A tax-acquired, City of Bangor–owned 3-bed Colonial in an established in-town neighborhood. Buy for $60,000 cash and complete a $57,024 cosmetic-plus rehab and certificate-of-occupancy scope. Then rent it at about $1,650/mo, then refinance at 75% of a $230,000 appraisal. A retail sale is the fallback exit.
Buy at $60,000 and spend $57,024 on the rehab. That covers Jon's interior scope, certificate-of-occupancy items, a new roof and new vinyl siding (Renatus rates plus a Maine labor and area adjustment), 15% contingency, and allowances for heating baseboard and a flue liner. With hard money interest and holding costs, the all-in cost is $137,467. A 75% refinance on a $230,000 appraisal is $172,500.
| At $60,000 purchase · $57,024 rehab | 75% LTV refi $1,650 market rent | 75% LTV refi $1,900 Section 8 | $147,000 refi DSCR 1.20 sizing, $1,650 | $127,000 refi Cash-flow sizing, $1,650 |
|---|---|---|---|---|
| All-in cost (purchase, rehab, closing, points, 8 mo interest, holding) | $137,467 | $137,467 | $137,467 | $137,467 |
| Refinance loan | $172,500 | $172,500 | $147,000 | $127,000 |
| Loan-to-value on $230k ARV | 75% | 75% | 64% | 55% |
| Refi loan minus all-in cost | $35,033 | $35,033 | $9,533 | −$10,467 |
| Refi closing costs | −$4,950 | −$4,950 | −$4,440 | −$4,040 |
| Hard money payoff | −$111,024 | −$111,024 | −$111,024 | −$111,024 |
| Cash back to Jon at refi | $56,526 | $56,526 | $31,536 | $11,936 |
| Jon's cash in before refi | $26,443 | $26,443 | $26,443 | $26,443 |
| Cash left in the deal | $0 · all out + $30,083 | $0 · all out + $30,083 | $0 · all out + $5,093 | $14,507 |
| PITI (P&I 30-yr 7.25% + $295 tax + $75 ins) | $1,547 | $1,547 | $1,373 | $1,236 |
| DSCR (rent ÷ PITI) | 1.07 | 1.23 | 1.20 | 1.33 |
| Cash flow / mo after all reserves | −$309 | −$122 | −$135 | $1 |
| Cash flow / mo before maintenance & capex reserves | −$144 | $68 | $30 | $166 |
| Purchase price test: what price still works? | Max price · $57k rehab | Max price · $47.5k rehab (Renatus only) |
|---|---|---|
| Recover 100% of cash with a 75% LTV refinance ($172,500) | $87,500 | $97,100 |
| Recover 100% of cash with a 1.20 DSCR refinance at $1,650 ($147,000) | $64,700 | $74,300 |
| Clean hold: 100% of cash back, DSCR ≥ 1.20 and $0+ cash flow after all reserves ($127,000 refinance) | $46,700 | $56,400 |
The purchase price doesn't change DSCR, which depends on rent and the refinance amount. It only changes how much cash comes back out. At the $57,024 budget, $60,000 recovers all of Jon's cash at a 75% refinance or a 1.20 DSCR refinance, which works up to about $64,700. The fully clean hold needs about $46,700, or about $56,400 if the rehab comes in at Renatus rates (close to Jon's $45k estimate).
Assumptions: a 30-year DSCR loan at 7.25%. Refinance costs are 2% plus $1,500. Hard money is carried for 8 months at 12% with 2.5 points. Taxes are $295/mo after reassessment and insurance is $900/yr. Reserves are 5% vacancy, 10% management (SI Associates), 5% maintenance and 5% capex, and the tenant pays utilities. At the Renatus-only $47,500 rehab (no Maine adjustment), a 75% refinance pulls out $40,608 beyond Jon's cash. Seasoning caveat: some DSCR lenders limit cash-out to cost basis until 12 months of seasoning. At 75% of the $117,024 purchase plus rehab ($87,768), that wouldn't cover the $111,024 hard money payoff, so the refinance lender needs to use appraised value after 6 months.
