4106 North Star St

Anchorage, AK 99503

$399,000D+

4 bd · 4.0 ba · 2,650 sqft · Built 1959 · MultiFamily · Active · 395 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,007/mo
• Mortgage (P&I): −$2,092
• Tax + insurance: −$684
• HOA: −$0
• Vac / Maint / Mgmt: −$631
• Net cashflow: $-401/mo
• Annual: $-4,811/yr
• Cap rate: 5.09%
• Cash-on-cash: -4.31%
• DSCR: 0.81
• 1% rule: 0.75%
• Cash to close: $111,720

Investor read

• This is a 2 × 1-bed/1.0-bath units multifamily listed at $399k.
• At list price, monthly cash flow is $-401 ($-5k/yr) — negative. Per door: $-200/mo.
• To cash-flow at today's rent, offer at most $328k (17.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $301k (24.6% below list).
• It's been on market 395 days — a 12% lower offer ($351k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $301k (24.6% below list) — sets the bar for 1% rule.
• In year one you build about $15k of equity ($3k loan paydown + $12k appreciation (3.1% local appreciation)).
• Location reads 78/100 on livability (#6 in AK, #2,553 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Anchorage School District (urban): math 37% / reading 43% proficiency, ranked #6 of 21 in AK (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Willow Crest Elementary (math 22% / reading 22%, grade F, #128 of 156 statewide, top 86%, 284 students, 100% FRL); Romig Middle School (math 24% / reading 44%, grade F, #22 of 36 statewide, top 63%, 720 students, 37% FRL); West High School (math 32% / reading 27%, grade F, #39 of 61 statewide, top 65%, 1,763 students, 40% FRL) — zoned schools average 59% FRL vs 38% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.3%/yr); 67 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 306 units permitted in Anchorage Municipality in 2024 (90 in 5+ unit buildings).
• Anchorage County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 30y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 3, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.1% vs local median 3.8% in Anchorage — 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 $3,007/mo this rent would consume 47% of the median local household income ($76k/yr) (locally 747% 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 395 days. Have you received any prior offers? Is the seller open to a 25% 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 1959 — 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.
• 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?