1390 Cedar Ave

Marysville, WA 98270

$650,000D

4 bd · 2.0 ba · 2,199 sqft · Built 1947 · MultiFamily · Active · 192 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,933/mo
• Mortgage (P&I): −$3,409
• Tax + insurance: −$704
• HOA: −$0
• Vac / Maint / Mgmt: −$1,036
• Net cashflow: $-216/mo
• Annual: $-2,589/yr
• Cap rate: 5.89%
• Cash-on-cash: -1.42%
• DSCR: 0.94
• 1% rule: 0.76%
• Cash to close: $182,000

Investor read

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $650k.
• At list price, monthly cash flow is $-216 ($-3k/yr) — negative. Per door: $-108/mo.
• To cash-flow at today's rent, offer at most $612k (5.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $493k (24.1% below list).
• It's been on market 192 days — a 12% lower offer ($572k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $493k (24.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#43 in WA, #768 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+; Watch: cost of living F.
• Marysville School District (suburban): math 36% / reading 51% proficiency, ranked #177 of 291 in WA (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Liberty Elementary (425 students, 70% FRL); Marysville Middle School (644 students, 66% FRL); Marysville Pilchuck High School (1,238 students, 63% FRL) — zoned schools average 66% FRL vs 40% district-wide (26 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.7%/yr); 442 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 3,982 units permitted in Snohomish County in 2024 (1,492 in 5+ unit buildings).
• Snohomish County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 sale attempts since 19y ago; this cycle's ask has dropped $65k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $157k; list at $650k implies a 314% gain — meaningful room to come down on a strong offer.
• Cap rate 5.9% vs local median 3.0% in Marysville — 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 $4,933/mo this rent would consume 55% of the median local household income ($108k/yr) (locally 1150% 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 192 days. Have you received any prior offers? Is the seller open to a 24% 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 1947 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?