3601 S River Pkwy #812

Portland, OR 97239

$235,000D-

1 bd · 1.0 ba · 783 sqft · Built 2006 · Condo · Active · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,828/mo
• Mortgage (P&I): −$1,232
• Tax + insurance: −$392
• HOA: −$640
• Vac / Maint / Mgmt: −$384
• Net cashflow: $-820/mo
• Annual: $-9,839/yr
• Cap rate: 2.11%
• Cash-on-cash: -14.95%
• DSCR: 0.33
• 1% rule: 0.78%
• Cash to close: $65,800

Investor read

• This is a 1-bed/1.0-bath condo listed at $235k. Condition is rated good.
• At list price, monthly cash flow is $-820 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $116k (50.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $183k (22.2% below list).
• It's been on market 19 days — a 2% lower offer ($231k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $116k (50.5% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#72 in OR, #3,256 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A+; Watch: crime F, cost of living F.
• Portland SD 1J (urban): math 46% / reading 58% proficiency, ranked #23 of 183 in OR (top 13%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Capitol Hill Elementary School (333 students, 17% FRL); Jackson Middle School (791 students, 26% FRL); Ida B. Wells-Barnett High School (1,556 students, 14% FRL) — zoned schools average 19% FRL vs 37% district-wide (18 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: HOA is 35% of rent.
• Market conditions: Rents rising (+2.9%/yr); 278 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 68d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 60% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 2,041 units permitted in Multnomah County in 2024 (905 in 5+ unit buildings).
• Multnomah County population projected at +33% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $54k (19%) from the opening price — seller is motivated, your offer sets the floor, not the list.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.