Short-term purchase and rehab loan. The primary exit is a DSCR cash-out refinance after 6 months of seasoning, and a retail sale is the fallback. Leverage is modest against value: the full loan is under half of the after-repair value.
Total project cost of $134,491 before the sale. The lender funds 83%; Jon funds the rest from his own cash.
Public record from the City of Bangor FY2027 tax card and assessing data, plus the public listing.
| Address | 232 Birch St, Bangor, ME 04401 (Map-Lot 053-091) |
| Style / built | 1¾-story Colonial, built 1900 |
| Size | 956 sf above grade · 3 bed / 1 full bath · 6 rooms |
| Basement | Full basement on a brick/stone foundation, part finished. The assessor notes it as damp. |
| Lot | 0.12 acre (40 × 132 ft) · zone URD-1 · gravel drive for 1–4 cars |
| Systems | Oil-fired hot-water baseboard heat · public water and sewer · no cooling |
| Exterior | Wood frame, wood shingle siding, asphalt shingle roof, 168 sf deck |
| Assessment | $143,300 (FY27: land $17,000 + building $126,300) |
| Taxes | Mill rate $17.13 → about $2,455/yr now. After the rehab, a reassessment could reach about $3,540/yr ($295/mo). |
| Seller | City of Bangor. Tax-acquired in Dec 2023 and sold by quitclaim deed. |
| Status | Condemned / placarded A new certificate of occupancy is required before anyone lives there. |
These are City of Bangor assessor-recorded sales of single-family homes within 0.5 mile, 800–1,400 sf, from the last 12 months. All 26 sales in that set have a median price of $230,000 and a median of $208/sf. Smaller homes like the subject sell at higher $/sf.
Navy points are renovated or retail-condition sales, gray points are distressed or as-is sales, gold marks the subject's ARV range, and red marks the $60,000 offer.
| Address | Distance | Sold | Price | Sq ft | Bd/Ba | Built | $/sf |
|---|---|---|---|---|---|---|---|
| 236 Birch St (next door) ARV anchor | 0.01 mi | Sep 24, 2025 | $229,000 | 1,312 | 2/1 | 1900 | $175 |
| 216 Fern St | 0.10 mi | Apr 29, 2026 | $275,000 | 1,392 | 3/1 | 1930 | $198 |
| 139 Palm St | 0.13 mi | May 1, 2026 | $295,000 | 960 | 3/1 | 1950 | $307 |
| 306 Birch St | 0.19 mi | Jan 16, 2026 | $314,900 | 1,188 | 3/2 | 1971 | $265 |
| 255 Fern St | 0.20 mi | Mar 16, 2026 | $270,000 | 1,054 | 3/2 | 1947 | $256 |
| 142 Elm St | 0.26 mi | Oct 13, 2026 | $257,000 | 1,200 | 2/1.5 | 1900 | $214 |
| 288 Parkview Ave ARV anchor | 0.27 mi | Apr 27, 2026 | $220,000 | 1,024 | 3/2 | 1920 | $215 |
| 233 Palm St | 0.28 mi | Jan 28, 2026 | $262,000 | 1,036 | 2/1.5 | 1916 | $253 |
| 203 Grove St ARV anchor | 0.28 mi | Sep 18, 2026 | $225,000 | 1,195 | 3/1 | 1850 | $188 |
| 259 Grove St | 0.31 mi | Mar 2, 2026 | $235,000 | 1,387 | 2/1 | 1900 | $169 |
| 240 Palm St | 0.31 mi | Jun 24, 2026 | $175,200 | 942 | 2/1 | 1948 | $186 |
| 232 Grove St | 0.32 mi | Jun 15, 2026 | $250,000 | 1,148 | 3/2 | 1880 | $218 |
| 339 Essex St | 0.35 mi | Feb 18, 2026 | $210,000 | 1,142 | 2/2 | 1900 | $184 |
| 302 Grove St ARV anchor | 0.38 mi | Jun 8, 2026 | $260,000 | 901 | 3/1 | 1969 | $289 |
| 385 Essex St | 0.40 mi | Sep 8, 2026 | $275,000 | 1,260 | 3/1 | 1950 | $218 |
