218 S 2nd St · Shelton, WA 98584

$165,000

2 bd · 1.0 ba · 1,355 sqft · SingleFamily public records · 98 Days on market

Built 1893 3,600 sqft lot

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Why this score? — see what drove the C grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +25.2/30.0
• DSCR +8.3/10.0
• ARV discount +7.5/15.0
• 1% rule +5.4/10.0
• Livability +3.7/5.0
• Schools +3.4/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Residential or commercially zoned. Good downtown location for a live work space. This 3 bedroom 1.75 bath home will need a remodel. Foundation completed recently. Room behind the home to build a garage or additional living space.

Key facts

• Live work space
• Downtown location
• Foundation completed

Tags

• DOWNTOWN LOCATION
• LIVE WORK SPACE
• FOUNDATION COMPLETED

Property features AI

Finance

• Other: Lot size approximately 0.0826 acres; Zoning: City
• Financial info: Listing terms: Cash
• HOA & community: Community features include nearby park and playground; Bus line nearby

Exterior

• Parking: Off-street parking; no garage
• Security: Partially fenced yard
• Utilities: Public water; Sewer connected; Electric power
• Home design: Single-family residence, two-story house; Built on lot; Main level entry; Faces west; Property condition: fair
• Construction: Cement construction materials; Composition roof; Concrete ribbon foundation; Built on lot
• Exterior features: Cement/concrete exterior; Partially fenced lot; Alley access with curbs, paved streets and sidewalks; Level topography

Interior

• Kitchen: Kitchen with eating space (on main level)
• Bedrooms: 3 bedrooms (all on the second floor)
• Flooring: Softwood flooring; Vinyl flooring
• Bathrooms: One full bathroom (main level); One three-quarter bathroom (upper level); Includes 1 bathtub and 1 shower
• Heating & cooling: No heating; No cooling; Electric energy source
• Interior features: Water heater; No basement; Partially fenced (security feature)
• Laundry & utility: Electric water heater located in upstairs bathroom

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $165k.

Deal economics

• At list price, monthly cash flow is $-57 ($-690/yr) — negative.
• To cash-flow at today's rent, offer at most $155k (6.2% below list).
• Meets the 1% rule at list price ($2k rent vs $165k).
• Recommended offer: $150k (9.0% below list) — sets the bar for market timing.
• Cap rate 9.0% vs local median 3.1% in Shelton — 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.

Location & tenants

• Location reads 73/100 on livability (#203 in WA) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, amenities A-; Watch: employment D+, crime F, commute F.
• Shelton School District (town): math 31% / reading 43% proficiency, ranked #237 of 291 in WA (top 81%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Evergreen Elementary School (429 students, 86% FRL); Shelton High School (1,473 students, 62% FRL) — zoned schools average 74% FRL vs 59% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 439 active listings in the ZIP; solid renter incomes; 299 units permitted in Mason County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Mason County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 98 days — a 9% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 15y 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.
• Current owner paid $35k; list at $165k implies a 371% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: flood insurance adds $427/mo; built in 1893 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $150,150 (9.0% below list)

Questions for the listing agent

1. 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?
2. It's been on market 98 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
3. Built in 1893 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. 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?
8. 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?
9. 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.
10. 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.
11. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 1.04% ✓
• Cap rate: 8.98%
• Cash-on-cash: 9.59%
• DSCR: 1.43
• GRM: 8.0

