12108 Coastal Hwy #404 · Ocean City, MD 21842

$37,000

2 bd · 2.0 ba · 1,093 sqft · Condo public records · 166 Days on market

Built 1987 $600/mo HOA · 24% of rent

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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).

• Cash flow +15.0/30.0
• ARV discount +7.5/15.0
• 1% rule +5.0/10.0
• DSCR +5.0/10.0
• Livability +3.7/5.0
• Schools +3.3/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

The Quarters offers the best and most carefree way to own at the beach! Ocean block location just 2 blocks from the sand and waves with Bay views from your top floor unit. Close to North Side Park, enjoy the fireworks right from your balcony! Your quarter "B" time share provides a rotating schedule of 13 weeks. Completely furnished 2 BR 2 Bath with multiple updates, includes a full kitchen, separate living and dining areas & washer/dryer in unit. The Association Fee takes care of everything from taxes and insurance, electric, maintenance and repairs, linens, and cleaning. You can enjoy all 13 weeks or rent your weeks. Spend your days on the beach and then walk back & enjoy the outdoor pool and pool deck with new deck furniture. Storage closet outside of unit for all your sandy beach toys, chairs etc. Newly installed elevator and covered parking with 2 parking spaces. Just bring your clothes and sunscreen and enjoy having your own oasis at the beach! * Fireplace is wood burning and cannot be used but an electric insert can be installed if desired.

Key facts

• $600 HOA
• 54 garage spots
• Community pool

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath condo listed at $37k.

Deal economics

• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $37k).
• Recommended offer: $33k (12.0% below list) — sets the bar for market timing.
• Cap rate 41.6% vs local median 1.4% in Ocean City — 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 73/100 on livability (#125 in MD) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, schools B+; Watch: cost of living C-, crime F.
• Worcester County Public Schools (town): math 30% / reading 44% proficiency, ranked #6 of 24 in MD (top 25%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 673 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 354 units permitted in Worcester County in 2024 (6 in 5+ unit buildings).
• This rent runs 37% of the median local income ($80k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $256 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Worcester County population projected to shrink 4% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $10k cash investment doubles in ~1 year — after that, you're playing with house money.

Negotiation context

• It's been on market 166 days — a 12% lower offer ($33k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 2y 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.

Risks & watch-outs

• Watch-outs: HOA is 24% of rent.
• Climate carrying-cost: severe wind risk, 80% chance of damaging wind over 30y; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $32,560 (12.0% below list)

Questions for the listing agent

1. It's been on market 166 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
3. Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
7. 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?
8. 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?
9. 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.
10. 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.
11. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 6.65% ✓
• Cap rate: 41.61%
• Cash-on-cash: 126.12%
• DSCR: 6.61
• GRM: 1.3

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: —
• Equity multiple: 7.15×
• Total profit: $63,760
• Equity at exit: $5,517

10-year hold

• IRR: —
• Equity multiple: 15.14×
• Total profit: $146,469
• Equity at exit: $3,199

Cash invested: $10,360 (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 21842

• Home prices YoY: -5.0%
• Active inventory: 673
• Price-to-rent: 1.3×

Monthly cashflow live

• Estimated rent: $2,461 medium
• Mortgage (P&I): −$194
• Tax est. 1.5%: −$46 /mo · $555/yr
• Insurance: −$15
• HOA: −$600
• Vacancy / Maint / Mgmt: −$517
• Net cashflow: $1,089

Break-even live

Break-even rent $1,083

Max offer price $37,000

Occupancy floor 51%

Sensitivity live

Price	-10% $1,114	-5% $1,102	+0% $1,089	+5% $1,076	+10% $1,063
Rent	-10% $894	-5% $992	+0% $1,089	+5% $1,186	+10% $1,283
Rate	-1.0pp $1,107	-0.5pp $1,098	base $1,089	+0.5pp $1,079	+1.0pp $1,070

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: $9,250
• Closing costs: $1,110
• Reserves months: —
• Total cash needed: —

Rent comps 3 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
117 Newport Bay Dr Unit 117C Ocean City, MD	3.0	2.0	936	$2,700	$2.88	44d	1	0.34mi
9207 Rusty Anchor Rd Ocean City, MD	3.0	2.0	1200	$2,500	$2.08	44d	1	1.36mi
745 Mooring Rd #103 Ocean City, MD	2.0	2.0	792	$2,500	$3.16	44d	1	1.50mi

HOA detail condo

• Monthly dues: $600 · $7,200/yr
• Likely covers: electricpool
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 10 events

1. 2026-04-24
   status Pending
2. 2025-11-11
   status Active
3. 2025-10-15
   status Pending
4. 2025-10-13
   listed $37,000 Active
5. 2024-03-08
   soldstatus $45,000 Closed 1086-char remark

   Show marketing remark (1086 chars)

   The Quarters offers the best and most carefree way to own at the beach! Ocean block location just 2 blocks from the sand and waves with Bay views from your top floor unit. Close to North Side Park, enjoy the fireworks right from your balcony! Your quarter "B" time share provides a rotating schedule of 13 weeks. Completely furnished 2 BR 2 Bath with multiple updates, includes a full kitchen, separate living and dining areas & washer/dryer in unit. The Association Fee takes care of everything from taxes and insurance, electric, maintenance and repairs, linens, and cleaning. You can enjoy all 13 weeks or rent your weeks. Spend your days on the beach and then walk back & enjoy the outdoor pool and pool deck with new deck furniture. Storage closet outside of unit for all your sandy beach toys, chairs etc. Newly installed elevator and covered parking with 2 parking spaces. Just bring your clothes and sunscreen and enjoy having your own oasis at the beach! * Fireplace is wood burning and cannot be used but an electric insert can be installed if desired.

