8510 Schultz Rd

Clinton, MD 20735

$399,500F

3 bd · 2.0 ba · 1,101 sqft · Built 1987 · SingleFamily · Pending · 29 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,753/mo
• Mortgage (P&I): −$2,095
• Tax + insurance: −$695
• HOA: −$0
• Vac / Maint / Mgmt: −$578
• Net cashflow: $-615/mo
• Annual: $-7,383/yr
• Cap rate: 4.61%
• Cash-on-cash: -6.00%
• DSCR: 0.73
• 1% rule: 0.69%
• Cash to close: $111,860

Investor read

• This is a 3-bed/2.0-bath single-family listed at $400k.
• At list price, monthly cash flow is $-615 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $291k (27.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $275k (31.1% below list).
• It's been on market 29 days — a 2% lower offer ($394k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $275k (31.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#304 in MD) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: crime D+, amenities F, commute 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: James Ryder Randall Elementary (math 2% / reading 8%, grade F, #766 of 860 statewide, top 93%, 254 students, 80% FRL); Stephen Decatur Middle (math 3% / reading 24%, grade F, #198 of 225 statewide, top 88%, 781 students, 70% FRL); Surrattsville High (math 2% / reading 27%, grade F, #185 of 222 statewide, top 85%, 772 students, 60% FRL) — zoned schools average 70% FRL vs 53% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: 124 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 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.
• Current owner paid $155k; list at $400k implies a 157% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe flood risk; moderate wind risk, 25% 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.

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?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.