| 310 Grove St | 0.40 mi | Jan 9, 2026 | $220,000 | 1,092 | 2/2 | 1880 | $201 |
| 342 Grove St ARV anchor | 0.45 mi | Jul 31, 2026 | $215,000 | 910 | 2/1 | 1900 | $236 |
| 340 Grove St ARV anchor | 0.45 mi | Aug 28, 2026 | $214,900 | 910 | 3/1 | 1900 | $236 |
| Address | Distance | Sold | Price | Sq ft | Note |
|---|---|---|---|---|---|
| 240 Grove St | 0.32 mi | May 22, 2026 | $57,000 | 836 | Sold by the City of Bangor (tax-acquired) |
| 28 Pearl St | 0.46 mi | Feb 24, 2026 | $55,000 | 846 | 2 BR, as-is |
| 76 Pearl St | 0.33 mi | Jan 9, 2026 | $50,000 | 1,484 | Heavy rehab |
| 130 Fruit St | 0.16 mi | Sep 30, 2026 | $90,000 | 1,140 | 3/2, as-is |
| 213 Garland St | 0.20 mi | Apr 14, 2026 | $112,000 | 1,275 | LLC buyer (likely flip) |
| 148 Fruit St | 0.15 mi | Aug 26, 2026 | $157,000 | 1,224 | Bank REO |
Source: City of Bangor assessing sales records (public), retrieved Oct 29, 2026. Distances are measured from the parcel centroids. Highlighted rows are the primary ARV anchors. Reaching the $250,000 high case would require updating the kitchen and bath, which is not in the base scope.
Unit costs are Renatus IOS Repair Estimator defaults, and quantities are based on 956 sf above grade. Tier 1 is the interior scope Jon confirmed at his walkthrough today. Tier 2 covers the items the city typically requires before it will reissue a certificate of occupancy on a placarded house. Tier 3 is the new roof and new vinyl siding Jon asked for, with a clearly labeled Maine labor and area adjustment where Renatus's per-property-sf basis understates the work.
| Line item | Qty | Unit | Renatus unit cost | Total |
|---|---|---|---|---|
| Tier 1 · Jon's walkthrough scope | ||||
| Baseboard trim, new (all rooms) | 400 | LF | $3.16 | $1,264 |
| Paint new baseboard trim | 400 | LF | $1.90 | $760 |
| Vinyl flooring throughout (main + finished bsmt) | 1,200 | SF | $2.30 | $2,760 |
| Interior paint throughout | 956 | SF | $2.30 | $2,199 |
| Extra wall prep (vacant/condemned walls) | 956 | SF | $0.58 | $554 |
| Basement stairs, complete replacement | 1 | EA | $1,150 | $1,150 |
| Chimney repair (brick/stone, lump sum) | 1 | LS | $5,750 | $5,750 |
| Tier 1 subtotal | $14,437 | |||
| Tier 2 · Likely certificate-of-occupancy items | ||||
| Boiler / HVAC service (oil HW system) | 1 | EA | $575 | $575 |
| Electrical, basic + fixtures | 1 | LS | $3,450 | $3,450 |
| Plumbing, wet locations | 1 | LS | $1,725 | $1,725 |
| Drywall patches | 2 | EA | $575 | $1,150 |
| Dumpster, 40-yd | 1 | EA | $575 | $575 |
| Demo / debris haul (fill one 40-yd) | 1 | EA | $575 | $575 |
| Yard cleanup | 1 | LS | $575 | $575 |
| Permits, City of Bangor remodel | 1 | LS | $1,725 | $1,725 |
| Tier 2 subtotal | $10,350 | |||
| Tier 3 · New roof & new vinyl siding (Renatus IOS defaults, 956 property sf) | ||||
| Roof rip & replace, architectural shingle (Renatus: per property sf) | 956 | Prop SF | $4.60 | $4,398 |
| Steep-pitch premium (1¾-story gable) | 956 | Prop SF | $0.23 | $220 |
| Fascia (eaves ~52 LF + rakes ~56 LF) | 110 | LF | $3.45 | $380 |
| Soffit (eaves + returns) | 60 | LF | $4.60 | $276 |