CMA / ARV

• ARV (on-the-fly): $390,240
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
414 W Wyandotte Ave	0.56mi	3/2.0 (+1)	1,325 (-2%)	7mo	$369,500	$279	55
607 S 14th St	0.75mi	3/1.5 (+1)	1,338 (-1%)	1mo	$367,000	$274	55
903 Kineo Ave	0.63mi	2/1.0	1,220 (-10%)	9mo	$315,000	$258	47
447 Chestnut St	0.62mi	3/2.0 (+1)	1,496 (+10%)	0mo	$420,000	$281	44
1226 W Birch St	0.73mi	3/2.0 (+1)	1,266 (-7%)	2mo	$399,000	$315	44
722 718 W Franklin St	0.36mi	3/2.0 (+1)	1,156 (-15%)	8mo	$220,000	$190	43
429 Chestnut St	0.61mi	3/2.0 (+1)	1,246 (-8%)	8mo	$402,500	$323	42
40 E Sylvan Heights Ln	0.66mi	3/2.0 (+1)	1,225 (-10%)	4mo	$390,000	$318	41
645 Ellinor Ave	0.72mi	2/1.0	1,164 (-14%)	3mo	$335,000	$288	41
420 W University Ave	0.75mi	3/2.0 (+1)	1,452 (+7%)	9mo	$425,000	$293	36
605 W Euclid Ave	0.57mi	3/2.0 (+1)	1,556 (+15%)	6mo	$380,000	$244	35
20 E Tall Timber Ln	0.68mi	3/2.0 (+1)	1,530 (+13%)	5mo	$499,000	$326	34

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -18.6%
• Equity multiple: 0.35×
• Total profit: $-30,203
• Equity at exit: $24,602

10-year hold

• IRR: -10.7%
• Equity multiple: 0.35×
• Total profit: $-30,220
• Equity at exit: $14,266

Cash invested: $46,200 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 28 Tenant-Leaning
• State Washington: 28 Tenant-Leaning · D+8
• County: — inherits STATE
• City: — inherits STATE

Just-cause statewide (2021); Seattle layers rent control restrictions + relocation assistance; very tenant-friendly.

Methodology + full state rankings →

ZIP-level market 98584

• Active inventory: 439
• Price-to-rent: 8.0×

Monthly cashflow live

• Estimated rent: $1,721 medium
• Mortgage (P&I): −$865
• Tax from tax record: −$56 /mo · $674/yr
• Insurance: −$69
• Flood insurance flood zone: −$427 /mo · $5,118/yr
• HOA: −$0
• Vacancy / Maint / Mgmt: −$361
• Net cashflow: $-57

Break-even live

Break-even rent $1,793

Max offer price $154,843

Occupancy floor 98%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $41,250
• Closing costs: $4,950
• Reserves months: —
• Total cash needed: —

Listing history 23 events

1. 2026-06-19
   days on market $165,000 Active 98 DOM
2. 2026-06-18
   days on market $165,000 Active 97 DOM
3. 2026-06-17
   days on market $165,000 Active 96 DOM
4. 2026-06-16
   days on market $165,000 Active 95 DOM
5. 2026-06-15
   days on market $165,000 Active 94 DOM
6. 2026-06-14
   days on market $165,000 Active 92 DOM
7. 2026-06-12
   days on market $165,000 Active 91 DOM
8. 2026-06-09
   days on market $165,000 Active 88 DOM
9. 2026-06-08
   days on market $165,000 Active 87 DOM
10. 2026-06-07
    days on market $165,000 Active 86 DOM
11. 2026-06-02
    days on market $165,000 Active 81 DOM
12. 2026-06-01
    days on market $165,000 Active 80 DOM
13. 2026-05-31
    days on market $165,000 Active 79 DOM
14. 2026-05-30
    days on market $165,000 Active 78 DOM
15. 2026-03-13
    listed $165,000 Active
16. 2013-04-02
    historical
17. 2013-04-01
    soldstatus $35,000 Sold
18. 2013-03-29
    soldstatus $35,000
19. 2012-06-18
    price $39,900
20. 2012-03-02
    status Active
21. 2012-02-26
    status Pending Inspection
22. 2012-02-18
    price $45,000
23. 2011-05-18
    listed $59,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast WA · Resets to sale price

