7723 W Sunset Hwy

Spokane, WA 99224

$1,795,000C+

36 bd · 15.6 ba · — sqft · Built 1962 · MultiFamily · Active · 42 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $21,731/mo
• Mortgage (P&I): −$9,413
• Tax + insurance: −$2,992
• HOA: −$0
• Vac / Maint / Mgmt: −$4,564
• Net cashflow: $4,763/mo
• Annual: $57,152/yr
• Cap rate: 9.48%
• Cash-on-cash: 11.37%
• DSCR: 1.51
• 1% rule: 1.21%
• Cash to close: $502,600

Investor read

• This is a 12 × 3-bed/?-bath units multifamily listed at $1.79M. Condition is rated fair.
• At list price, monthly cash flow is $5k ($57k/yr) — positive. Per door: $397/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($22k rent vs $1.79M).
• It's been on market 42 days — a 3% lower offer ($1.74M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.74M (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $54k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#93 in WA, #1,822 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: crime F.
• Cheney School District (town): math 47% / reading 56% proficiency, ranked #140 of 291 in WA (top 48%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents rising (+1.5%/yr); 381 active listings in the ZIP; solid renter incomes; 3,608 units permitted in Spokane County in 2024 (1,792 in 5+ unit buildings).
• Spokane County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 6 sale attempts; this cycle's ask has dropped $200k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 9.5% vs local median 3.2% in Spokane — 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 $21,731/mo this rent would consume 323% of the median local household income ($81k/yr) (locally 886% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 42 days. Have you received any prior offers? Is the seller open to a 3% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1962 — 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.
• 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?
• 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?

Repairs flagged (vision-AI assessment)

• Major: Exterior siding — Severe weathering and peeling paint
• Major: Landscaping — Overgrown and unkempt lawn