16 Larboard Ln #6

Kennebunk, ME 04043

$649,000A-

3 bd · 2.5 ba · 1,872 sqft · Built 1987 · Condo · Active · 186 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,628/mo
• Mortgage (P&I): −$3,403
• Tax + insurance: −$1,082
• HOA: −$520
• Vac / Maint / Mgmt: −$2,442
• Net cashflow: $4,181/mo
• Annual: $50,172/yr
• Cap rate: 14.02%
• Cash-on-cash: 27.61%
• DSCR: 2.23
• 1% rule: 1.79%
• Cash to close: $181,720

Investor read

• This is a 3-bed/2.5-bath condo listed at $649k. Condition is rated fair.
• At list price, monthly cash flow is $4k ($50k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $649k).
• It's been on market 186 days — a 12% lower offer ($571k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $571k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#20 in ME, #2,049 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: cost of living D+, amenities F, commute F.
• RSU 21 (rural): math 91% / reading 94% proficiency, ranked #13 of 112 in ME (top 12%) — strong family-tenant draw, lease renewals of 3-5y typical; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Kennebunk Elementary School (358 students, 9% FRL); Middle School of The Kennebunks (math 92% / reading 96%, grade A+, #5 of 85 statewide, top 5%, 479 students, 11% FRL); Kennebunk High School (math 98% / reading 92%, grade A+, #18 of 108 statewide, top 22%, 756 students, 11% FRL).
• Market conditions: 182 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 1,386 units permitted in York County in 2024 (338 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $182k cash investment doubles in ~5 years — after that, you're playing with house money.
• Climate carrying-cost: major wind risk, 67% chance of damaging wind over 30y; extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 14.0% vs local median 2.5% in Kennebunk — 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.
• At $11,628/mo this rent would consume 138% of the median local household income ($101k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 186 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Snow and potential ice dam
• Major: exterior — Snow and potential ice dam