19605 River Rd #59

Gladstone, OR 97027

$78,500B-

2 bd · 1.0 ba · 672 sqft · Built 1967 · Other · Pending · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,693/mo
• Mortgage (P&I): −$412
• Tax + insurance: −$131
• HOA: −$0
• Vac / Maint / Mgmt: −$355
• Net cashflow: $795/mo
• Annual: $9,536/yr
• Cap rate: 18.44%
• Cash-on-cash: 43.38%
• DSCR: 2.93
• 1% rule: 2.16%
• Cash to close: $21,980

Investor read

• This is a 2-bed/1.0-bath other listed at $78k.
• At list price, monthly cash flow is $795 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $78k).
• It's been on market 26 days — a 2% lower offer ($77k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $77k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $543 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 89/100 on livability (#7 in OR, #168 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: cost of living D-.
• Gladstone SD 115 (suburban): math 75% / reading 75% proficiency, ranked #2 of 58 in OR (top 3%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: John Wetten Elementary School (574 students, 42% FRL); Walter L Kraxberger Middle School (373 students, 39% FRL); Gladstone High School (594 students, 35% FRL) — zoned schools at 38% FRL track the district average.
• Market conditions: Rents flat; 43 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); 43% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 946 units permitted in Clackamas County in 2024 (188 in 5+ unit buildings).
• Clackamas County population projected at +25% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 0.6% rent growth), your $22k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 18.4% vs local median 2.9% in Gladstone — 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.

Questions for listing agent

• Built in 1967 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.