Executive Summary

249 Loring Avenue is a deceptively versatile property. On its face, it is a well-maintained two-family home in Salem's established Loring Avenue corridor — offering 3,069 square feet of living area, 8 bedrooms, 6 full bathrooms, a two-car garage, and six additional off-street parking spaces. Look closer, and a more compelling story emerges.

Each of the two apartments contains a self-contained studio space with its own independent exterior entrance — fire and building department approved, with proper egress bedrooms. These studios currently function as part of their respective apartments. With city approval, they could operate as two independent ADUs, potentially lifting total rental income to approximately $8,400/month across four separate living spaces. This is documented, existing infrastructure — not a renovation project.

At the recommended list price of $999,000, this property is competitively positioned against limited two-family inventory in Salem, offers immediate cash flow to buyers, and carries meaningful income upside that most comparable listings simply cannot match.

Key Property Strengths

Subject Property Overview

Unit Configuration Detail

Local Market Overview

Salem Multi-Family Demand

Salem continues to be one of the most in-demand communities on Massachusetts's North Shore, drawing a diverse buyer pool that includes Boston commuters, lifestyle buyers attracted by the city's historic character and cultural richness, and investors seeking income-producing properties where cap rates haven't been compressed to near-unworkable levels as they have in Greater Boston proper.

Multi-family inventory in Salem — particularly well-configured two-family homes in good condition — remains tight. Properties that combine turn-key condition, strong rental income, and generous parking consistently attract competitive buyer interest when priced accurately. The limited number of recent comparable closed sales in the immediate area reflects scarcity of supply, not weakness of demand.

Interest Rate Environment

While elevated mortgage rates have cooled the broader single-family market, the multi-family investment segment has proven more resilient. Investor buyers with larger down payments or portfolio financing are less rate-sensitive than single-family purchasers. Owner-occupants who intend to live in one unit and rent the other benefit from income-offset math that materially reduces their effective carrying cost — keeping demand for quality two-families elevated even in a higher-rate environment.

Seasonal Timing

June represents a strong entry point into the market. Spring buyer activity extends into early summer, and the window before the August slowdown is historically one of the most productive periods for motivated buyer decision-making. Listing now captures buyers who have been actively searching since spring and are prepared to move decisively on the right property.

Supply & Demand Context

The RPR AVM comp set reflects a market range of $779K–$952K across comparable Salem multi-family properties. The single confirmed closed sale — 11 Sumner Road at $884,000 in January 2026 — is the most relevant transactional anchor. Given 249 Loring's superior condition, larger unit configurations, exceptional parking, and the unique ADU potential embedded in the property, pricing at or above the $933K AVM midpoint is well-supported by the data.

Comparable Sales Analysis

The comparable properties below are drawn from RPR's AVM support data and represent the most relevant multi-family benchmarks within approximately one mile of the subject. Only one confirmed closed sale is available in the recent 6-month window — reflecting the limited inventory of comparable two-family properties in this submarket, which itself supports pricing confidence.

★ Subject property bed/bath counts reflect agent-verified data (8 beds / 6 baths total). Public record shows 4 beds / 4 baths — to be corrected in MLS at listing. Source: RPR AVM support data, public record.

Primary Comp — 11 Sumner Rd · $884,000 (Closed Jan 2026)

The only confirmed arm's-length closed sale within the past six months, located just 0.35 miles away. At 2,646 sq ft with 6 bedrooms and 3 baths, it is meaningfully smaller and less bath-rich than 249 Loring. It has no documented ADU potential, no indication of comparable recent capital improvements, and no equivalent parking advantage. This sale establishes a credible market floor — the subject should price firmly above it.

Adjusted estimate off 11 Sumner: $884,000 + ~$115,000–$180,000 in adjustments = $999,000–$1,064,000

"The comparable evidence — anchored by the Sumner Road closed sale and supported by the broader AVM comp set — points to a defensible market value range of $975,000 to $1,050,000 for 249 Loring in its current condition. The ADU potential is a feature that no comparable property in this data set can match."

Income & Investment Profile

249 Loring Avenue offers a rare two-tiered income story: strong, immediate cash flow in its current as-is configuration, and a documented pathway to meaningfully higher income through ADU designation — without any construction required.

Owner-Occupant Perspective

For a buyer who occupies one unit and rents the other, the income math is immediately compelling. At approximately $3,900/month from the rented unit, a substantial portion of the monthly mortgage payment is offset — making the true carrying cost of this property significantly lower than its purchase price suggests. This "house hacking" dynamic consistently drives motivated, qualified buyers in the two-family segment, particularly on the North Shore where single-family homes at this price point generate no income whatsoever.

