419 Larchmont Ave

Capitol Heights, MD 20743

$315,900D

3 bd · 2.5 ba · 1,344 sqft · Built 1948 · SingleFamily · Active · 89 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,820/mo
• Mortgage (P&I): −$1,657
• Tax + insurance: −$618
• HOA: −$0
• Vac / Maint / Mgmt: −$592
• Net cashflow: $-47/mo
• Annual: $-562/yr
• Cap rate: 6.11%
• Cash-on-cash: -0.64%
• DSCR: 0.97
• 1% rule: 0.89%
• Cash to close: $88,452

Investor read

• This is a 3-bed/2.5-bath single-family listed at $316k.
• At list price, monthly cash flow is $-47 ($-562/yr) — negative.
• To cash-flow at today's rent, offer at most $308k (2.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $282k (10.7% below list).
• It's been on market 89 days — a 6% lower offer ($297k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $282k (10.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#155 in MD) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, health & safety A; Watch: crime C-, amenities F, cost of living F.
• Prince George'S County Public Schools (suburban): math 8% / reading 24% proficiency, ranked #21 of 24 in MD (top 88%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: William W. Hall Academy (math 3% / reading 15%, grade F, #650 of 860 statewide, top 77%, 496 students, 83% FRL); Central High (math 12% / reading 37%, grade F, #163 of 222 statewide, top 75%, 877 students, 74% FRL) — zoned schools average 78% FRL vs 53% district-wide (25 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.9%/yr); 215 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,481 units permitted in Prince George's County in 2024 (0 in 5+ unit buildings).
• Prince George's County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 9 sale attempts since 4y ago; this cycle's ask has dropped $59k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: moderate wind risk, 24% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 44% of the median local income ($76k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• It's been on market 89 days. Have you received any prior offers? Is the seller open to a 11% concession, seller financing, or rate buy-down credit?
• Built in 1948 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.