2432 Burtis Ave

Badger, AK 99705

$114,000B

2 bd · 1.0 ba · 768 sqft · Built 1976 · SingleFamily · Active · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,070/mo
• Mortgage (P&I): −$598
• Tax + insurance: −$136
• HOA: −$0
• Vac / Maint / Mgmt: −$435
• Net cashflow: $901/mo
• Annual: $10,812/yr
• Cap rate: 15.78%
• Cash-on-cash: 33.87%
• DSCR: 2.51
• 1% rule: 1.82%
• Cash to close: $31,920

Investor read

• This is a 2-bed/1.0-bath single-family listed at $114k. Condition is rated fair.
• At list price, monthly cash flow is $901 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $114k).
• It's been on market 99 days — a 9% lower offer ($104k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $104k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $788 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#49 in AK) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: cost of living C-, crime F, amenities F.
• Fairbanks North Star Borough School District (urban): math 33% / reading 45% proficiency, ranked #10 of 21 in AK (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: North Pole Elementary (math 32% / reading 37%, grade F, #93 of 156 statewide, top 66%, 347 students, 37% FRL); North Pole Middle School (math 25% / reading 45%, grade F, #21 of 36 statewide, top 57%, 531 students, 39% FRL); North Pole High School (math 32% / reading 32%, grade F, #33 of 61 statewide, top 57%, 617 students, 29% FRL).
• Market conditions: Rents rising fast (+5.1%/yr); 400 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 1 units permitted in Fairbanks North Star Borough in 2024 (0 in 5+ unit buildings).
• Fairbanks North Star County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 9 sale attempts since 3y ago; this cycle's ask is 7762% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (-3.0% appreciation + 5.1% rent growth), your $32k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 15.8% vs local median 4.8% in Badger — 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

• It's been on market 99 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1976 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — Significant damage and potential leaks are visible in the independent image.
• Major: exterior siding — Peeling paint and siding damage are evident in the independent image.
• Major: HVAC — The independent image suggests the need for HVAC repairs.
• Major: plumbing — The independent image suggests the need for plumbing repairs.
• Major: landscaping — Overgrown vegetation and lack of landscaping are evident in the independent image.