Prepared for: the owner · Prepared by: Eudy (AI-generated; reviewed and verified by Muhan Zhang before release) · Period: Sep 2025 – Aug 2026, with the full 2011–2026 ledger behind it · Status: PROVISIONAL — every number is an Eudy estimate built from the owner's ledger
| Received | What it is | Used for |
|---|---|---|
| The owner’s hand-kept ledger (报账 .xlsx) | The owner's own running ledger — 528 entries, hand-kept July 2011 → August 2026, in English and Chinese, with a running net column. Almost no owner has this. Record-keeping discipline: A. | Every income and expense actual, and the full 15-year story |
| Still missing | Why it matters |
|---|---|
| Mortgage statement | The ledger's own notes say ~7.25% — the statement splits P&I from any escrow |
| Insurance declaration page | Replaces the $2,000 estimate |
| Water/sewer bills | Replaces the $1,200 estimate |
| New tenant's lease | Confirms the $3,100 and its terms |
| 2021–2024 renovation invoices | Backup for the capital reclass that rewrites the story |
| 6–10 photos | Replaces the listing photo |
Each item you add upgrades an estimate below into a fact.
| Where it is est. annual cash NOI | Where it should be Eudy standard | The gap Found money / yr | Worth at Boston-area caps What closing the gap is worth (3.5–4.5%) |
|---|---|---|---|
| ≈ $19,800 | ≈ $24,700 | ≈ $4,900 | ≈ $110,000–$140,000 |
Greater-Boston small-residential trades at far lower cap rates than the 7% national default — roughly 3.5–4.5% — so every recurring dollar found here is worth 22–29x, not 14x. Cap read to be confirmed against local comps at review.
Property grade: B−. After fifteen years and a $148K rebuild, the building finally earns at its best rent ever — the risk now is that its books still don't know it: a month of rent unrecorded, the mortgage, insurance, and water living off-ledger, and the renovation sitting in the expense column telling everyone a false story of loss.
"Should be" = the new in-place rent ($3,100/mo, the market's own verdict as of Aug 2026) at 6% vacancy, plus rule-of-thumb costs for a renovated single-family. Actuals tie to the ledger; estimated lines are marked.
| Line | Where it is (T12) | Should be | Gap | Read |
|---|---|---|---|---|
| Rent collected | $28,650 | $34,968 | −$6,318 | Old rent most of the year + January unrecorded + July paid from deposit. New rent closes most of this by itself. |
| Property tax | ($5,582) | ($5,582) | — | On the ledger ✓ |
| Insurance | not on ledger — est. ($2,000) | ($2,000) | — | Estimate. Send the dec page. |
| Water / sewer | not on ledger — est. ($1,200) | ($1,200) | — | Estimate. Send the bills. |
| Repairs & reserve | ($100) | ($1,500) | +$1,400 | Post-renovation honeymoon — fund the reserve anyway. |
| NOI (cash, before debt) | ≈ $19,768 | ≈ $24,686 | ≈ −$4,918 |
Reconciliation: ledger income rows sum to $28,650 ✓ · recorded T12 expenses $5,682 ✓ · all other lines are labeled estimates pending documents. Mortgage interest (~$8,900/yr per the ledger's own 2023 note) sits below this line as debt service, not an operating cost.
The dig’s −$148K is renovation-scale capital recorded as operating loss — the reclass in the Plan moves it to the building’s basis. Source: owner’s ledger, 528 entries.
| Era | Years | In | Out | Net |
|---|---|---|---|---|
| The long steady | 2011–2020 | $185,094 | $177,940 | +$7,154 |
| The dig | 2021–2024 | $86,007 | $234,508 | −$148,501 |
| The payoff | 2025–2026 YTD | $50,650 | $18,288 | +$32,362 |
For a decade, the house quietly paid for itself. Then came the dig: four years, $148K of renovation-scale spending, one near-vacant year — all recorded as if it were operating loss. And now the payoff: a rebuilt property renting at $3,100, the highest in its history, with a tenant who paid a pet fee to live there.
The lifetime ledger reads −$133K, and that number is a lie of categorization. Move the rebuild where it belongs — into the building's capital basis — and the truth appears: the owner didn't lose $133K; she invested $148K, and the investment is now performing. That reclass costs $0 and changes everything a lender, a buyer, or her own family sees in these books.
| # | Move | Worth | Effort | Due |
|---|---|---|---|---|
| 1 | Reclass the 2021–24 renovation to capital (with invoices as backup) | $0 cash — rewrites the property's entire story | Low | 30 days |
| 2 | Put the off-book lines on the ledger: mortgage, insurance, water | Truth — the monthly finally shows real cash flow | Low | 30 days |
| 3 | Answer January 2026: missed entry or missed month? | Up to $2,850 | 5 minutes | Now |
| 4 | Rebuild the deposit burned covering July + a simple turn checklist | Protects the next turn | Low | 60 days |
| 5 | Move partner distributions out of the expense column | Clean books | Low | 30 days |
| 6 | Annual rent review each August — the $3,100 proves the method | 3–5%/yr compounding | Low | Rolling |
Every document turns an estimate into a fact and sharpens the grade.
Source: owner's ledger as received (Sheet1, 528 rows), parsed with corrections for text-arithmetic cells and mixed sign conventions. Market rent: the property's own Aug 2026 lease. Cost estimates: Eudy rules of thumb for a renovated single-family, labeled wherever used. Mortgage figure from the ledger's own margin notes. AI-generated; reviewed by Muhan Zhang before release. This is an operating diagnosis built from the owner's records — not an appraisal, not an offer.