23313 Sugar Maple Ct Unit 2C

Wildewood, MD 20619

$220,000D

2 bd · 1.5 ba · 936 sqft · Built 1985 · Condo · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,091/mo
• Mortgage (P&I): −$1,154
• Tax + insurance: −$367
• HOA: −$300
• Vac / Maint / Mgmt: −$439
• Net cashflow: $-168/mo
• Annual: $-2,021/yr
• Cap rate: 5.37%
• Cash-on-cash: -3.28%
• DSCR: 0.85
• 1% rule: 0.95%
• Cash to close: $61,600

Investor read

• This is a 2-bed/1.5-bath condo listed at $220k.
• At list price, monthly cash flow is $-168 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $196k (11.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $209k (4.9% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $196k (11.1% below list) — sets the bar for cash-flow.
• In year one you build about $7k of equity ($2k loan paydown + $5k appreciation (2.3% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• St. Mary'S County Public Schools (rural): math 23% / reading 38% proficiency, ranked #8 of 24 in MD (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Evergreen Elementary School (math 32% / reading 32%, grade F, #176 of 860 statewide, top 21%, 736 students, 24% FRL); Esperanza Middle (math 18% / reading 41%, grade F, #67 of 225 statewide, top 32%, 875 students, 41% FRL); Leonardtown High (math 59% / reading 76%, grade B, #48 of 222 statewide, top 22%, 2,039 students, 21% FRL) — zoned schools at 29% FRL track the district average.
• Zoned-school proficiency averages 43% at this address vs 30% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the St. Mary'S County Public Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents rising fast (+6.7%/yr); 66 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 265 units permitted in St. Mary's County in 2024 (0 in 5+ unit buildings).
• St. Mary's County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.4% vs local median 3.9% in Wildewood — 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?
• 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.
• 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.