RentalCalcs Editorial · Research edition October 18, 2026
Massachusetts: build a defensible buyer NOI
Property / address: ____________________ Review date: ____________
Examples below are hypothetical, not observed market rents, a quoted premium or a loan offer. Write your property values and evidence on the right. This sheet does not save inputs.
| Annual budget or acquisition line | Example | Your figure / source / date |
|---|---|---|
| Purchase price | $2,200,000 | ____________________ |
| Scheduled annual apartment rent | $268,800 | ____________________ |
| Other annual income | $3,200 | ____________________ |
| Vacancy / concessions / collection loss | $16,000 | ____________________ |
| Buyer taxes | $30,000 | ____________________ |
| Insurance | $14,000 | ____________________ |
| Owner-paid utilities | $16,000 | ____________________ |
| Recurring maintenance | $18,000 | ____________________ |
| Management | $17,000 | ____________________ |
| Administration | $7,000 | ____________________ |
| Annual NOI before reserves / debt | $154,000 | ____________________ |
| Loan principal | $1,210,000 | ____________________ |
| Annual debt service | $91,776 | ____________________ |
| Annual replacement reserve | $6,400 | ____________________ |
| Closing costs | $66,000 | ____________________ |
| Immediate capital work | $140,000 | ____________________ |
| Total invested cash | $1,196,000 | ____________________ |
Example: 8 units × $2,800 monthly × 12. Debt: 6.5% assumed, 30-year amortization. NOI $154,000 ÷ price $2,200,000 = 7.00% cap. Cash after debt and reserves $55,824 ÷ invested cash $1,196,000 = 4.67% cash-on-cash. DSCR 1.68× before / 1.61× after reserves. Verify the lender numerator.
Immediate work is capital outside NOI. Replacement reserve is deducted below NOI. Add any required initial lender reserve deposit to invested cash. Test the buyer tax treatment and a slower first turnover while lead and system work are completed. The $140,000 capital budget requires actual bids.
Local evidence and property decisions
Municipal buyer taxes
Massachusetts property taxes are administered locally and may involve classification and exemptions. Confirm the parcel’s current assessed value, classification and buyer eligibility. Do not retain a seller’s residential exemption without verifying that it applies to the buyer.
Lead and capital work
Review Massachusetts lead-law guidance, inspection records and compliance documents. Obtain qualified bids and a lawful tenant-access plan; a generic per-unit renovation allowance cannot establish compliance.
A financing perspective
Arbor’s small-multifamily report covers a national financed-loan universe. Its cap and debt metrics are not Massachusetts sale comparables. Use it to question leverage and lender coverage, then obtain a property-specific term sheet.
Comparable-sale audit
| Sale / closing date | Location, units, vintage | NOI period / expense convention | Price / cap / adjustments |
|---|---|---|---|
| ____________ ____________ | ____________ ____________ | ____________ ____________ | ____________ ____________ |
| ____________ ____________ | ____________ ____________ | ____________ ____________ | ____________ ____________ |
| ____________ ____________ | ____________ ____________ | ____________ ____________ | ____________ ____________ |
Do not average incompatible rates. Identify asks, financed valuations and closed sales separately. Shared provider data is not independent confirmation.
Downside, exit and approval boundary
Value = annual NOI ÷ (cap percent ÷ 100). Total NOI growth is cumulative. Simple property value excludes debt payoff, sale costs, taxes and interim cash flows. Calculate net proceeds separately.
| Scenario | NOI / exit cap | Gross value | Net proceeds after payoff / sale costs / tax |
|---|---|---|---|
| Compression | ________ | ________ | ________ |
| Stable caps | ________ | ________ | ________ |
| Expansion + lower NOI | ________ | ________ | ________ |
What evidence would invalidate my case? __________________________
Missing documents / responsible person / deadline: __________________
Sources and dated coverage limits: vouchermatch.com/rentalcalcs/cap-rates/massachusetts#sources. Consult the report before treating a benchmark as current.