14526 Mcmullen Hwy SW

Cresaptown, MD 21502

$119,900B

3 bd · 1.5 ba · 1,560 sqft · Built 1936 · MultiFamily · Active · 344 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,688/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$134
• HOA: −$0
• Vac / Maint / Mgmt: −$564
• Net cashflow: $1,361/mo
• Annual: $16,331/yr
• Cap rate: 19.91%
• Cash-on-cash: 48.65%
• DSCR: 3.16
• 1% rule: 2.24%
• Cash to close: $33,572

Investor read

• This is a 3-bed/1.5-bath multifamily listed at $120k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($16k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $120k).
• It's been on market 344 days — a 12% lower offer ($106k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $829 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 56/100 on livability (#411 in MD) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing B+; Watch: employment C-, schools F, crime F.
• Allegany County Public Schools (other): math 15% / reading 30% proficiency, ranked #18 of 24 in MD (top 75%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1936 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+10.9%/yr); 235 active listings in the ZIP; 24 units permitted in Allegany County in 2024 (0 in 5+ unit buildings).
• Allegany County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $34k cash investment doubles in ~3 years — after that, you're playing with house money.
• At $2,688/mo this rent would consume 53% of the median local household income ($61k/yr) (locally 824% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 344 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1936 — 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.
• 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 F 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition, with visible wear and tear.
• Moderate: exterior siding — The exterior siding appears to be in fair condition, with some discoloration and wear.
• Minor: flooring — The flooring in the interior appears to be in average condition, with some wear and tear visible.
• Minor: interior walls/paint — The interior walls and paint appear to be in average condition, with some discoloration and wear.
• Minor: bathrooms — The bathrooms appear to be in fair condition, with some wear and tear visible.
• Minor: HVAC and mechanical systems — The HVAC and mechanical systems appear to be in fair condition, with some wear and tear visible.