| Gutters & downspouts (Renatus flat, per property sf) | 956 | Prop SF | $0.58 | $554 |
| Siding demo: strip wood shingle siding | 956 | Prop SF | $0.86 | $822 |
| New vinyl siding | 956 | Prop SF | $2.59 | $2,476 |
| Tier 3 subtotal (Renatus) | $9,126 | |||
| Maine labor / area adjustment (roof ≈850 sf, siding wall area ≈1,550 sf) | ||||
| Roof: Maine labor/area adj. (850 sf roof + 10% waste, ice & water shield; Bangor ≈$7.30/roof sf all-in → $6,200) | 1 | LS | $1,583 | $1,583 |
| Siding: area adj. (≈1,550 sf actual wall vs 956 property sf) × Renatus demo + vinyl $3.45 | 594 | Wall SF | $3.45 | $2,049 |
| Siding: Maine labor adj. (house wrap, J-channel, window/door/corner trim) | 1,550 | Wall SF | $3.00 | $4,650 |
| Maine adjustment subtotal | $8,282 | |||
| Roof & siding all-in before contingency (Tier 3 + adjustment) | $17,408 | |||
| Tiers 1 + 2 + 3 + adjustment | $42,195 | |||
| Contingency, 15% (condemned property) | 15% | of subtotal | n/a | $6,329 |
| Core rehab incl. 15% contingency | $48,524 | |||
| Allowances · optional lines, drawn only if needed | ||||
| Optional: replace hot-water heating baseboard (fin-tube, licensed plumber). Range $3,000–7,000 | 60–90 | LF | $35–75/LF | $5,000 |
| Optional: stainless chimney flue liner for the oil boiler. Range $2,500–4,500 | 1 | EA | n/a | $3,500 |
| Total rehab budget (financed) | $57,024 | |||
Interior, CO items, exterior (Renatus), Maine adjustment, contingency, allowances
Budgeted at the Renatus brick/stone lump sum of $5,750. Jon judged the masonry rough but manageable. An oil boiler needs a lined flue, so a $3,500 liner allowance is carried in the budget (range $2,500–4,500). Another option is a direct-vent boiler or heat pumps, which removes the chimney from the heating system.
Complete replacement at $1,150. Code-compliant risers and treads, headroom and a handrail are included in the scope. The basement is noted as damp, so the stringer bearing and sill condition get checked during demo.
Kitchen (refinish cabinets and new counters, $7,475, plus appliances, $2,300) and the full bath ($6,325) total $16,100 before contingency. Adding them supports the $250,000 high-case ARV and would raise rent.
The buy and rehab are the same as the flip, on the same hard money loan, carried for 8 months: 6 months of rehab plus about 2 months to lease up and refinance. Rent is $1,650/mo (range $1,550–1,800), with the tenant paying heat, electric and utilities. Operating costs: taxes $295/mo after reassessment, insurance $900/yr, 5% vacancy, 5% maintenance, 5% capex and 10% management by SI Associates. The refinance is a 30-year DSCR loan at 7.25% against a $230,000 appraisal.
| Monthly operations at $1,650 | Amount |
|---|---|
| Gross rent | $1,650 |
| Vacancy, 5% | −$82 |
| Management, 10% (SI Associates) | −$165 |
| Maintenance reserve, 5% | −$82 |
| Capital expenditure reserve, 5% | −$82 |
| Property taxes (post-rehab reassessment) | −$295 |
| Landlord insurance, $900/yr | −$75 |
| Net operating income | $868 |
Bars show monthly cash flow after all reserves at a 75% LTV refinance (navy) and at the cash-flow sizing of option C (gold). The line shows DSCR at 75% LTV.
