5 Lake Brook Dr

Kennebunk, ME 04043

$1,795,000F

4 bd · 3.5 ba · 3,634 sqft · Built 2020 · SingleFamily · Active · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,666/mo
• Mortgage (P&I): −$9,413
• Tax + insurance: −$2,007
• HOA: −$83
• Vac / Maint / Mgmt: −$980
• Net cashflow: $-7,817/mo
• Annual: $-93,808/yr
• Cap rate: 1.07%
• Cash-on-cash: -18.66%
• DSCR: 0.17
• 1% rule: 0.26%
• Cash to close: $502,600

Investor read

• This is a 4-bed/3.5-bath single-family listed at $1.79M.
• At list price, monthly cash flow is $-8k ($-94k/yr) — negative.
• To cash-flow at today's rent, offer at most $414k (76.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $467k (74.0% below list).
• It's been on market 93 days — a 9% lower offer ($1.63M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $414k (76.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $54k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#20 in ME, #2,049 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, employment A+; Watch: cost of living D+, amenities F, commute F.
• RSU 21 (rural): math 91% / reading 94% proficiency, ranked #13 of 112 in ME (top 12%) — strong family-tenant draw, lease renewals of 3-5y typical; only 16% free/reduced lunch — higher-income household profile.
• Market conditions: 132 active listings in the ZIP; 1,386 units permitted in York County in 2024 (338 in 5+ unit buildings).
• 2 sale attempts since 8y ago; this cycle's ask has dropped $105k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $185k; list at $1.79M implies a 870% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 64% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.1% vs local median 3.2% in Kennebunk — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 93 days. Have you received any prior offers? Is the seller open to a 77% 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?
• 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.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.