6. 2024-02-16
   status Pending 1086-char remark

   Show marketing remark (1086 chars)

   The Quarters offers the best and most carefree way to own at the beach! Ocean block location just 2 blocks from the sand and waves with Bay views from your top floor unit. Close to North Side Park, enjoy the fireworks right from your balcony! Your quarter "B" time share provides a rotating schedule of 13 weeks. Completely furnished 2 BR 2 Bath with multiple updates, includes a full kitchen, separate living and dining areas & washer/dryer in unit. The Association Fee takes care of everything from taxes and insurance, electric, maintenance and repairs, linens, and cleaning. You can enjoy all 13 weeks or rent your weeks. Spend your days on the beach and then walk back & enjoy the outdoor pool and pool deck with new deck furniture. Storage closet outside of unit for all your sandy beach toys, chairs etc. Newly installed elevator and covered parking with 2 parking spaces. Just bring your clothes and sunscreen and enjoy having your own oasis at the beach! * Fireplace is wood burning and cannot be used but an electric insert can be installed if desired.

7. 2024-02-02
   listed $47,500 Active 1086-char remark

   Show marketing remark (1086 chars)

   The Quarters offers the best and most carefree way to own at the beach! Ocean block location just 2 blocks from the sand and waves with Bay views from your top floor unit. Close to North Side Park, enjoy the fireworks right from your balcony! Your quarter "B" time share provides a rotating schedule of 13 weeks. Completely furnished 2 BR 2 Bath with multiple updates, includes a full kitchen, separate living and dining areas & washer/dryer in unit. The Association Fee takes care of everything from taxes and insurance, electric, maintenance and repairs, linens, and cleaning. You can enjoy all 13 weeks or rent your weeks. Spend your days on the beach and then walk back & enjoy the outdoor pool and pool deck with new deck furniture. Storage closet outside of unit for all your sandy beach toys, chairs etc. Newly installed elevator and covered parking with 2 parking spaces. Just bring your clothes and sunscreen and enjoy having your own oasis at the beach! * Fireplace is wood burning and cannot be used but an electric insert can be installed if desired.

8. 1998-01-29
   soldstatus $24,000
9. 1997-09-23
   soldstatus $30,000
10. 1997-09-23
    soldstatus $30,000

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

Climate risk First Street

• 🌊 Flood 3/10 Moderate FEMA zone X (unshaded) · 12% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 9/10 Extreme 7 d/yr ≥100°F today · 18 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 80% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $29,538
• − Mortgage interest: −$2,073
• − Property taxes: −$555
• − Insurance: −$185
• − Repairs & maintenance: −$2,363
• − Management: −$2,363
• − HOA: −$7,200
• − Depreciation: −$1,076
• Taxable income: $13,723
• Est. tax owed @ 24.0%: −$3,293
• After-tax cash flow: $9,773/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: Worcester County Public Schools
• NCES district ID: 2400720
• Math proficiency: 30% ▼ -25.00%
• Reading proficiency: 44% ▼ -20.00%
• Median HH income: $56,748
• Composite: 32.6/100
• National rank: #5672
• State rank: #6 of 24 in MD

Livability — Ocean City

• Score: 73/100
• State rank: #125
• US rank: #5407

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Ocean City, MD
• County: Worcester County · 35,603 people
• Metro: Salisbury, MD-DE
• Population (ZIP): 11,226
• Household income: $79,876
• Rent vs Own: 24.0% rent · 76.0% own
• Severe rent burden: 322.0

Population outlook (Worcester County) Hauer SSP2

• Today (2025): 51,363 people
• By 2030: 51,191 · -0.3%
• By 2040: 50,459 · -1.8%
• By 2050: 49,451 · -3.7%
• By 2075: 48,533 · -5.5%
• By 2100: 44,223 · -13.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 8% Two or more races 5% Black 3%
• Hispanic origin (detail): Mexican 3%
• Common ancestry: Romanian 6% Slovak 3% Lithuanian 2%
• Foreign-born: 10% · Canada, China
• Languages at home: 87% English-only · Spanish 7% Russian/Polish/Slavic 3% Other Indo-European 2%

Political lean MEDSL · Worcester

• 2024 margin: Strong R (+22.0) · D 38.0% · R 60.0% · Other 2.0%
• 2008→2024 swing: -6.5pp toward R · 2008: -15.5pp · 2024: -22.0pp
• All cycles: 2024: R+22.0 2020: R+19.0 2016: R+27.9 2012: R+18.3 2008: R+15.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -25.65%
• Current HPI: 482.18
• Rent YoY: —
• Metro: Salisbury, MD-DE
• 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

+23.3% since first listed

10 events — show timeline

• 2026-04-24 Pending — BRIGHT MLS
• 2025-11-11 Relisted — BRIGHT MLS
• 2025-10-15 Pending — BRIGHT MLS
• 2025-10-13 Listed $37,000 BRIGHT MLS
• 2024-03-08 Sold (MLS) $45,000 BRIGHT MLS
• 2024-02-16 Pending — BRIGHT MLS
• 2024-02-02 Listed $47,500 BRIGHT MLS
• 1998-01-29 Sold (Public Records) $24,000 Public Records
• 1997-09-23 Sold (Public Records) $30,000 Public Records
• 1997-09-23 Sold (Public Records) $30,000 Public Records

Property tax history

-1.1%/yr

Latest (2025): $1,869 · +1.6% YoY. Source: county tax records.