| Monthly rent | 60% LTV $138,000 loan | 65% LTV $149,500 loan | 70% LTV $161,000 loan | 75% LTV $172,500 loan |
|---|---|---|---|---|
| $1,550 Low | 1.18 | 1.12 | 1.06 | 1.00 |
| $1,650 Base | 1.26 | 1.19 | 1.12 | 1.07 |
| $1,800 High market | 1.37 | 1.30 | 1.23 | 1.16 |
| $1,900 Section 8 contract (est.) | 1.45 | 1.37 | 1.29 | 1.23 |
| $2,133 HUD FMR, gross | 1.63 | 1.53 | 1.45 | 1.38 |
DSCR = monthly rent ÷ PITI (30-year amortization at 7.25%, taxes $295, insurance $75). Green is 1.20 or higher, amber is 1.00–1.19 and red is below 1.00.
Hard money at 90% of purchase plus 100% of rehab, 12% interest-only and 2.5 points plus $1,500 in lender fees. Interest is charged on the full loan balance for all 6 months, which is conservative because rehab draws come in over time. Holding costs are $755/mo for taxes, vacant-property insurance and winter utilities. Jon lists the house himself, so the only commission modeled is 2.5% to the buyer's agent.
| Flip pro forma · base case | Amount |
|---|---|
| Sale price (ARV) | $230,000 |
| Purchase price | −$60,000 |
| Buy-side closing (title, owner's and lender's policies, recording) | −$2,000 |
| Rehab, incl. 15% contingency and allowances | −$57,024 |
| Hard money points (2.5%) + lender fees | −$4,276 |
| Hard money interest, 12% × 6 months on $111,024 | −$6,661 |
| Holding costs, $755/mo × 6 | −$4,530 |
| Buyer-agent commission, 2.5% (Jon lists the property himself) | −$5,750 |
| Seller closing costs and transfer tax, 1.5% | −$3,450 |
| Net profit | $86,309 |
| Total project cost | $143,691 |
| Jon's cash needed (10% down, closing, points, interest, holding) | $23,467 |
| Return on cash invested (6 months) | 368% |
| Return on total cost | 60% |
| Profit margin on sale price | 38% |
Costs, then profit
| Scenario | ARV | Rehab | Hold | Commission | Loan | Cash needed | Net profit | ROI on cash |
|---|---|---|---|---|---|---|---|---|
| Stress budget overrun 20%, 8 months, full 5% commission | $215,000 | $68,429 | 8 mo | 5.0% | $122,429 | $28,395 | $50,201 | 177% |
| Base financed rehab budget | $230,000 | $57,024 | 6 mo | 2.5% | $111,024 | $23,467 | $86,309 | 368% |
| Base, full commission if listed with an outside broker at 5% | $230,000 | $57,024 | 6 mo | 5.0% | $111,024 | $23,467 | $80,559 | 343% |
| High adds kitchen and bath | $250,000 | $75,539 | 7 mo | 2.5% | $129,539 | $27,091 | $83,370 | 308% |
The spread is unusually wide because the market is pricing in the risks of a quitclaim deed and a condemned house. Section 09 shows how those risks are cleared before any money is at risk.
Net flip profit assuming a 6-month hold, the hard money terms above and a 2.5% commission. The loan grows with the rehab budget. The base case is outlined in gold.
| Sale price (ARV) | $47,500 Renatus only, no Maine adj. | $57,024 Financed budget (base) | $68,429 Budget +20% overrun | $75,539 + kitchen & bath |
|---|---|---|---|---|
| $200,000 | $67,842 | $57,509 | $45,135 | $37,420 |
| $215,000 | $82,242 | $71,909 | $59,535 | $51,820 |
| $230,000 | $96,642 | $86,309 | $73,935 | $66,220 |
| $250,000 | $115,842 | $105,509 | $93,135 | $85,420 |
Green is $80k+, light green $50–80k, amber $25–50k and red under $25k. Every cell in the grid is profitable, including a $200,000 sale with a $75,539 rehab.
