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Prospect analysisArchived
111 Franks Flat
Asking$699,000
Sedgwick · Sedgwick, ME · 2 bd · 2 ba · 1,359 sq ft · Built 2016
Underwritten as a short-term rental
Dual-cottage waterfront property with proven seasonal rental history and strong projected cash flow in Sedgwick, ME.
This offering consists of two updated, fully furnished 1-bedroom cottages on over 3 acres with 451 feet of tidal river frontage, positioned for short-term rental performance. Underwriting metrics indicate high-confidence income and cash-on-cash return projections, though seasonality and rural location warrant careful diligence.
Est. ADR
$435
Est. occupancy
62%
Gross rev / mo
$8,203
Cash-on-cash
19.7%
Airfolio market estimates · 25% down · detail in the underwriting panel.
Investment thesis
This property presents a compelling opportunity for investors seeking a turn-key, dual-unit waterfront asset with established short-term rental appeal. The two cottages, each with their own septic and shared well, are well maintained and designed to maximize guest experience with direct water access and scenic views. High-confidence underwriting projects robust monthly income and a nearly 20% cash-on-cash return, assuming continued strong seasonal demand. The primary caveat is the reliance on seasonal occupancy and the rural Maine location, which may limit year-round rental potential and require active management or local partnerships.
Highlights
- Two separate 1-bedroom, 1-bath cottages (built 2016 and 2020)
- 3.2± acre lot with 451 feet of tidal Bagaduce River frontage
- Floating dock and direct water access for kayaking/canoeing
- Recent foundation, drainage, and interior improvements
- Fully furnished and ready for immediate rental use
- Previously operated as a successful seasonal rental
- High-confidence underwriting with strong projected returns
Risks
STR permitting: verify local ordinance and zoning allow short-term rental at this address before offering. Not verified.
Seasonal demand fluctuations may impact occupancy and income
Short-term rental regulations should be verified for Sedgwick
Rural location may limit off-season guest demand
Returns are sensitive to occupancy and nightly rate assumptions
Operational complexity of managing two units and waterfront infrastructure
Market
Sedgwick, ME is a rural coastal market with appeal to seasonal visitors seeking waterfront experiences. The property type—a pair of updated, furnished cottages—aligns well with short-term rental demand in this region, particularly during peak summer months. While the underwriting is supported by high-confidence projections, investors should be mindful of the market's seasonality and the potential for regulatory changes affecting STR operations.
Neighborhood
The property's setting on the tidal Bagaduce River offers strong guest appeal for those seeking privacy, wildlife, and water-based recreation. Proximity to local attractions like Bagaduce Lunch and nearby towns (Blue Hill, Deer Isle, Castine) enhances its draw, though the rural character means amenities and services are limited. Conclusions about neighborhood demand are moderate-confidence due to limited granular data, but the waterfront location is a clear asset for the target guest profile.
Underwriting notes
At a $699,000 purchase price, underwriting projects a monthly expected income of $8,203 and cash flow of $2,873, with a 19.7% cash-on-cash return based on a 25% down payment, 6.4% interest rate, and 25% expense ratio. These high-confidence figures are driven by an estimated $435 ADR and 62% occupancy, reflecting strong seasonal rental potential. Returns are sensitive to occupancy and nightly rate assumptions, and investors should confirm the sustainability of these metrics given the property's seasonal and rural context.
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