215 Hammond St

Westernport, MD 21562

$104,000B-

4 bd · 2.0 ba · 2,878 sqft · Built 1885 · Townhouse · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,173/mo
• Mortgage (P&I): −$545
• Tax + insurance: −$165
• HOA: −$0
• Vac / Maint / Mgmt: −$246
• Net cashflow: $217/mo
• Annual: $2,602/yr
• Cap rate: 8.79%
• Cash-on-cash: 8.94%
• DSCR: 1.40
• 1% rule: 1.13%
• Cash to close: $29,120

Investor read

• This is a 4-bed/2.0-bath townhouse listed at $104k.
• At list price, monthly cash flow is $217 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $104k).
• It's been on market 40 days — a 3% lower offer ($101k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $101k (3.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($719 loan paydown + $1k 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: built in 1885 — 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.
• 6 sale attempts since 29y ago; this cycle's ask has dropped $6k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $72k; 44% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (1.3% appreciation + 3.0% rent growth), your $29k cash investment doubles in ~6 years — after that, you're playing with house money.
• Climate carrying-cost: 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 40 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1885 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.