910 Hostile Valley Rd · Palermo, ME 04354

$279,900

5 bd · 2.0 ba · 2,802 sqft · MultiFamily · 36 Days on market

Built 1900 5.09 ac lot $100/sqft · 58% below area

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Why this score? — see what drove the C 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 +20.8/30.0
• ARV discount +7.5/15.0
• Schools +7.3/10.0
• DSCR +6.6/10.0
• 1% rule +4.9/10.0
• Appreciation +4.7/10.0
• Rent growth +2.5/5.0
• Livability +2.5/5.0
• Condition / age +2.5/5.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 1 unit. estimate disagrees with records

Listing remarks

This spacious 5 bedroom, 2 bath home sits on a lovely quiet road in Palermo, Maine. Built in 1900 the home retains much of the original wood flooring and some original wood doors. This home is currently occupied and offers the ability to modernize and add value. The most recent addition to the home includes an updated kitchen and living room complete with recessed lighting, radiant heating, gas range and dishwasher. Additionally the roof was raised to allow for high ceilings in the upstairs bedrooms with a large attic that offers ample storage apace.

Key facts

• Ample storage space
• Updated kitchen
• Radiant heating

Tags

• ORIGINAL WOOD FLOORING
• UPDATED KITCHEN
• RADIANT HEATING
• GAS RANGE
• AMPLE STORAGE SPACE

Property features AI

Finance

• Other: Rural zoning

Exterior

• Parking: On-site parking; Gravel parking
• Utilities: Private well water; Private sewer; Utilities on; Water heater tied to heating system
• Home design: Single family residence; Multi-level; Built in 1900
• Construction: Wood frame construction; Vinyl siding; Shingle roof; Full unfinished basement with interior entry, bulkhead and crawl space
• Exterior features: Level, wooded lot; Paved road access; Shed(s)

Interior

• Kitchen: Pantry; Gas range; Refrigerator; Dishwasher
• Bedrooms: Primary bedroom (Second level) with full bath and walk-in closet; Bedroom 1 (First level); Bedroom 3 (Second level); Bedroom 4 (Second level); Bedroom 5 (Second level)
• Flooring: Wood floors
• Bathrooms: 2 full bathrooms
• Heating & cooling: Baseboard heating; Hot water heating; Radiant heating; Circuit breaker electric
• Interior features: First-floor bedroom; Attic; Bathtub; Pantry; Shower; Walk-in closets; Primary bedroom with bath; Unfurnished; Double-pane windows
• Laundry & utility: Washer; Dryer; Laundry on main level

What this means for you Summary

Snapshot

• This is a 5-bed/2.0-bath multifamily listed at $280k.

Deal economics

• At list price, monthly cash flow is $385 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $277k (1.0% below list).
• Recommended offer: $272k (3.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• RSU 12 (rural): math 86% / reading 86% proficiency, ranked #50 of 112 in ME (top 45%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: 35 active listings in the ZIP; 143 units permitted in Waldo County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-0.7%/yr); year-one equity from $2k of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Waldo County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-0.7% appreciation + 3.0% rent growth), your $78k cash investment doubles in ~10 years — after that, you're playing with house money.

Negotiation context

• It's been on market 36 days — a 3% lower offer ($272k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 24y 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: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $271,503 (3.0% below list)

Questions for the listing agent

1. It's been on market 36 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1900 — 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. 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.
5. 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.
6. 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: 0.99% ✗
• Cap rate: 7.94%
• Cash-on-cash: 5.89%
• DSCR: 1.26
• GRM: 8.4

CMA / ARV

• ARV (median comp): $667,184
• List price: $279,900
• Delta: -58.05%
• Verdict: UNDERPRICED
• Comps: 2 within 2.0 mi

Projected returns pro-forma

-0.7% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 2.0%
• Equity multiple: 1.09×
• Total profit: $7,235
• Equity at exit: $71,649

10-year hold

• IRR: 8.2%
• Equity multiple: 1.82×
• Total profit: $64,519
• Equity at exit: $78,777

Cash invested: $78,372 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 41 Moderately Tenant-Leaning
• State Maine: 41 Moderately Tenant-Leaning · D+2
• County: — inherits STATE
• City: — inherits STATE

Portland has rent control referendum (2020); strong habitability; security deposit caps.

