237 Lincoln St Unit 231-241 Lincoln Street

Sitka, AK 99835

$4,190,000C+

None bd · None ba · 30,475 sqft · Built 1951 · MultiFamily · Active · 352 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $51,056/mo
• Mortgage (P&I): −$21,973
• Tax + insurance: −$6,983
• HOA: −$0
• Vac / Maint / Mgmt: −$10,722
• Net cashflow: $11,378/mo
• Annual: $136,537/yr
• Cap rate: 9.55%
• Cash-on-cash: 11.64%
• DSCR: 1.52
• 1% rule: 1.22%
• Cash to close: $1,173,200

Investor read

• This is a multifamily listed at $4.19M. Condition is rated fair.
• At list price, monthly cash flow is $11k ($137k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($51k rent vs $4.19M).
• It's been on market 352 days — a 12% lower offer ($3.69M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.69M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $29k of loan paydown is wiped out by about $126k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#1 in AK, #425 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: cost of living F.
• Sitka School District (town): math 46% / reading 50% proficiency, ranked #4 of 21 in AK (top 19%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Keet Gooshi Heen Elementary (math 60% / reading 51%, grade C, #30 of 156 statewide, top 19%, 274 students, 33% FRL); Blatchley Middle School (math 42% / reading 52%, grade D+, #8 of 36 statewide, top 20%, 265 students, 38% FRL); Sitka High School (math 27% / reading 42%, grade F, #28 of 61 statewide, top 50%, 329 students, 28% FRL) — zoned schools at 33% FRL track the district average.
• Watch-outs: built in 1951 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 43 active listings in the ZIP; 11 units permitted in Sitka City and Borough in 2024 (0 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $1.17M cash investment doubles in ~10 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 352 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1951 — 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?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: kitchen cabinets — slight wear
• Minor: kitchen countertops — slight wear
• Minor: bathroom fixtures — slight wear