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.6% vs local median 4.1% in Worcester — 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 $9,241/mo this rent would consume 215% of the median local household income ($51k/yr) (locally 2517% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 49 days. Have you received any prior offers? Is the seller open to a 3% 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 1890 — 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.
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.