313 E Woodworth St #4

Sedro-Woolley, WA 98284

$944,000D

9 bd · 3.9 ba · 3,294 sqft · Built 1978 · MultiFamily · Active · 321 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,911/mo
• Mortgage (P&I): −$4,950
• Tax + insurance: −$1,573
• HOA: −$0
• Vac / Maint / Mgmt: −$1,451
• Net cashflow: $-1,064/mo
• Annual: $-12,769/yr
• Cap rate: 4.94%
• Cash-on-cash: -4.83%
• DSCR: 0.79
• 1% rule: 0.73%
• Cash to close: $264,320

Investor read

• This is a 3 × 3-bed/?-bath units multifamily listed at $944k.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative. Per door: $-355/mo.
• To cash-flow at today's rent, offer at most $790k (16.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $691k (26.8% below list).
• It's been on market 321 days — a 12% lower offer ($831k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $691k (26.8% below list) — sets the bar for 1% rule.
• In year one you build about $101k of equity ($7k loan paydown + $94k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Sedro-Woolley School District (suburban): math 47% / reading 58% proficiency, ranked #117 of 291 in WA (top 40%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Central Elementary School (464 students, 61% FRL); Cascade Middle School (697 students, 58% FRL); Sedro Woolley Senior High School (1,276 students, 49% FRL).
• Market conditions: 232 active listings in the ZIP; solid renter incomes; 561 units permitted in Skagit County in 2024 (270 in 5+ unit buildings).
• Skagit County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• By year 2, paydown + projected appreciation supports a ~$162k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.9% vs local median 2.4% in Sedro-Woolley — 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 $6,911/mo this rent would consume 89% of the median local household income ($93k/yr) (locally 502% 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 321 days. Have you received any prior offers? Is the seller open to a 27% 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 1978 — 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.
• 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?