601 Highland Way · Hagerstown, MD 21740

$625,000

8 bd · None ba · 8,620 sqft · MultiFamily public records · 41 Days on market

Built 1870 0.45 ac lot $73/sqft · 16% below area Est $570k · 10% over

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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 +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +8.1/10.0
• Livability +3.9/5.0
• Rent growth +3.5/5.0
• ARV discount +3.2/15.0
• Condition / age +2.5/5.0
• Schools +2.3/10.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 1 unit. estimate disagrees with records

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks

FULLY RENTED FIVE (5) UNIT! Covered front porch, off street parking, 1 Block from beauitful City Park with walking trails, multiple ponds and playgrounds. Call for details and to schedule a tour!

Key facts

• Covered front porch
• Off street parking
• Playgrounds

Tags

• COVERED FRONT PORCH
• OFF STREET PARKING
• WALKING TRAILS
• MULTIPLE PONDS
• PLAYGROUNDS

Property features AI

Finance

• Other: Ground rent paid annually (where applicable)
• Financial info: Total actual rent reported; Existing leases are yearly; One unit on month-to-month tenancy; Five of five units leased (5 leased, 1 month-to-month noted); Income details available (rent figure provided)
• HOA & community: Details not provided

Exterior

• Parking: Driveway parking; Four driveway spaces (total of 4 garage/parking spaces)
• Security: Details not provided
• Utilities: Electric hot water; Natural gas heating; Electric cooling; Public water and sewer
• Home design: Detached property; Three total levels; Fee simple ownership
• Construction: Brick construction; Asphalt roof; Other foundation details
• Exterior features: Public water; Public sewer; Property located within city limits; One block from city park

Interior

• Kitchen: Details not provided
• Bedrooms: Three 1-bedroom units; One 2-bedroom unit; One 3-bedroom unit
• Flooring: Details not provided
• Bathrooms: Details not provided
• Heating & cooling: Hot water heating; Natural gas fuel; Central air conditioning (electric)
• Interior features: Basement with dirt floor; Detached structure with above-grade and below-grade usable space; Finished above-grade living space (per assessor); Unfinished below-grade space (per assessor)
• Laundry & utility: Details not provided

What this means for you Summary

Snapshot

• This is a 8-bed/?-bath multifamily listed at $625k.

Deal economics

• At list price, monthly cash flow is $3k ($33k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $625k).
• Recommended offer: $606k (3.0% below list) — sets the bar for market timing.
• Cap rate 11.5% vs local median 4.4% in Hagerstown — 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.

Location & tenants

• Location reads 77/100 on livability (#83 in MD, #3,170 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, health & safety A+; Watch: schools C-, crime F, employment F.
• Washingtion County Public Schools (suburban): math 18% / reading 33% proficiency, ranked #13 of 24 in MD (top 54%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: Rents rising fast (+4.0%/yr); 368 active listings in the ZIP; 232 units permitted in Washington County in 2024 (12 in 5+ unit buildings).
• At $8,178/mo this rent would consume 156% of the median local household income ($63k/yr) (locally 2832% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 4.0% rent growth), your $175k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• It's been on market 41 days — a 3% lower offer ($606k) is reasonable based on typical stale-listing flexibility.
• 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.

Risks & watch-outs

• Watch-outs: built in 1870 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: extreme-heat days projected 7→16/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $606,250 (3.0% below list)

Questions for the listing agent

1. It's been on market 41 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 1870 — 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. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
5. 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.
6. 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.
7. 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: 1.31% ✓
• Cap rate: 11.53%
• Cash-on-cash: 18.71%
• DSCR: 1.83
• GRM: 6.4

CMA / ARV

• ARV (median comp): $570,073
• List price: $625,000
• Delta: 9.63%
• Verdict: FAIR
• Comps: 7 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 4.0% rent growth · sell at horizon

5-year hold

• IRR: 11.5%
• Equity multiple: 1.46×
• Total profit: $80,620
• Equity at exit: $93,190

10-year hold

• IRR: 21.2%
• Equity multiple: 2.87×
• Total profit: $327,864
• Equity at exit: $54,039

Cash invested: $175,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 27 Tenant-Leaning
• State Maryland: 27 Tenant-Leaning · D+14
• County: — inherits STATE
• City: — inherits STATE

Failure-to-pay is dismissed if cured before judgment; Baltimore has just-cause; strict deposit rules.

Methodology + full state rankings →

ZIP-level market 21740

• Rents YoY: 4.0%
• Active inventory: 368
• Price-to-rent: 31.8×

Monthly cashflow live

• Estimated rent: $8,178 high
• Mortgage (P&I): −$3,278
• Tax from tax record: −$193 /mo · $2,321/yr
• Insurance: −$260
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,717
• Net cashflow: $2,729

Break-even live

Break-even rent $4,723

Max offer price $625,000

Occupancy floor 62%

Sensitivity live

Price	-10% $3,083	-5% $2,906	+0% $2,729	+5% $2,552	+10% $2,375
Rent	-10% $2,083	-5% $2,406	+0% $2,729	+5% $3,052	+10% $3,375
Rate	-1.0pp $3,044	-0.5pp $2,888	base $2,729	+0.5pp $2,567	+1.0pp $2,402