Methodology + full state rankings →

ZIP-level market 04354

• Home prices YoY: -0.3%
• Active inventory: 35
• Price-to-rent: 15.9×

Monthly cashflow live

• Estimated rent: $2,771 medium
• Mortgage (P&I): −$1,468
• Tax from tax record: −$220 /mo · $2,638/yr
• Insurance: −$117
• HOA: −$0
• Vacancy / Maint / Mgmt: −$582
• Net cashflow: $385

Break-even live

Break-even rent $2,284

Max offer price $279,900

Occupancy floor 81%

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
1× unit	3	1	$1,464
1× unit	2	1	$1,307
Total (2 units)			$2,771

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: $69,975
• Closing costs: $8,397
• Reserves months: —
• Total cash needed: —

Listing history 16 events

1. 2026-06-19
   days on market $279,900 Active 36 DOM
2. 2026-06-18
   days on market $279,900 Active 35 DOM
3. 2026-06-17
   days on market $279,900 Active 34 DOM
4. 2026-06-16
   days on market $279,900 Active 33 DOM
5. 2026-06-15
   days on market $279,900 Active 32 DOM
6. 2026-06-14
   days on market $279,900 Active 30 DOM
7. 2026-06-12
   days on market $279,900 Active 29 DOM
8. 2026-06-09
   days on market $279,900 Active 26 DOM
9. 2026-06-08
   days on market $279,900 Active 25 DOM
10. 2026-06-07
    days on market $279,900 Active 24 DOM
11. 2026-06-05
    days on market $279,900 Active 21 DOM
12. 2026-06-02
    days on market $279,900 Active 19 DOM
13. 2026-06-01
    days on market $279,900 Active 18 DOM
14. 2026-05-31
    days on market $279,900 Active 17 DOM
15. 2026-05-30
    days on market $279,900 Active 16 DOM
16. 2026-05-14
    listed $279,900 Active 556-char remark

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

Tax reassessment forecast ME · Partial reset (capped growth)

• Current annual tax: $2,638 · $220/mo
• Projected year-2 tax: $3,222 · $269/mo
• Expected delta: +$584/yr (+$49/mo · 22.2%)

ⓘ 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 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥91°F today · 15 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 17% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $33,252
• − Mortgage interest: −$15,679
• − Property taxes: −$2,638
• − Insurance: −$1,400
• − Repairs & maintenance: −$2,660
• − Management: −$2,660
• − Depreciation: −$8,143
• Taxable income: $73
• Est. tax owed @ 24.0%: −$17
• After-tax cash flow: $4,600/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: RSU 12
• NCES district ID: 2314780
• Math proficiency: 86% ▲ 58.00%
• Reading proficiency: 86% ▲ 35.00%
• Median HH income: $49,792
• Composite: 72.62/100
• National rank: #197
• State rank: #50 of 112 in ME

Livability — Palermo

No livability data for this city. (Only ~50 U.S. cities are tracked.)

Census & demographics

• Population (ZIP): 1,420

Population outlook (Waldo County) Hauer SSP2

• Today (2025): 39,611 people
• By 2030: 39,475 · -0.3%
• By 2040: 38,245 · -3.4%
• By 2050: 36,078 · -8.9%
• By 2075: 29,774 · -24.8%
• By 2100: 22,172 · -44.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (96%)
• Race & ethnicity: White 96% Two or more races 3%
• Common ancestry: Lithuanian 8% Romanian 3% Slovak 3%
• Foreign-born: 1% · Canada
• Languages at home: 98% English-only · Spanish 1% German/W. Germanic 1%

Political lean MEDSL · Waldo

• 2024 margin: Toss-up / Even · D 50.4% · R 47.0% · Other 2.6%
• 2008→2024 swing: -8.3pp toward R · 2008: 11.6pp · 2024: 3.4pp
• All cycles: 2024: D+3.4 2020: D+4.7 2016: D+0.3 2012: D+10.7 2008: D+11.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -0.70%
• Current HPI: 202.8325
• Rent YoY: —
• Metro: —
• State GDP YoY: —
• F500 in state: 0

Price history

+183.0% since first listed

4 events — show timeline

• 2026-05-14 Listed $279,900 MREIS
• 2020-10-01 Delisted — MREIS
• 2019-11-15 Listed $199,000 MREIS
• 2002-06-20 Listed $98,900 MREIS

Property tax history

+4.5%/yr

Latest (2024): $2,638 · +4.6% YoY. Source: county tax records.