25611 126th Pl SE

Kent, WA 98030

$570,000D

6 bd · 3.0 ba · 2,770 sqft · Built 1977 · SingleFamily · Pending · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,072/mo
• Mortgage (P&I): −$2,989
• Tax + insurance: −$736
• HOA: −$0
• Vac / Maint / Mgmt: −$855
• Net cashflow: $-509/mo
• Annual: $-6,103/yr
• Cap rate: 5.22%
• Cash-on-cash: -3.82%
• DSCR: 0.83
• 1% rule: 0.71%
• Cash to close: $159,600

Investor read

• This is a 6-bed/3.0-bath single-family listed at $570k.
• At list price, monthly cash flow is $-509 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $480k (15.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $407k (28.6% below list).
• It's been on market 38 days — a 3% lower offer ($553k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $407k (28.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#109 in WA, #2,154 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A+; Watch: crime F, cost of living F.
• Kent School District (urban): math 47% / reading 57% proficiency, ranked #109 of 291 in WA (top 38%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Millennium Elementary School (488 students, 77% FRL); Mattson Middle School (617 students, 54% FRL); Kentlake High School (1,440 students, 54% FRL) — zoned schools average 62% FRL vs 41% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+3.7%/yr); 173 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 10,555 units permitted in King County in 2024 (7,119 in 5+ unit buildings).
• King County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 15y ago; this cycle's ask is 4% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $155k; list at $570k implies a 268% gain — meaningful room to come down on a strong offer.
• Cap rate 5.2% vs local median 2.6% in Kent — 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 $4,072/mo this rent would consume 53% of the median local household income ($92k/yr) (locally 1415% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• It's been on market 38 days. Have you received any prior offers? Is the seller open to a 29% concession, seller financing, or rate buy-down credit?
• Built in 1977 — 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.
• 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.