9 Settlers Ct #9

North Windham, ME 04062

$289,900D

2 bd · 2.0 ba · 1,668 sqft · Built 1986 · Condo · Pending · 43 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,375/mo
• Mortgage (P&I): −$1,520
• Tax + insurance: −$483
• HOA: −$374
• Vac / Maint / Mgmt: −$499
• Net cashflow: $-501/mo
• Annual: $-6,014/yr
• Cap rate: 4.22%
• Cash-on-cash: -7.41%
• DSCR: 0.67
• 1% rule: 0.82%
• Cash to close: $81,172

Investor read

• This is a 2-bed/2.0-bath condo listed at $290k.
• At list price, monthly cash flow is $-501 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $217k (25.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $238k (18.1% below list).
• It's been on market 43 days — a 3% lower offer ($281k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $217k (25.0% below list) — sets the bar for cash-flow.
• 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 79/100 on livability (#19 in ME, #2,024 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: commute D, amenities F.
• RSU 14 (rural): math 82% / reading 84% proficiency, ranked #55 of 112 in ME (top 49%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Windham Primary School (math 82% / reading 87%, grade A+, #106 of 294 statewide, top 50%, 762 students, 26% FRL); Windham Middle School (math 90% / reading 70%, grade A+, #62 of 85 statewide, top 73%, 562 students, 26% FRL); Windham High School (math 90% / reading 70%, grade A, #96 of 108 statewide, top 91%, 978 students, 22% FRL) — zoned schools at 24% FRL track the district average.
• Market conditions: 129 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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 since 16y ago 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.
• Current owner paid $117k; list at $290k implies a 148% gain — meaningful room to come down on a strong offer.
• Cap rate 4.2% vs local median 2.2% in North Windham — 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?
• It's been on market 43 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• 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?
• 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.