304 W 6th

Ellensburg, WA 98926

$499,000C

24 bd · 4.0 ba · 2,744 sqft · Built 1968 · MultiFamily · Active · 196 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,008/mo
• Mortgage (P&I): −$2,617
• Tax + insurance: −$587
• HOA: −$0
• Vac / Maint / Mgmt: −$1,052
• Net cashflow: $753/mo
• Annual: $9,034/yr
• Cap rate: 8.10%
• Cash-on-cash: 6.47%
• DSCR: 1.29
• 1% rule: 1.00%
• Cash to close: $139,720

Investor read

• This is a 2×2bd/1ba + 2×1bd/1ba units multifamily listed at $499k.
• At list price, monthly cash flow is $753 ($9k/yr) — positive. Per door: $188/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $499k).
• It's been on market 196 days — a 12% lower offer ($439k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $439k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#64 in WA, #1,157 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: employment D-.
• Ellensburg School District (town): math 47% / reading 55% proficiency, ranked #148 of 291 in WA (top 51%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents flat; 302 active listings in the ZIP; 433 units permitted in Kittitas County in 2024 (23 in 5+ unit buildings).
• Kittitas County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $144k; list at $499k implies a 248% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.1% vs local median 2.8% in Ellensburg — 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 $5,008/mo this rent would consume 84% of the median local household income ($71k/yr) (locally 2076% 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 196 days. Have you received any prior offers? Is the seller open to a 12% 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 1968 — 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.
• 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.