523-525 Maryland Ave

Westernport, MD 21562

$75,000B+

4 bd · 0.0 ba · 1,524 sqft · Built 1919 · MultiFamily · Active · 89 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,910/mo
• Mortgage (P&I): −$393
• Tax + insurance: −$181
• HOA: −$0
• Vac / Maint / Mgmt: −$401
• Net cashflow: $935/mo
• Annual: $11,221/yr
• Cap rate: 22.14%
• Cash-on-cash: 56.61%
• DSCR: 3.52
• 1% rule: 2.55%
• Cash to close: $21,000

Investor read

• This is a 2 × 2-bed/1-bath units multifamily listed at $75k. Condition is rated fair.
• At list price, monthly cash flow is $935 ($11k/yr) — positive. Per door: $468/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $75k).
• It's been on market 89 days — a 6% lower offer ($70k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $70k (6.0% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($519 loan paydown + $964 appreciation (1.3% local appreciation)).
• Location reads 69/100 on livability (#188 in MD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: amenities F, commute F, employment D-.
• Allegany County Public Schools (other): math 15% / reading 30% proficiency, ranked #18 of 24 in MD (top 75%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Westernport Elementary (math 12% / reading 22%, grade F, #408 of 860 statewide, top 50%, 261 students, 65% FRL); Westmar Middle (math 6% / reading 30%, grade F, #165 of 225 statewide, top 75%, 232 students, 70% FRL); Mountain Ridge High School (math 32% / reading 72%, grade D+, #100 of 222 statewide, top 47%, 736 students, 48% FRL).
• Watch-outs: flood insurance adds $56/mo; built in 1919 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 23 active listings in the ZIP; 24 units permitted in Allegany County in 2024 (0 in 5+ unit buildings).
• Allegany County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 2y 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.
• At projected returns (1.3% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk; extreme-heat days projected 8→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 89 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1919 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — The cabinets appear to be older and could benefit from a fresh coat of paint or replacement.
• Minor: Bathroom fixtures — The fixtures in the bathroom could be updated for a more modern look and functionality.
• Minor: Exterior siding — The siding appears to be in fair condition, but a thorough inspection would be needed to determine if any repairs are necessary.
• Minor: Landscaping — The landscaping is somewhat overgrown and could benefit from trimming and maintenance.