9 Prospect St

East Barre, VT 05649

$101,915C+

2 bd · 1.5 ba · 1,172 sqft · Built 1920 · SingleFamily · Pending · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,198/mo
• Mortgage (P&I): −$534
• Tax + insurance: −$238
• HOA: −$0
• Vac / Maint / Mgmt: −$252
• Net cashflow: $174/mo
• Annual: $2,086/yr
• Cap rate: 8.34%
• Cash-on-cash: 7.31%
• DSCR: 1.33
• 1% rule: 1.18%
• Cash to close: $28,536

Investor read

• This is a 2-bed/1.5-bath single-family listed at $102k.
• At list price, monthly cash flow is $174 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $102k).
• It's been on market 68 days — a 6% lower offer ($96k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $96k (6.0% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($704 loan paydown + $437 appreciation (0.4% local appreciation)).
• Location reads 61/100 on livability (#79 in VT) — a middle-class / working-renter tenant base. Strengths: cost of living A+; Watch: health & safety D, amenities F, commute F.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 7 active listings in the ZIP; 185 units permitted in Washington County in 2024 (30 in 5+ unit buildings).
• Washington County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (0.4% appreciation + 3.0% rent growth), your $29k cash investment doubles in ~7 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 68 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1920 — 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.
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.