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

Units	Beds	Baths	Est. rent
▸ 5× units	2	1	$8,180
Total (5 units)			$8,178

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: $156,250
• Closing costs: $18,750
• Reserves months: —
• Total cash needed: —

Listing history 19 events

1. 2026-06-18
   days on market $625,000 Active 41 DOM
2. 2026-06-17
   days on market $625,000 Active 40 DOM
3. 2026-06-16
   days on market $625,000 Active 39 DOM
4. 2026-06-15
   days on market $625,000 Active 38 DOM
5. 2026-06-14
   days on market $625,000 Active 36 DOM
6. 2026-06-13
   days on market $625,000 Active 35 DOM
7. 2026-06-10
   days on market $625,000 Active 33 DOM
8. 2026-06-09
   days on market $625,000 Active 32 DOM
9. 2026-06-08
   days on market $625,000 Active 31 DOM
10. 2026-06-07
    days on market $625,000 Active 30 DOM
11. 2026-06-03
    days on market $625,000 Active 26 DOM
12. 2026-06-02
    days on market $625,000 Active 25 DOM
13. 2026-06-01
    days on market $625,000 Active 24 DOM
14. 2026-05-31
    days on market $625,000 Active 23 DOM
15. 2026-05-30
    days on market $625,000 Active 22 DOM
16. 2026-05-08
    listed $625,000 Active 195-char remark
17. 2023-10-06
    historical $1,100
18. 2023-09-22
    listed $1,100
19. 2022-08-26
    price $1,100

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

Tax reassessment forecast MD · Partial reset (capped growth)

• Current annual tax: $2,321 · $193/mo
• Projected year-2 tax: $4,567 · $381/mo
• Expected delta: +$2,246/yr (+$187/mo · 96.7%)

ⓘ 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 5/10 Major 7 d/yr ≥101°F today · 16 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 2% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $98,136
• − Mortgage interest: −$35,010
• − Property taxes: −$2,321
• − Insurance: −$3,125
• − Repairs & maintenance: −$7,851
• − Management: −$7,851
• − Depreciation: −$18,182
• Taxable income: $23,797
• Est. tax owed @ 24.0%: −$5,711
• After-tax cash flow: $27,039/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: Washingtion County Public Schools
• NCES district ID: 2400660
• Math proficiency: 18% ▼ -20.00%
• Reading proficiency: 33% ▼ -17.00%
• Median HH income: $54,784
• Composite: 22.87/100
• National rank: #8007
• State rank: #13 of 24 in MD

Livability — Hagerstown

• Score: 77/100
• State rank: #83
• US rank: #3170

Category grades

Amenities B Commute A+ Cost of living A+ Crime F Employment F Housing A Health & safety A+ User ratings C+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Hagerstown, MD
• County: Washington County · 98,861 people
• City population: 64,792
• Metro: Hagerstown-Martinsburg, MD-WV
• Population (ZIP): 64,792
• Household income: $62,873
• Rent vs Own: 44.7% rent · 55.3% own
• Severe rent burden: 2832.0

Population outlook (Washington County) Hauer SSP2

• Today (2025): 151,614 people
• By 2030: 151,455 · -0.1%
• By 2040: 150,097 · -1.0%
• By 2050: 148,193 · -2.3%
• By 2075: 146,581 · -3.3%
• By 2100: 138,025 · -9.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Majority White (64%)
• Race & ethnicity: White 64% Black 18% Two or more races 10% Hispanic / Latino 10% Asian 2%
• Hispanic origin (detail): Mexican 2% Puerto Rican 2% Dominican 2%
• Common ancestry: Romanian 2% Lithuanian 1% Slovak 1%
• Foreign-born: 9% · Canada, China
• Languages at home: 86% English-only · Spanish 9% French/Haitian/Cajun 1% Chinese 1%

Political lean MEDSL · Washington

• 2024 margin: Strong R (+23.0) · D 37.3% · R 60.4% · Other 2.3%
• 2008→2024 swing: -10.2pp toward R · 2008: -12.9pp · 2024: -23.0pp
• All cycles: 2024: R+23.0 2020: R+20.9 2016: R+32.4 2012: R+18.5 2008: R+12.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -248.38%
• Current HPI: 264.8018
• Rent YoY: ▲ 4.00%
• Metro: Hagerstown-Martinsburg, MD-WV
• State GDP YoY: ▲ 2.97%
• F500 in state: 12

Industry mix (Fortune 500 HQ in MD)

Industry	F500 HQs	Revenue
▸Aerospace / Defense	1	$71B
▸Utilities	1	$25B
▸Hotels	1	$24B
▸Consumer Goods	1	$7B
▸Real Estate	1	$6B
▸Chemicals	1	$2B

Price history

+56718.2% since first listed

4 events — show timeline

• 2026-05-08 Listed $625,000 BRIGHT MLS
• 2023-10-06 Rental Removed $1,100 APPFOLIO
• 2023-09-22 Listed for Rent $1,100 APPFOLIO
• 2022-08-26 Price Changed $1,100 APPFOLIO

Property tax history

-3.0%/yr

Latest (2025): $2,321 · +2.4% YoY. Source: county tax records.