36 S Patten Rd

Patten, ME 04765

$143,500D

4 bd · 1.5 ba · 1,168 sqft · Built 1926 · MultiFamily · Active · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,208/mo
• Mortgage (P&I): −$753
• Tax + insurance: −$226
• HOA: −$0
• Vac / Maint / Mgmt: −$254
• Net cashflow: $-24/mo
• Annual: $-284/yr
• Cap rate: 6.09%
• Cash-on-cash: -0.71%
• DSCR: 0.97
• 1% rule: 0.84%
• Cash to close: $40,180

Investor read

• This is a 4-bed/1.5-bath multifamily listed at $144k.
• At list price, monthly cash flow is $-24 ($-284/yr) — negative.
• To cash-flow at today's rent, offer at most $139k (2.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $121k (15.8% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $121k (15.8% below list) — sets the bar for 1% rule.
• In year one you build about $2k of equity ($992 loan paydown + $1k appreciation (1.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• RSU 89 (rural): math 30% / reading 45% proficiency, ranked #136 of 185 in ME (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Katahdin Elementary School (math 72% / reading 72%, grade A-, #253 of 294 statewide, top 90%, 150 students, 40% FRL); Katahdin Middle/High School (math 87% / reading 92%, grade A+, #56 of 108 statewide, top 60%, 153 students, 42% FRL).
• Zoned-school proficiency averages 81% at this address vs 38% district-wide (+43 pts) — the actual schools serving this property are materially stronger than the RSU 89 average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1926 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 17 active listings in the ZIP; 440 units permitted in Penobscot County in 2024 (40 in 5+ unit buildings).
• Penobscot County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

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 1926 — 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.