1085 E 4th S

Mountain Home, ID 83647

$700,000D

24 bd · 20.0 ba · 2,800 sqft · Built 1943 · MultiFamily · Active · 43 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,789/mo
• Mortgage (P&I): −$3,671
• Tax + insurance: −$1,627
• HOA: −$0
• Vac / Maint / Mgmt: −$1,216
• Net cashflow: $-725/mo
• Annual: $-8,696/yr
• Cap rate: 5.84%
• Cash-on-cash: -1.62%
• DSCR: 0.93
• 1% rule: 0.83%
• Cash to close: $196,000

Investor read

• This is a 4 × 2-bed/1-bath units multifamily listed at $700k. Condition is rated good.
• At list price, monthly cash flow is $-725 ($-9k/yr) — negative. Per door: $-181/mo.
• To cash-flow at today's rent, offer at most $595k (15.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $579k (17.3% below list).
• It's been on market 43 days — a 3% lower offer ($679k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $579k (17.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#26 in ID, #3,741 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, amenities F, commute F.
• Mountain Home District (town): math 28% / reading 44% proficiency, ranked #78 of 92 in ID (top 85%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mountain Home Sr High School (math 21% / reading 44%, grade F, #117 of 169 statewide, top 70%, 960 students, 33% FRL).
• Watch-outs: flood insurance adds $460/mo; built in 1943 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+6.2%/yr); 347 active listings in the ZIP; 129 units permitted in Elmore County in 2024 (0 in 5+ unit buildings).
• Elmore County population projected at -35% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); severe wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 3.1% in Mountain Home — 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.
• At $5,789/mo this rent would consume 109% of the median local household income ($64k/yr) (locally 317% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 43 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1943 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?