2233 W Merlyn Way

Post Falls, ID 83854

$134,900B-

2 bd · 1.0 ba · 784 sqft · Built 1995 · SingleFamily · Pending · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,682/mo
• Mortgage (P&I): −$707
• Tax + insurance: −$225
• HOA: −$0
• Vac / Maint / Mgmt: −$353
• Net cashflow: $396/mo
• Annual: $4,754/yr
• Cap rate: 9.82%
• Cash-on-cash: 12.59%
• DSCR: 1.56
• 1% rule: 1.25%
• Cash to close: $37,772

Investor read

• This is a 2-bed/1.0-bath single-family listed at $135k. Condition is rated good.
• At list price, monthly cash flow is $396 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $135k).
• It's been on market 23 days — a 2% lower offer ($133k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $133k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $933 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 88/100 on livability (#1 in ID, #198 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, housing A+.
• Post Falls District (suburban): math 43% / reading 56% proficiency, ranked #31 of 92 in ID (top 34%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: West Ridge Elementary School (math 36% / reading 45%, grade F, #223 of 357 statewide, top 63%, 440 students, 28% FRL); River City Middle School (math 35% / reading 54%, grade D, #52 of 109 statewide, top 51%, 589 students, 29% FRL); Post Falls High School (math 33% / reading 63%, grade D, #53 of 169 statewide, top 32%, 1,565 students, 22% FRL).
• Market conditions: Rents rising (+1.5%/yr); 625 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 1,606 units permitted in Kootenai County in 2024 (154 in 5+ unit buildings).
• Kootenai County population projected at +33% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 3y ago; this cycle's ask is 4% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Cap rate 9.8% vs local median 2.4% in Post Falls — 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

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.