2 Lucille Ave

Winslow, ME 04901

$249,999D

3 bd · 1.5 ba · 1,472 sqft · Built 1963 · SingleFamily · Active · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,889/mo
• Mortgage (P&I): −$1,311
• Tax + insurance: −$367
• HOA: −$0
• Vac / Maint / Mgmt: −$397
• Net cashflow: $-185/mo
• Annual: $-2,220/yr
• Cap rate: 5.41%
• Cash-on-cash: -3.17%
• DSCR: 0.86
• 1% rule: 0.76%
• Cash to close: $70,000

Investor read

• This is a 3-bed/1.5-bath single-family listed at $250k.
• At list price, monthly cash flow is $-185 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $217k (13.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $189k (24.4% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $189k (24.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#10 in ME, #937 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, health & safety A+, crime A; Watch: employment D+.
• Winslow Schools (town): math 81% / reading 87% proficiency, ranked #61 of 112 in ME (top 54%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Winslow Elementary School (math 78% / reading 86%, grade A+, #155 of 294 statewide, top 59%, 535 students, 39% FRL); Winslow Junior High School (math 82% / reading 87%, grade A+, #39 of 85 statewide, top 49%, 169 students, 35% FRL); Winslow High School (math 92% / reading 92%, grade A+, #27 of 108 statewide, top 36%, 365 students, 39% FRL) — zoned schools at 38% FRL track the district average.
• Market conditions: Rents rising fast (+6.3%/yr); 42 active listings in the ZIP; 460 units permitted in Kennebec County in 2024 (0 in 5+ unit buildings).
• Kennebec County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 3y 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 $208k; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 5.4% vs local median 3.8% in Winslow — 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.
• This rent runs 39% of the median local income ($57k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• 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?
• Built in 1963 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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 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.