102 Kendrick Pl

Gaithersburg, MD 20878

$479,900B-

3 bd · 3.0 ba · 1,668 sqft · Built 1992 · MultiFamily · Active · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,375/mo
• Mortgage (P&I): −$2,517
• Tax + insurance: −$800
• HOA: −$0
• Vac / Maint / Mgmt: −$1,339
• Net cashflow: $1,720/mo
• Annual: $20,637/yr
• Cap rate: 10.59%
• Cash-on-cash: 15.36%
• DSCR: 1.68
• 1% rule: 1.33%
• Cash to close: $134,372

Investor read

• This is a 3-bed/3.0-bath multifamily listed at $480k.
• At list price, monthly cash flow is $2k ($21k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $480k).
• It's been on market 27 days — a 2% lower offer ($473k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $473k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#59 in MD, #2,228 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A+, housing A+; Watch: cost of living F.
• Montgomery County Public Schools (suburban): math 27% / reading 45% proficiency, ranked #3 of 24 in MD (top 12%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rachel Carson Elementary (math 41% / reading 49%, grade D-, #62 of 860 statewide, top 8%, 698 students, 27% FRL); Lakelands Park Middle (math 21% / reading 51%, grade F, #40 of 225 statewide, top 18%, 1,042 students, 34% FRL); Quince Orchard High (math 47% / reading 62%, grade C-, #91 of 222 statewide, top 42%, 2,154 students, 41% FRL).
• Market conditions: Rents soft (-0.3%/yr); 221 active listings in the ZIP; 26 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 58% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 3,880 units permitted in Montgomery County in 2024 (2,054 in 5+ unit buildings).
• Montgomery County population projected at +27% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 18y 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.
• Climate carrying-cost: extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 10.6% vs local median 3.0% in Gaithersburg — 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.
• At $6,375/mo this rent would consume 53% of the median local household income ($144k/yr) (locally 1384% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.