Boarding House with Private
For Sale
$549,999
40 2nd Street, Bangor, ME 04401
COMMERCIAL - Bangor, ME
Property Size3,852 SF
Lot Size0.12 Acres
Price / SF$142.78
Days on Market135
Property Features for 40 2nd Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
15 Multi Fam & Serv
Rooms
Basement
Parking features
On Street
Lot features
Near Turnpike/ Interstate, Near Airport, Downtown, Business District, Bus Line, Historic District, Near Shopping, Retail Strip
Standard status
Active
Size
3,852 SF
Lot size
0.12 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
3122
Utilities
Sewer type
Public Sewer
Heating system
Heat Pump (Heating), Natural Gas, Baseboard
Cooling system
Heat Pump
Water source
Public
Building Details
Year built
1897
Flooring type
Hardwood
Building materials
Wood Frame, Aluminum Siding, Vinyl Siding
Roof type
Shingle
Listing Agency:
CENTURY 21 Queen City Real Estate · Century 21 Real Estate
(207) 942-4618
Listed By:
Adam King
(207) 385-6850
Added: Mar 31
Changed: Aug 4
Last Checked: Aug 12 at 2:06PM
MLS# 1651834
Copyright © 2026 Maine Listings. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
40 2nd Street is a fully operational boarding house offering 9 furnished rooms (three rooms per floor) with shared kitchen and bath access, plus two private efficiencies with private baths and kitchenettes. Furnishings convey, supporting an operator-ready setup. The property uses a month-to-month tenancy model intended to balance flexibility with consistent occupancy.
Set on a 0.12-acre lot totaling 3,852 SF, the home was built in 1897. Construction is wood frame with aluminum and vinyl siding and a shingle roof. Hardwood flooring is present, and the property includes a basement.
Heating is provided by natural gas with baseboard heat and heat pump heating, with heat pump cooling as well. Water is public and sewer is public sewer, and parking is available on-street. The zoning is 15 Multi Fam & Serv.
Set on a 0.12-acre lot totaling 3,852 SF, the home was built in 1897. Construction is wood frame with aluminum and vinyl siding and a shingle roof. Hardwood flooring is present, and the property includes a basement.
Heating is provided by natural gas with baseboard heat and heat pump heating, with heat pump cooling as well. Water is public and sewer is public sewer, and parking is available on-street. The zoning is 15 Multi Fam & Serv.
Key Highlights
- 3,852 SF boarding house on a 0.12‑acre lot at 40 2nd Street
- 9 furnished rooms total with shared kitchen and bath access
- Two private efficiencies with private baths and kitchenettes
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$32,468
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.90%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$649,360
$649.4K
Cap Rate 7%
$463,829
$463.8K
Cap Rate 9%
$360,756
$360.8K
Market Conditions
NOI Build-Up for 3,852 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$62.4K $16.20/SF
− Vacancy
−$3.4K −$0.87/SF
EGI
$59.0K $15.33/SF
− OpEx
−$26.6K −$6.90/SF
NOI
$32.5K $8.43/SF
Area
Penobscot County, ME
Vacancy
5.40%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$649,360
Cap Rate 7%
$463,829
Cap Rate 9%
$360,756
Alternative Uses
Best Use
Apartment 5plus
$463.8K
$405.9K – $541.1K
NOI $32,468 @ 7.0% cap · market cap 5.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.24M
$1.09M – $1.45M
NOI $87,086 @ 7.0% cap · market cap 15.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
11
Residential units
Location Intelligence
Trade Area within ½ mile
1,807
Businesses Nearby
Explore this area
Business Placement
Demographics for 04401, ME
44,608
Population
20,932
Households
2.1
Avg Household Size
40
Median Age
37%
College-Educated
96%
High-School Grad
100.1 sq mi
ZIP Area
446
Density / Sq Mi
$66,136
Median Household Income
$40,863
Median Earnings
$1,048
Median Rent
$229,600
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Operational boarding house in a multi-family zoning district with public utilities, on-street parking, and heat pump heating and cooling.
Where is this apartment building located?
The property is located at 40 2nd Street Bangor, ME.
What is the asking price?
The asking price for this property is $549,999.
What are key features of this property?
This property features: 3,852 SF boarding house on a 0.12‑acre lot at 40 2nd Street; 9 furnished rooms total with shared kitchen and bath access; Two private efficiencies with private baths and kitchenettes