• Current annual tax: $674 · $56/mo
• Projected year-2 tax: $1,617 · $135/mo
• Expected delta: +$943/yr (+$79/mo · 139.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 7/10 Severe FEMA zone AE · 99% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 3/10 Moderate 7 d/yr ≥88°F today · 15 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 7/10 Severe 9 unhealthy d/yr today · 10 by 30 yrs out

Taxation est. · year 1

• Rental income: $20,647
• − Mortgage interest: −$9,243
• − Property taxes: −$674
• − Insurance: −$5,944
• − Repairs & maintenance: −$1,652
• − Management: −$1,652
• − Depreciation: −$4,800
• Taxable loss: −$3,317
• Est. tax savings @ 24.0%: +$796
• After-tax cash flow: $106/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Shelton School District
• NCES district ID: 5307900
• Math proficiency: 31% ▼ -1.00%
• Reading proficiency: 43% ▼ -3.00%
• Median HH income: $45,467
• Composite: 34.1/100
• National rank: #10288
• State rank: #237 of 291 in WA

Livability — Shelton

• Score: 73/100
• State rank: #203
• US rank: #5586

Category grades

Amenities A- Commute F Cost of living A- Crime F Employment D+ Housing A+ Health & safety A+ User ratings C

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Shelton, WA
• County: Mason County · 40,606 people
• City population: 40,606
• Metro: Shelton, WA
• Population (ZIP): 40,606
• Household income: $78,610
• Rent vs Own: 20.2% rent · 79.8% own
• Severe rent burden: 687.0

Population outlook (Mason County) Hauer SSP2

• Today (2025): 60,005 people
• By 2030: 58,567 · -2.4%
• By 2040: 54,735 · -8.8%
• By 2050: 51,470 · -14.2%
• By 2075: 46,276 · -22.9%
• By 2100: 39,883 · -33.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (72%)
• Race & ethnicity: White 72% Hispanic / Latino 15% Two or more races 11% Native American 3%
• Hispanic origin (detail): Mexican 8%
• Common ancestry: Portuguese 4% Slovak 3% Italian 2%
• Foreign-born: 8% · Canada
• Languages at home: 88% English-only · Spanish 10%

Political lean MEDSL · Mason

• 2024 margin: Toss-up / Even · D 47.2% · R 49.7% · Other 3.2%
• 2008→2024 swing: -11.2pp toward R · 2008: 8.7pp · 2024: -2.5pp
• All cycles: 2024: R+2.5 2020: R+3.9 2016: R+6.0 2012: D+6.9 2008: D+8.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -232.42%
• Current HPI: 199.0698
• Rent YoY: —
• Metro: Shelton, WA
• State GDP YoY: ▲ 4.65%
• F500 in state: 22

Industry mix (Fortune 500 HQ in WA)

Industry	F500 HQs	Revenue
▸Retail	2	$269B
▸Technology / Retail	1	$638B
▸Technology	1	$245B
▸Telecommunications	1	$38B
▸Food / Beverage	1	$36B
▸Automotive / Trucks	1	$34B

Price history

+179.7% since first listed

9 events — show timeline

• 2026-03-13 Listed $165,000 NWMLS as Distributed by MLS Grid
• 2013-04-02 Delisted — NWMLS as Distributed by MLS Grid
• 2013-04-01 Sold (MLS) $35,000 NWMLS as Distributed by MLS Grid
• 2013-03-29 Sold (Public Records) $35,000 Public Records
• 2012-06-18 Price Changed $39,900 NWMLS as Distributed by MLS Grid
• 2012-03-02 Relisted — NWMLS as Distributed by MLS Grid
• 2012-02-26 Pending — NWMLS as Distributed by MLS Grid
• 2012-02-18 Price Changed $45,000 NWMLS as Distributed by MLS Grid
• 2011-05-18 Listed $59,000 NWMLS as Distributed by MLS Grid

Property tax history

-1.7%/yr

Latest (2026): $674 · -29.2% YoY. Source: county tax records.