328 Main St

Patten, ME 04776

$40,000B+

3 bd · 1.0 ba · 2,220 sqft · Built — · MultiFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,505/mo
• Mortgage (P&I): −$210
• Tax + insurance: −$182
• HOA: −$0
• Vac / Maint / Mgmt: −$316
• Net cashflow: $797/mo
• Annual: $9,564/yr
• Cap rate: 30.20%
• Cash-on-cash: 85.39%
• DSCR: 4.80
• 1% rule: 3.76%
• Cash to close: $11,200

Investor read

• This is a 3-bed/1.0-bath multifamily listed at $40k.
• At list price, monthly cash flow is $797 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $40k).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $2k of equity ($277 loan paydown + $2k appreciation (4.7% local appreciation)).
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• RSU 89 (rural): math 30% / reading 45% proficiency, ranked #136 of 185 in ME (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Katahdin Elementary School (math 72% / reading 72%, grade A-, #253 of 294 statewide, top 90%, 150 students, 40% FRL); Katahdin Middle/High School (math 87% / reading 92%, grade A+, #56 of 108 statewide, top 60%, 153 students, 42% FRL).
• Zoned-school proficiency averages 81% at this address vs 38% district-wide (+43 pts) — the actual schools serving this property are materially stronger than the RSU 89 average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: property tax is 5.0% of price.
• Market conditions: 16 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.
• 3 sale attempts since 18y 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.
• At projected returns (4.7% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.
• 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.