10010 Ridgeline Dr

Montgomery Village, MD 20886

$369,999D

4 bd · 2.5 ba · 1,515 sqft · Built 1977 · Townhouse · Active · 66 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,028/mo
• Mortgage (P&I): −$1,940
• Tax + insurance: −$465
• HOA: −$95
• Vac / Maint / Mgmt: −$636
• Net cashflow: $-108/mo
• Annual: $-1,299/yr
• Cap rate: 5.94%
• Cash-on-cash: -1.25%
• DSCR: 0.94
• 1% rule: 0.82%
• Cash to close: $103,600

Investor read

• This is a 4-bed/2.5-bath townhouse listed at $370k.
• At list price, monthly cash flow is $-108 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $351k (5.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $303k (18.2% below list).
• It's been on market 66 days — a 6% lower offer ($348k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $303k (18.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-1.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#318 in MD) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: crime D-, amenities F, commute 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: Whetstone Elementary (math 12% / reading 11%, grade F, #567 of 860 statewide, top 67%, 715 students, 75% FRL); Montgomery Village Middle (math 3% / reading 25%, grade F, #196 of 225 statewide, top 88%, 773 students, 80% FRL); Watkins Mill High (math 20% / reading 51%, grade F, #144 of 222 statewide, top 65%, 1,715 students, 74% FRL) — zoned schools average 77% FRL vs 26% district-wide (50 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 20% at this address vs 36% district-wide (-16 pts) — the specific schools serving this property underperform the Montgomery County Public Schools average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising fast (+4.3%/yr); 128 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); 42% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 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.
• 4 sale attempts since 23y 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.
• Current owner paid $239k; list at $370k implies a 55% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 4.2% in Montgomery Village — 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.
• This rent runs 37% of the median local income ($99k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 66 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?