Sample report — AI-generated, for illustration only
This is an AI-generated sample analysis based on public records as of 2026-06-07. The property is shown by city and ZIP code only, and identifying details have been altered to protect privacy. The report may contain errors or be outdated, and is not legal, financial, or professional advice. Independently verify all facts before relying on them.
The memo layer from a real run of the Fyts due-diligence pipeline, published as a sample. Everything below — the verdict, flags, and verifications — is the same analysis a buyer agent receives; the underlying research appendix is omitted here and some identifying details were altered (see notice above).
PROCEED WITH CONDITIONS. The location, transit access, and verified low flood risk (FEMA Zone X, confirmed from primary source) make this a sound Malden 3-family at a fair (~$850,000) price, but the deal carries three potentially deal-breaking unknowns — whether the third unit is a legal/permitted dwelling with a valid C.O., the condition of the 1910s stone foundation and age-related systems (lead, knob-and-tube, possible UST) on an as-is sale, and below-market month-to-month-tenancy income that may not clear lender DSCR. Offer at or modestly below list with a full inspection contingency and hard conditions on the 3-unit C.O., title, rent roll, and lead-free water certification; if the third unit cannot be documented as legal or the foundation/electrical inspections reveal major defects, walk — there is no repair leverage under the as-is clause.
Three-family use is preexisting NONCONFORMING in the Residence A zone and CANNOT be rebuilt by-right after fire/casualty — reconstruction requires a Planning Board special permit, which the Board has denied in multiple comparable cases in recent years.
Impact: Catastrophic value loss scenario: if the building is substantially destroyed and a special permit is denied, the lot reverts to single-family-by-right, potentially erasing $500,000+ of the three-family premium. Insurance covers rebuild cost but cannot guarantee zoning approval.
Mitigation: Obtain a written zoning determination / nonconforming-status verification letter from Malden Building/Inspectional Services BEFORE P&S. Secure law-and-ordinance insurance coverage. Confirm the use has not lapsed (2-year abandonment extinguishes nonconforming rights under MCC 12.28.010.H).
Possible unpermitted 2→3 unit conversion. An early-2010s MLS listing described the property as a 2-family (~2,550 sf, 4bd/2ba); it is now recorded as a 3-family (~2,800 sf, 6bd/3+2ba). No building permit or Certificate of Occupancy for the third unit was found in public records.
Impact: If the third unit lacks a valid C.O., it may be an illegal unit — unrentable, uninsurable as configured, and a basis for the lender to refuse financing. Could remove ~1/3 of rental income and trigger code-enforcement cost.
Mitigation: Demand the Certificate of Occupancy for all three units and the full prior-renovation permit history (building/electrical/plumbing/gas, all finaled) from Malden Inspectional Services as a financing/closing condition. Make the offer contingent on a valid 3-unit C.O.
Sold in its current condition, all three units occupied by month-to-month tenants at below-market rents, NO rent roll disclosed.
Impact: Cannot underwrite actual cash flow. At list price with ~25% down at 6.48%, DSCR may fall to ~0.84x — below the 1.20x most lenders require — meaning the deal may not finance as an investment without more equity or vacant/repositioned delivery. Security deposits, last month's rent, and any interest owed must transfer at closing (M.G.L. c.186 §15B).
Mitigation: Require actual rent roll, all tenancy terms, and a tenant estoppel/security-deposit accounting as an offer contingency. Model DSCR at BOTH current and achievable market rents. Budget for 3-6 month MA eviction timelines if repositioning.
Stone foundation on a 1910s building with a mostly unfinished basement, sold in its current condition.
Impact: Stone foundations of this era are prone to water infiltration, mortar/pointing failure and settlement; remediation can run $20,000-$80,000+. No seller credit available on an as-is deal.
Mitigation: Order a structural/foundation inspection (and if warranted, an engineer's report) during the inspection period. Price any findings into the offer or walk — there is no post-discovery leverage on price under an as-is clause.
