4 Monroe St Unit 4-810

Rockville, MD 20850

$199,499D-

2 bd · 2.0 ba · 1,231 sqft · Built 1971 · Condo · Active · 312 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,440/mo
• Mortgage (P&I): −$1,046
• Tax + insurance: −$332
• HOA: −$1,351
• Vac / Maint / Mgmt: −$512
• Net cashflow: $-802/mo
• Annual: $-9,621/yr
• Cap rate: 1.47%
• Cash-on-cash: -17.22%
• DSCR: 0.23
• 1% rule: 1.22%
• Cash to close: $55,860

Investor read

• This is a 2-bed/2.0-bath condo listed at $199k. Condition is rated good.
• At list price, monthly cash flow is $-802 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $83k (58.2% below list).
• Meets the 1% rule at list price ($2k rent vs $199k).
• It's been on market 312 days — a 12% lower offer ($176k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $83k (58.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#28 in MD, #998 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, health & safety A+; Watch: cost of living F.
• Montgomery County Public Schools (suburban): math 27% / reading 45% proficiency, ranked #3 of 24 in MD (top 12%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Beall Elementary (math 39% / reading 41%, grade F, #100 of 860 statewide, top 12%, 497 students, 30% FRL); Julius West Middle (math 23% / reading 53%, grade F, #31 of 225 statewide, top 15%, 1,325 students, 40% FRL); Richard Montgomery High (math 68% / reading 77%, grade B+, #33 of 222 statewide, top 14%, 2,390 students, 33% FRL).
• Zoned-school proficiency averages 50% at this address vs 36% district-wide (+14 pts) — the actual schools serving this property are materially stronger than the Montgomery County Public Schools average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: HOA is 55% of rent.
• Market conditions: Rents soft (-0.3%/yr); 333 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 68d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 60% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 3,880 units permitted in Montgomery County in 2024 (2,054 in 5+ unit buildings).
• Montgomery County population projected at +27% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 3y ago; this cycle's ask has dropped $25k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.5% vs local median 2.4% in Rockville — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• It's been on market 312 days. Have you received any prior offers? Is the seller open to a 58% concession, seller financing, or rate buy-down credit?
• Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?