12 Spruce Gum Ln

Georgetown, ME 04548

$359,900D

2 bd · 1.0 ba · 1,200 sqft · Built 1950 · MultiFamily · Active · 66 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,264/mo
• Mortgage (P&I): −$1,887
• Tax + insurance: −$231
• HOA: −$0
• Vac / Maint / Mgmt: −$265
• Net cashflow: $-1,120/mo
• Annual: $-13,439/yr
• Cap rate: 2.56%
• Cash-on-cash: -13.34%
• DSCR: 0.41
• 1% rule: 0.35%
• Cash to close: $100,772

Investor read

• This is a 2-bed/1.0-bath multifamily listed at $360k.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative.
• To cash-flow at today's rent, offer at most $162k (55.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $126k (64.9% below list).
• It's been on market 66 days — a 6% lower offer ($338k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $126k (64.9% below list) — sets the bar for 1% rule.
• In year one you build about $38k of equity ($2k loan paydown + $36k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Georgetown Public Schools (rural): math 95% / reading 95% proficiency, ranked #9 of 112 in ME (top 8%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Georgetown Central School (math 90% / reading 90%, grade A+, #42 of 294 statewide, top 17%, 51 students, 31% FRL).
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 16 active listings in the ZIP; 193 units permitted in Sagadahoc County in 2024 (56 in 5+ unit buildings).
• Sagadahoc County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 4y ago; this cycle's ask has dropped $19k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$62k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 68% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.

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 65% concession, seller financing, or rate buy-down credit?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.
• 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.