38 A Main St

Methow, WA 98834

$105,000D+

1 bd · 1.0 ba · 672 sqft · Built 1940 · SingleFamily · Active · 29 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $881/mo
• Mortgage (P&I): −$551
• Tax + insurance: −$87
• HOA: −$0
• Vac / Maint / Mgmt: −$185
• Net cashflow: $59/mo
• Annual: $703/yr
• Cap rate: 6.96%
• Cash-on-cash: 2.39%
• DSCR: 1.11
• 1% rule: 0.84%
• Cash to close: $29,400

Investor read

• This is a 1-bed/1.0-bath single-family listed at $105k.
• At list price, monthly cash flow is $59 ($703/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $88k (16.1% below list).
• It's been on market 29 days — a 2% lower offer ($103k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $88k (16.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-2.2%/yr); year-one equity from $726 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 50/100 on livability (#580 in WA) — a working-class tenant base; expect higher turnover. Strengths: housing A+, crime A; Watch: health & safety C-, cost of living D+, amenities F.
• Pateros School District (rural): math 45% / reading 60% proficiency, ranked #130 of 291 in WA (top 45%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Pateros Elementary (129 students, 68% FRL); Pateros High School (140 students, 72% FRL) — zoned schools average 70% FRL vs 54% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 22 active listings in the ZIP; 234 units permitted in Okanogan County in 2024 (0 in 5+ unit buildings).
• Okanogan County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: severe wildfire risk; extreme-heat days projected 8→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.