9 Hoffman's Way

Bath, ME 04548

$625,000F

3 bd · 3.0 ba · 2,645 sqft · Built 1998 · SingleFamily · Pending · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,577/mo
• Mortgage (P&I): −$3,278
• Tax + insurance: −$1,042
• HOA: −$0
• Vac / Maint / Mgmt: −$331
• Net cashflow: $-3,073/mo
• Annual: $-36,877/yr
• Cap rate: 0.39%
• Cash-on-cash: -21.07%
• DSCR: 0.06
• 1% rule: 0.25%
• Cash to close: $175,000

Investor read

• This is a 3-bed/3.0-bath single-family listed at $625k.
• At list price, monthly cash flow is $-3k ($-37k/yr) — negative.
• To cash-flow at today's rent, offer at most $180k (71.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $158k (74.8% below list).
• It's been on market 64 days — a 6% lower offer ($588k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $158k (74.8% below list) — sets the bar for 1% rule.
• In year one you build about $67k of equity ($4k loan paydown + $62k appreciation (10.0% local appreciation)).
• Location reads 70/100 on livability (#70 in ME) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• 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).
• 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.
• By year 2, paydown + projected appreciation supports a ~$107k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wind risk, 66% 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 64 days. Have you received any prior offers? Is the seller open to a 75% concession, seller financing, or rate buy-down credit?
• 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?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?
• What's the documented flood / surge / shoreline-erosion history here (FEMA AND non-FEMA — e.g., storm surge, creek backup, septic-field saturation)?
• Any water-quality or seasonal algae-bloom issues that affect tenant satisfaction or short-term-rental demand?