240 Hersom Rd

Mars Hill, ME 04740

$155,000D

3 bd · 1.5 ba · 1,632 sqft · Built 2007 · MultiFamily · Active · 101 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,373/mo
• Mortgage (P&I): −$813
• Tax + insurance: −$403
• HOA: −$0
• Vac / Maint / Mgmt: −$288
• Net cashflow: $-131/mo
• Annual: $-1,576/yr
• Cap rate: 5.28%
• Cash-on-cash: -3.63%
• DSCR: 0.84
• 1% rule: 0.89%
• Cash to close: $43,400

Investor read

• This is a 3-bed/1.5-bath multifamily listed at $155k.
• At list price, monthly cash flow is $-131 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $132k (15.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $137k (11.4% below list).
• It's been on market 101 days — a 9% lower offer ($141k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $132k (15.0% below list) — sets the bar for cash-flow.
• In year one you build about $4k of equity ($1k loan paydown + $3k appreciation (2.1% local appreciation)).
• Location reads 71/100 on livability (#67 in ME) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: amenities F, commute F, employment D-.
• Easton Public Schools (rural): math 45% / reading 65% proficiency, ranked #39 of 185 in ME (top 21%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Easton Elementary School (math 87% / reading 87%, grade A+, #77 of 294 statewide, top 33%, 115 students, 36% FRL); Easton Junior-Senior High Sch (math 95% / reading 95%, grade A+, #12 of 108 statewide, top 15%, 93 students, 29% FRL) — zoned schools at 32% FRL track the district average.
• Zoned-school proficiency averages 91% at this address vs 55% district-wide (+36 pts) — the actual schools serving this property are materially stronger than the Easton Public Schools average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: property tax is 2.6% of price.
• Market conditions: 7 active listings in the ZIP; 112 units permitted in Aroostook County in 2024 (45 in 5+ unit buildings).
• Aroostook County population projected at -33% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 8, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 101 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 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?
• 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.