This is a City of Bangor tax-acquired, placarded property sold by quitclaim deed. The main risks are legal and regulatory, so they are diligenced before closing.
The city conveys by quitclaim, and under Maine law (36 MRSA §943-C, LD 101) a prior owner can challenge a tax-lien foreclosure for up to 5 years after it. The city acquired this property in December 2023.
Mitigant: the purchase is contingent on a title commitment that will issue owner's and lender's policies. The lender's policy is a closing condition, and the same title work supports the DSCR refinance. The city defends any challenge to its foreclosure.
The placard removed the certificate of occupancy, and a new one is required before the house can be occupied or rented. Plumbing and electrical permits must be pulled by licensed trades.
Mitigant: a Code Enforcement walk-through (207-992-4230) before closing, including confirming there is no red "X" structural placard. Tier 2 budgets $10,350 for CO items, and the 15% contingency sits on top of that.
Maine heating oil averaged a record $6.04/gal on Oct 19, 2026. A 956 sf house built in 1900 with limited insulation may burn 500–700 gal/yr ($3,000–4,200), which affects both winter holding costs and how easy the house is to rent.
Mitigant: the holding budget includes winter heat. Air sealing or a heat-pump add-on improves both resale and rent, and the tenant pays heat.
The masonry is rough, and an oil boiler needs a sound, lined flue.
Mitigant: $5,750 is budgeted, with a separately priced liner option of $2,500–4,500. A direct-vent boiler or heat pumps can take the chimney out of service entirely.
The house has been vacant 3+ years: freeze damage to the hot-water heating system, plumbing or boiler is possible, and the basement is damp.
Mitigant: pressure-test the heating and plumbing before closing. The $5,000 heating baseboard allowance plus the 15% contingency covers it. A sale even with a 20% budget overrun still nets $50,201.
A Maine winter limits exterior work. Stripping the original wood shingles can also expose sheathing rot on a house built in 1900.
Mitigant: the roof and siding are budgeted at $17,408 before contingency, including the Maine labor and area adjustment, and the 15% contingency covers sheathing repairs. The roof is done in the first dry window and the siding can wait until spring without holding up the interior or the certificate of occupancy.
The base ARV of $230,000 equals the median of the comp set and is close to the $229,000 sale next door. The loan is only 52% of the low-case ARV.
Mitigant: A 75% refinance needs only a $230,000 appraisal and still pulls out all of Jon's cash, even at a lower appraisal. A retail sale (Jon lists it himself) is the fallback.
Target dates assume the city accepts the offer in November.
A $60,000 cash offer to the City of Bangor with no financing contingency, then city review and acceptance.
Title commitment for owner's and lender's policies, the Code Enforcement walk-through, heating and plumbing pressure tests, contractor bids and lender valuation.
Fund $54,000 at closing, insure the house as vacant/builder's risk, keep the heat on, pull permits and set up the dumpster for demo.
Chimney, basement stairs, electrical and plumbing first, then drywall, paint, vinyl flooring and trim. The roof goes on in the first dry weather window; siding follows as weather allows, or in early spring. Draws come out of the $57,024 holdback.
Final inspections and a new certificate of occupancy from the city.
BRRRR (primary): lease up through SI Associates (Section 8 preferred), then a DSCR cash-out refinance once 6 months of seasoning are reached, which repays the loan by month 8–9. Fallback: Jon lists at about $230,000 in the spring market.
All data is from public sources: City of Bangor records, public listing syndication and published market data.
A Bangor-based broker and active investor who does BRRRR projects and flips. I'm requesting a $111,024 purchase and rehab loan for 232 Birch St, a BRRRR with a DSCR refinance as the exit, and am ready to move quickly on terms, a draw schedule and an appraisal.