894 Caribou Dr

Kotzebue, AK 99752

$369,000B

8 bd · 4.0 ba · 3,128 sqft · Built 1959 · MultiFamily · Active · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,221/mo
• Mortgage (P&I): −$1,935
• Tax + insurance: −$615
• HOA: −$0
• Vac / Maint / Mgmt: −$1,096
• Net cashflow: $1,575/mo
• Annual: $18,894/yr
• Cap rate: 11.41%
• Cash-on-cash: 18.29%
• DSCR: 1.81
• 1% rule: 1.41%
• Cash to close: $103,320

Investor read

• This is a 4 × 2-bed/1-bath units multifamily listed at $369k. Condition is rated fair.
• At list price, monthly cash flow is $2k ($19k/yr) — positive. Per door: $394/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $369k).
• It's been on market 37 days — a 3% lower offer ($358k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $358k (3.0% below list) — sets the bar for market timing.
• In year one you build about $14k of equity ($3k loan paydown + $11k appreciation (3.0% local appreciation)).
• Location reads 70/100 on livability (#17 in AK) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, health & safety A+; Watch: cost of living C-, amenities F, commute F.
• Northwest Arctic Borough School District (rural): math 6% / reading 7% proficiency, ranked #17 of 21 in AK (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 78% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Kotzebue Middle/High School (math 17% / reading 17%, grade F, #55 of 61 statewide, top 92%, 328 students, 96% FRL) — zoned schools average 96% FRL vs 78% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 3 units permitted in Northwest Arctic Borough in 2024 (0 in 5+ unit buildings).
• 8 sale attempts since 8y 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.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $103k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 37 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 1959 — 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 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?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Significant wear and tear
• Minor: kitchen cabinets — Slight wear
• Minor: bathroom fixtures — Basic design
• Minor: flooring — Some wear