1505 E Galer St Unit 1-4

Seattle, WA 98112

$1,425,000D-

20 bd · 16.0 ba · 3,695 sqft · Built 1958 · MultiFamily · Active · 124 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,217/mo
• Mortgage (P&I): −$7,473
• Tax + insurance: −$2,375
• HOA: −$0
• Vac / Maint / Mgmt: −$1,936
• Net cashflow: $-2,566/mo
• Annual: $-30,797/yr
• Cap rate: 4.13%
• Cash-on-cash: -7.72%
• DSCR: 0.66
• 1% rule: 0.65%
• Cash to close: $399,000

Investor read

• This is a 3×1bd/1ba + 1×2bd/1ba units multifamily listed at $1.43M. Condition is rated fair.
• At list price, monthly cash flow is $-3k ($-31k/yr) — negative. Per door: $-642/mo.
• To cash-flow at today's rent, offer at most $1.05M (26.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $922k (35.3% below list).
• It's been on market 124 days — a 12% lower offer ($1.25M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $922k (35.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $43k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#166 in WA, #4,033 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Seattle Public Schools (urban): math 64% / reading 72% proficiency, ranked #19 of 291 in WA (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Stevens Elementary School (174 students, 32% FRL); Washington Middle School (555 students, 65% FRL); Garfield High School (1,642 students, 40% FRL) — zoned schools average 46% FRL vs 30% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.0%/yr); 194 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 32d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 10,555 units permitted in King County in 2024 (7,119 in 5+ unit buildings).
• King County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 4.1% vs local median 1.7% in Seattle — 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 per unit is only 16% of the median local income ($172k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 124 days. Have you received any prior offers? Is the seller open to a 35% 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 1958 — 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.

Repairs flagged (vision-AI assessment)

• Minor: exterior paint — Some discoloration
• Minor: kitchen appliances — Dated design
• