5258 Preston Rd · Federalsburg, MD 21632

$225,000

4 bd · 1.0 ba · 1,350 sqft · SingleFamily public records · 25 Days on market

Built 1960 0.38 ac lot Est $281k · 20% under

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Why this score? — see what drove the D+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Cash flow +13.1/30.0
• DSCR +3.9/10.0
• Appreciation +3.9/10.0
• Livability +3.2/5.0
• 1% rule +2.9/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.9/10.0

Listing remarks MLS

4 bedrooms 1 bathroom bungalow being sold "AS IS". 16,700 sq. ft. with detached garage. Electric will probably need upgrading. Priced to Sell.

Key facts

• Bungalow
• Detached garage
• 0.38 acre lot

Tags

• BUNGALOW
• DETACHED GARAGE
• UPDATED ELECTRIC SERVICE

Property features AI

Exterior

• Parking: Detached garage (front entry) with automatic opener; Driveway; One total garage/parking space
• Utilities: Well water; On-site septic system (gravity septic field); Propane service; Electric service
• Home design: Detached structure
• Construction: Frame construction; Metal roof; Block foundation with crawl space; Average condition
• Exterior features: Level entry to main floor; Road frontage; Rural setting; Basement present (other type); Finished area below grade (120 sq ft reported); Above-grade finished living area reported

Interior

• Kitchen: Electric oven/range; Refrigerator
• Bedrooms: Two bedrooms on the main level; Two bedrooms on the upper level
• Flooring: Wood flooring
• Bathrooms: One full bathroom (main level)
• Heating & cooling: 90% efficient forced air heating; Propane (owned) fuel for heating; Central air conditioning; Electric hot water
• Interior features: Stall shower; Combination kitchen/dining; Eat-in kitchen with table space; Wood floors; Not furnished
• Laundry & utility: Washer and dryer in unit; Washer and dryer hookups on the main floor; Water heater

What this means for you Summary

Snapshot

• This is a 4-bed/1.0-bath single-family listed at $225k.

Deal economics

• At list price, monthly cash flow is $-10 ($-122/yr) — negative.
• To cash-flow at today's rent, offer at most $223k (0.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $178k (21.1% below list).
• Recommended offer: $178k (21.1% below list) — sets the bar for 1% rule.
• Cap rate 6.2% vs local median 4.8% in Federalsburg — 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.

Location & tenants

• Location reads 65/100 on livability (#266 in MD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A, health & safety A; Watch: housing C-, schools F, amenities F.
• Caroline County Public Schools (rural): math 13% / reading 29% proficiency, ranked #17 of 24 in MD (top 71%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 46 active listings in the ZIP; 59 units permitted in Caroline County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-2.2%/yr); year-one equity from $2k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Caroline County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 25 days — a 2% lower offer ($222k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 4y 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 $106k; list at $225k implies a 112% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Climate carrying-cost: major wind risk, 59% chance of damaging wind over 30y; extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $177,512 (21.1% below list)

Questions for the listing agent

1. 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?
2. Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 0.79% ✗
• Cap rate: 6.24%
• Cash-on-cash: -0.19%
• DSCR: 0.99
• GRM: 10.6

CMA / ARV

• ARV (on-the-fly): $280,800
• Comps found: 1

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
618 Academy Ave	0.69mi	3/1.0 (-1)	1,344 (-0%)	0mo	$280,000	$208	62

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-2.22% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -12.2%
• Equity multiple: 0.53×
• Total profit: $-29,777
• Equity at exit: $41,409

10-year hold

• IRR: -4.3%
• Equity multiple: 0.67×
• Total profit: $-20,492
• Equity at exit: $33,229

Cash invested: $63,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 27 Tenant-Leaning
• State Maryland: 27 Tenant-Leaning · D+14
• County: — inherits STATE
• City: — inherits STATE

Failure-to-pay is dismissed if cured before judgment; Baltimore has just-cause; strict deposit rules.

Methodology + full state rankings →

ZIP-level market 21632

• Home prices YoY: -0.7%
• Active inventory: 46
• Price-to-rent: 10.6×

Monthly cashflow live

• Estimated rent: $1,775 medium
• Mortgage (P&I): −$1,180
• Tax from tax record: −$139 /mo · $1,666/yr
• Insurance: −$94
• HOA: −$0
• Vacancy / Maint / Mgmt: −$373
• Net cashflow: $-10

Break-even live

Break-even rent $1,788

Max offer price $223,211

Occupancy floor 96%

Sensitivity live

Price	-10% $117	-5% $54	+0% $-10	+5% $-74	+10% $-137
Rent	-10% $-150	-5% $-80	+0% $-10	+5% $60	+10% $130
Rate	-1.0pp $103	-0.5pp $47	base $-10	+0.5pp $-68	+1.0pp $-128

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $56,250
• Closing costs: $6,750
• Reserves months: —
• Total cash needed: —

Listing history 22 events

1. 2026-06-21
   days on market $225,000 Active 25 DOM
2. 2026-06-18
   days on market $225,000 Active 23 DOM
3. 2026-06-17
   days on market $225,000 Active 22 DOM
4. 2026-06-16
   days on market $225,000 Active 21 DOM
5. 2026-06-15
   days on market $225,000 Active 20 DOM
6. 2026-06-13
   days on market $225,000 Active 18 DOM
7. 2026-06-12
   days on market $225,000 Active 17 DOM
8. 2026-06-09
   days on market $225,000 Active 14 DOM
9. 2026-06-08
   days on market $225,000 Active 13 DOM
10. 2026-06-07
    days on market $225,000 Active 12 DOM
11. 2026-06-07
    days on market $225,000 Active 11 DOM
12. 2026-06-04
    days on market $225,000 Active 8 DOM
13. 2026-06-02
    days on market $225,000 Active 7 DOM
14. 2026-06-01
    days on market $225,000 Active 6 DOM
15. 2026-05-31
    days on market $225,000 Active 5 DOM
16. 2026-05-31
    days on market $225,000 Active 4 DOM
17. 2026-05-26
    listed $225,000 Active
18. 2022-09-15
    soldstatus $106,250
19. 2022-09-14
    soldstatus $106,250 Closed 152-char remark

    Show marketing remark (152 chars)

    4 bedrooms 1 bathroom bungalow being sold "AS IS". 16,700 sq. ft. with detached garage. Electric will probably need upgrading. Priced to Sell.

20. 2022-09-02
    status Pending 152-char remark

    Show marketing remark (152 chars)

    4 bedrooms 1 bathroom bungalow being sold "AS IS". 16,700 sq. ft. with detached garage. Electric will probably need upgrading. Priced to Sell.

21. 2022-07-14
    historical Active Under Contract 152-char remark

    Show marketing remark (152 chars)

    4 bedrooms 1 bathroom bungalow being sold "AS IS". 16,700 sq. ft. with detached garage. Electric will probably need upgrading. Priced to Sell.

22. 2022-06-15
    listed $150,000 Active 152-char remark

    Show marketing remark (152 chars)

    4 bedrooms 1 bathroom bungalow being sold "AS IS". 16,700 sq. ft. with detached garage. Electric will probably need upgrading. Priced to Sell.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MD · Partial reset (capped growth)

• Current annual tax: $1,666 · $139/mo
• Projected year-2 tax: $2,059 · $172/mo
• Expected delta: +$393/yr (+$33/mo · 23.6%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 8/10 Severe 7 d/yr ≥105°F today · 16 d/yr by 30 yrs out
• 💨 Wind 6/10 Major 59% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $21,301
• − Mortgage interest: −$12,603
• − Property taxes: −$1,666
• − Insurance: −$1,125
• − Repairs & maintenance: −$1,704
• − Management: −$1,704
• − Depreciation: −$6,545
• Taxable loss: −$4,046
• Est. tax savings @ 24.0%: +$971
• After-tax cash flow: $850/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Caroline County Public Schools
• NCES district ID: 2400180
• Math proficiency: 13% ▼ -22.00%
• Reading proficiency: 29% ▼ -14.00%
• Median HH income: $55,076
• Composite: 19.16/100
• National rank: #8823
• State rank: #17 of 24 in MD

Livability — Federalsburg

• Score: 65/100
• State rank: #266
• US rank: #13461

Category grades

Amenities F Commute F Cost of living A+ Crime A Employment F Housing C- Health & safety A User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Population (ZIP): 6,227

Population outlook (Caroline County) Hauer SSP2

• Today (2025): 31,205 people
• By 2030: 30,204 · -3.2%
• By 2040: 27,866 · -10.7%
• By 2050: 25,342 · -18.8%
• By 2075: 20,554 · -34.1%
• By 2100: 17,415 · -44.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Majority White (65%)
• Race & ethnicity: White 65% Black 25% Two or more races 6% Hispanic / Latino 3% Asian 2% Native American 2%
• Common ancestry: Romanian 2% Serbian 2% Lithuanian 1%
• Foreign-born: 6% · Canada
• Languages at home: 92% English-only · Spanish 2% Other Indo-European 2% French/Haitian/Cajun 1%

Political lean MEDSL · Caroline

• 2024 margin: Solid R (+38.0) · D 29.9% · R 67.9% · Other 2.2%
• 2008→2024 swing: -15.0pp toward R · 2008: -23.0pp · 2024: -38.0pp
• All cycles: 2024: R+38.0 2020: R+32.9 2016: R+39.5 2012: R+24.4 2008: R+23.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -2.22%
• Current HPI: 301.4384
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.97%
• F500 in state: 12

Industry mix (Fortune 500 HQ in MD)

Industry	F500 HQs	Revenue
▸Aerospace / Defense	1	$71B
▸Utilities	1	$25B
▸Hotels	1	$24B
▸Consumer Goods	1	$7B
▸Real Estate	1	$6B
▸Chemicals	1	$2B

Price history

+50.0% since first listed

6 events — show timeline

• 2026-05-26 Listed $225,000 BRIGHT MLS
• 2022-09-15 Sold (Public Records) $106,250 Public Records
• 2022-09-14 Sold (MLS) $106,250 BRIGHT MLS
• 2022-09-02 Pending — BRIGHT MLS
• 2022-07-14 Contingent — BRIGHT MLS
• 2022-06-15 Listed $150,000 BRIGHT MLS

Property tax history

+2.4%/yr

Latest (2025): $1,666 · +10.8% YoY. Source: county tax records.