Near-certain age-related hazards: lead paint (1910s, 3 rental units), likely knob-and-tube wiring, possible galvanized plumbing, possible prior-oil UST, asbestos, radon (Middlesex = EPA Zone 1, local avg 5.0 pCi/L).
Impact: Aggregate uncorrected exposure $60,000-$200,000+. Deleading $18,000-$45,000 for 3 units; K&T rewire $25,000-$50,000 (and standard insurance may be UNAVAILABLE with K&T, jeopardizing financing); UST under Ch. 21E is STRICT LIABILITY ($3,000 to $100,000+); radon mitigation $1,500-$2,000.
Mitigation: Licensed electrician report on all 4 levels (K&T + insurability letter) BEFORE removing inspection contingency; lead inspection (Property Transfer Lead Notification is mandatory pre-P&S for pre-1978); GPR tank sweep; radon test; asbestos survey. Obtain a homeowners/landlord insurance commitment before the mortgage commitment date.
Malden lead service line crisis: city EXCEEDED the EPA lead action level (17.9 ppb vs 15 ppb), formal Drinking Water Notice issued Oct 7, 2025. Malden ordinance (9.24.010) requires a $25 lead-free Water Service Certification before transfer/rental cert.
Impact: Private-side lead line replacement is $3,000-$15,000+ and, per ordinance, the SELLER funds private-side replacement at transfer; failure to resolve can delay or collapse closing.
Mitigation: Check Malden's ArcGIS lead-service-line map and order the Engineering Dept. certification. Make a lead-free (or seller-funded replacement) certification a closing condition.
Assessed value overstated in the listing chain. MLS/aggregators cite ~$765,000; the official Malden assessor database shows ~$725,000 (verified, refuting the higher figure).
Impact: The 'priced just above assessed' narrative is wrong — list is meaningfully above the true assessed value, not just modestly above as the refuted figure would suggest. Slightly weakens any value-justification argument; also means tax/escrow modeling should anchor to ~$725,000.
Mitigation: Use ~$725,000 as the assessment anchor in valuation and tax proration. Treat the implied tax rate discrepancy (~$11.60 vs city-stated $11.40) as an open item — confirm whether the ~$8,900 bill includes the 1% CPA surcharge.
Malden HAS adopted the Community Preservation Act (1% surcharge, since Nov 2015) — contrary to the task's stated prior belief. Mandatory rental registration/inspection at every tenancy turnover (MCC 9.16) and STR effectively prohibited for non-owner-occupants.
Impact: CPA adds ~$100/yr ongoing. Rental-inspection regime adds recurring cost ($25/unit/yr + inspection each turnover, $100/day penalties) and access/scheduling friction across multiple month-to-month units. Any Airbnb/STR income thesis is non-viable for a non-owner-occupant.
Mitigation: Build CPA and annual registration/inspection costs into the operating pro forma. Abandon any STR underwriting. Confirm no outstanding violations/arrears (which would block rental inspection certificates).
Nearby environmental sites identified in research: a National Grid manufactured-gas-plant (MGP) site with an open MassDEP remediation (benzene/naphthalene/NAPL) and a separate AUL-encumbered site, both somewhere in the general vicinity.
Impact: Plume migration is reported to trend toward the river (away from the property), so direct impact is unlikely, but a mature MGP plume in the general vicinity is not trivially far and could surface in a Phase I as a consideration.
Mitigation: Commission a Phase I ESA (ASTM E1527-21); run the MassDEP waste-site radius search and a Registry AUL search. Phase II only if RECs are flagged.
Owner-of-record and chain of title not confirmable from public web sources; aggregator sale-history data (an earlier prior-owner sale and a separate later sale, per aggregator records) is inconsistent and likely erroneous.
Impact: Title/lien uncertainty until a full Registry search is run; risk of an undischarged mortgage or lien needing payoff at closing.
Mitigation: Buyer's attorney runs a full title search at Middlesex South Registry of Deeds (name + parcel) and orders a Municipal Lien Certificate ($25). Standard for closing — low residual risk once done.
This is research assistance, not legal/financial/real-estate advice. Verify all material facts with primary sources and a licensed MA attorney before acting.
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