Understanding SFH rentals in the metro west of Boston

[Adam Conrad]

Hey everyone,

My plan is to take my current SFH and rent it out. It's in Dover, MA, which is an affluent town that's more focused on purchases than rentals. But, when people rent, the rental income is very good.

Based on my current projections and my rental agent's pricing of our home (priced at market, not looking to chase anything delusional here), I'm looking at around a 7% cap rate, 50% IRR, and 15% COCR. With a 2.7% mortgage, this feels like a really good deal, especially when the statewide vacancy rate of 3.2%.

The home has been listed for about a week and the interest has been soft/unexpected: someone for a 12 month lease didn't pass the tenant check, someone asked for a 3 month lease because they have to be out of their home for upgrades. Another person wants to do a possible 48 month lease but not until January. So interest and duration is all over the place.

I'm thinking maybe I need some perspective from people who rent SFH out in the burbs. Should I expect shorter-term rentals? Repricing? Higher vacancy rates?

This isn't your average multifamily in a hot urban area. I see that this requires a different calculus to get right. Hoping to hear from others experienced in this kind of rental to shed some light on what I should prepare for and strategies to keep it rented.