304 Rocky Shore Ln

Oakland, ME 04963

$365,000D

3 bd · 1.5 ba · 1,960 sqft · Built 1990 · SingleFamily · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,867/mo
• Mortgage (P&I): −$1,914
• Tax + insurance: −$396
• HOA: −$30
• Vac / Maint / Mgmt: −$392
• Net cashflow: $-865/mo
• Annual: $-10,384/yr
• Cap rate: 3.45%
• Cash-on-cash: -10.16%
• DSCR: 0.55
• 1% rule: 0.51%
• Cash to close: $102,200

Investor read

• This is a 3-bed/1.5-bath single-family listed at $365k.
• At list price, monthly cash flow is $-865 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $212k (41.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $187k (48.8% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $187k (48.8% below list) — sets the bar for 1% rule.
• In year one you build about $39k of equity ($3k loan paydown + $36k appreciation (10.0% local appreciation)).
• Location reads 75/100 on livability (#37 in ME, #3,871 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• RSU 18 (rural): math 88% / reading 89% proficiency, ranked #36 of 112 in ME (top 32%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Williams Elementary School (math 92% / reading 93%, grade A+, #24 of 294 statewide, top 8%, 227 students, 38% FRL); Messalonskee Middle School (math 86% / reading 88%, grade A+, #28 of 85 statewide, top 37%, 452 students, 32% FRL); Messalonskee High School (math 92% / reading 92%, grade A+, #27 of 108 statewide, top 36%, 725 students, 25% FRL) — zoned schools at 32% FRL track the district average.
• Market conditions: 72 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.
• 5 sale attempts since 9y 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 $297k; 23% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$63k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.4% vs local median 2.1% in Oakland — 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.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.