737/741 NE Skidmore St

Portland, OR 97211

$725,000F

5 bd · 2.0 ba · 3,052 sqft · Built 1902 · SingleFamily · Active · 104 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,879/mo
• Mortgage (P&I): −$3,802
• Tax + insurance: −$1,208
• HOA: −$0
• Vac / Maint / Mgmt: −$815
• Net cashflow: $-1,946/mo
• Annual: $-23,352/yr
• Cap rate: 3.07%
• Cash-on-cash: -11.50%
• DSCR: 0.49
• 1% rule: 0.54%
• Cash to close: $203,000

Investor read

• This is a 5-bed/2.0-bath single-family listed at $725k. Condition is rated good.
• At list price, monthly cash flow is $-2k ($-23k/yr) — negative.
• To cash-flow at today's rent, offer at most $443k (38.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $388k (46.5% below list).
• It's been on market 104 days — a 9% lower offer ($660k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $388k (46.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#72 in OR, #3,256 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A+; Watch: crime F, cost of living F.
• Portland SD 1J (urban): math 46% / reading 58% proficiency, ranked #23 of 183 in OR (top 13%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Sabin Elementary School (312 students, 25% FRL); Harriet Tubman Middle School (360 students, 65% FRL); Grant High School (2,156 students, 14% FRL) — zoned schools at 35% FRL track the district average.
• Watch-outs: built in 1902 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 247 active listings in the ZIP; 13 comparable units currently listed for rent nearby; rentals lingering (median 37d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 69% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 2,041 units permitted in Multnomah County in 2024 (905 in 5+ unit buildings).
• Multnomah County population projected at +33% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts; this cycle's ask has dropped $74k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 3.1% vs local median 2.3% in Portland — 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.
• This rent runs 41% of the median local income ($113k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 104 days. Have you received any prior offers? Is the seller open to a 46% concession, seller financing, or rate buy-down credit?
• Built in 1902 — 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.
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.