81 Old Route One

Hancock, ME 04640

$420,000D

3 bd · 2.0 ba · 1,900 sqft · Built 1900 · MultiFamily · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,264/mo
• Mortgage (P&I): −$2,203
• Tax + insurance: −$321
• HOA: −$0
• Vac / Maint / Mgmt: −$685
• Net cashflow: $55/mo
• Annual: $662/yr
• Cap rate: 6.45%
• Cash-on-cash: 0.56%
• DSCR: 1.03
• 1% rule: 0.78%
• Cash to close: $117,600

Investor read

• This is a 3-bed/2.0-bath multifamily listed at $420k.
• At list price, monthly cash flow is $55 ($662/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 $326k (22.3% below list).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $326k (22.3% below list) — sets the bar for 1% rule.
• In year one you build about $1k of equity ($3k loan paydown + $-2k appreciation (-0.5% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Hancock Public Schools (rural): math 20% / reading 45% proficiency, ranked #158 of 185 in ME (top 85%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hancock Grammar School (math 72% / reading 82%, grade A, #209 of 294 statewide, top 75%, 174 students, 47% FRL) — zoned schools at 47% FRL track the district average.
• Zoned-school proficiency averages 77% at this address vs 32% district-wide (+44 pts) — the actual schools serving this property are materially stronger than the Hancock Public Schools average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 36 active listings in the ZIP; 270 units permitted in Hancock County in 2024 (0 in 5+ unit buildings).
• Hancock County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 19y 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 $291k; 44% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1900 — 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 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.