112 Durham Rd

Freeport, ME 04032

$419,000D-

2 bd · 1.5 ba · 1,514 sqft · Built 1790 · SingleFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,508/mo
• Mortgage (P&I): −$2,197
• Tax + insurance: −$678
• HOA: −$0
• Vac / Maint / Mgmt: −$527
• Net cashflow: $-894/mo
• Annual: $-10,726/yr
• Cap rate: 3.73%
• Cash-on-cash: -9.14%
• DSCR: 0.59
• 1% rule: 0.60%
• Cash to close: $117,320

Investor read

• This is a 2-bed/1.5-bath single-family listed at $419k.
• At list price, monthly cash flow is $-894 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $261k (37.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $251k (40.1% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $251k (40.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 89/100 on livability (#2 in ME, #111 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, health & safety A+; Watch: employment D+.
• RSU 05 (suburban): math 92% / reading 94% proficiency, ranked #12 of 112 in ME (top 11%) — strong family-tenant draw, lease renewals of 3-5y typical; only 18% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1790 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 45 active listings in the ZIP; solid renter incomes; 1,405 units permitted in Cumberland County in 2024 (420 in 5+ unit buildings).
• Cumberland County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.7% vs local median 2.0% in Freeport — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Built in 1790 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.