Investor Perspective

At a gross rent multiplier of approximately 10.7x and an indicated gross cap rate in the 6.5–7% range, 249 Loring sits within the range that North Shore investors currently find acceptable for a quality, well-located, turn-key asset. The new boilers and updated kitchens reduce near-term capital expenditure risk — a meaningful factor in investor underwriting. The ADU potential provides a documented value-add thesis that most comparable listings cannot offer.

Note: Income projections are estimates based on owner-provided rental figures and agent market knowledge. Buyers should independently review lease agreements, expense history, and conduct their own rental market analysis. This is not a formal investment analysis or appraisal.

Pricing Strategy

Market Timing & Negotiation Expectations

Priced at $999,000, the property is likely to attract serious buyer interest within the first two to three weeks of active marketing. Multi-family buyers in this price range are typically well-qualified and move deliberately when a suitable property appears. A market time of 30–45 days would be a reasonable expectation, with the possibility of faster activity given the limited inventory of comparable properties currently available.

Sale-to-list price ratios for comparable properties in Essex County have generally ranged from 97%–103% over the past 12 months. A well-priced, well-prepared listing in this condition is likely to negotiate within 2–3% of list price. The ADU story, presented clearly and accurately, gives the listing a differentiated narrative that justifies the price and reduces buyer leverage in negotiations.

Marketing Recommendations

• Professional photography emphasizing the unit configurations, updated kitchens, new deck, and parking
• Clearly document the studio spaces and their separate exterior entrances — photos and floor plan are essential
• Correct the public record bedroom/bath count in MLS before listing (8 bed / 6 bath, not 4/4)
• Include current rent roll and boiler/kitchen documentation in the listing information packet
• MLS description should lead with income ($7,800/mo), ADU potential, condition, and parking
• Obtain fire/building department approval documentation from owner for disclosure package

Risks & Influencing Factors

• Limited Recent Closed Comps Only one confirmed closed multi-family sale within 0.5 miles in the past six months (11 Sumner Rd). This reflects low inventory rather than weak demand, but it does mean our valuation carries a wider confidence interval than a comp-rich environment would allow. MLS verification of any additional closings before listing is recommended.
• ADU Approval Is Not Guaranteed The studio spaces have existing infrastructure and approved egress, but formal ADU designation requires a city application process. Buyers attracted to the ADU income upside should verify feasibility with the City of Salem's planning and building departments before relying on that income in their underwriting. Marketing language should present this as potential, not certainty.
• Public Record Data Discrepancy The public record reflects 4 bedrooms / 4 baths, which does not match the actual configuration. This should be corrected in MLS before listing. AVM tools used by buyers and their agents will likely undervalue the property until the record reflects the true unit configuration.
• 1930 Construction Age Consistent with neighborhood character and all comparable properties in the data set — not a differentiating negative. Buyers and lenders will expect a home inspection. The new boilers and updated kitchens substantially reduce the exposure to major deferred maintenance findings.
• Multi-Family Financing Complexity Properties above $750K with income-producing configurations attract a mix of conventional, investment, and portfolio lending products. Some buyer types may face financing complexity depending on occupancy intent and down payment size. Marketing toward pre-qualified buyers and having clean financials ready will streamline the process.
• Tenant Occupancy & Transition Buyers will want to understand the existing lease terms, tenancy status (at-will vs. fixed-term), and tenant cooperation expectations for showings and due diligence. Clear, proactive communication about the existing tenancy in the listing and disclosure process reduces friction and buyer uncertainty.

Final Opinion of Value

Reasoning Summary

The recommended list price of $999,000 is grounded in a multi-layered analysis. The most recent confirmed sale — 11 Sumner Road at $884,000 in January 2026 — establishes a credible market floor. Adjusting for the subject's superior square footage, three additional full bathrooms, updated condition, new boilers, exceptional parking, and the unique ADU potential embedded in both units produces a total adjustment of $115,000–$180,000, yielding a supported range of $999,000–$1,064,000.

The RPR AVM of $933,000 (4-star confidence, range $830K–$1.04M) is a reasonable starting point but does not account for the agent-verified bedroom/bath configuration or the ADU infrastructure — features that are not visible in the public record data the AVM relies upon. Properly presented and accurately documented in MLS, this property should trade at or above the AVM midpoint.

The $999,000 price point is both analytically defensible and strategically smart — it sits at a psychologically meaningful threshold, accurately reflects the adjusted market evidence, and positions the property to attract motivated buyers from both the owner-occupant and investor segments. It also leaves a credible path to the $1,049,000 aggressive scenario if early market response is strong.

Before Going to Market — Recommended Steps

• Pull current MLS data for any additional two-family closed sales in Salem, past 6–12 months
• Obtain fire/building department documentation confirming egress approval for basement bedrooms
• Confirm lease terms and tenancy status for both units
• Correct public record bed/bath data in MLS at time of listing
• Consider a pre-listing consultation with the City of Salem planning department regarding ADU feasibility — even a preliminary conversation strengthens the disclosure package and buyer confidence