2 Grace Ann

Darlington, MD 21918

$109,900B

3 bd · 2.0 ba · 1,600 sqft · Built 2002 · SingleFamily · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,345/mo
• Mortgage (P&I): −$576
• Tax + insurance: −$183
• HOA: −$0
• Vac / Maint / Mgmt: −$282
• Net cashflow: $303/mo
• Annual: $3,633/yr
• Cap rate: 9.60%
• Cash-on-cash: 11.80%
• DSCR: 1.53
• 1% rule: 1.22%
• Cash to close: $30,772

Investor read

• This is a 3-bed/2.0-bath single-family listed at $110k. Condition is rated good.
• At list price, monthly cash flow is $303 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $110k).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $760 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#241 in MD) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: crime C-, amenities F, commute F.
• Cecil County Public Schools (rural): math 15% / reading 30% proficiency, ranked #15 of 24 in MD (top 62%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Conowingo Elementary (math 17% / reading 17%, grade F, #408 of 860 statewide, top 50%, 388 students, 45% FRL); Rising Sun Middle School (math 12% / reading 36%, grade F, #114 of 225 statewide, top 52%, 619 students, 38% FRL); Rising Sun High (math 50% / reading 72%, grade C+, #65 of 222 statewide, top 31%, 1,106 students, 33% FRL) — zoned schools at 39% FRL track the district average.
• Market conditions: 49 active listings in the ZIP; 563 units permitted in Cecil County in 2024 (330 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~10 years — after that, you're playing with house money.
• Cap rate 9.6% vs local median 2.7% in Darlington — 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

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.