4255 Auer Ln

Darlington, MD 21034

$105,000B-

1 bd · 1.0 ba · 574 sqft · Built 1977 · SingleFamily · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,667/mo
• Mortgage (P&I): −$551
• Tax + insurance: −$175
• HOA: −$0
• Vac / Maint / Mgmt: −$350
• Net cashflow: $591/mo
• Annual: $7,097/yr
• Cap rate: 13.05%
• Cash-on-cash: 24.14%
• DSCR: 2.07
• 1% rule: 1.59%
• Cash to close: $29,400

Investor read

• This is a 1-bed/1.0-bath single-family listed at $105k. Condition is rated good.
• At list price, monthly cash flow is $591 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $105k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $726 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#241 in MD) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: crime C-, amenities F, commute F.
• Harford County Public Schools (suburban): math 22% / reading 39% proficiency, ranked #9 of 24 in MD (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Darlington Elementary (math 24% / reading 34%, grade F, #201 of 860 statewide, top 25%, 101 students, 34% FRL); Havre De Grace Middle (math 8% / reading 41%, grade F, #108 of 225 statewide, top 50%, 626 students, 47% FRL); Havre De Grace High (math 47% / reading 62%, grade C-, #91 of 222 statewide, top 42%, 818 students, 40% FRL) — zoned schools average 40% FRL vs 24% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 10 active listings in the ZIP; 803 units permitted in Harford County in 2024 (26 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $29k cash investment doubles in ~6 years — after that, you're playing with house money.
• Cap rate 13.1% vs local median 2.7% in Darlington — 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

• Built in 1977 — 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.
• 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.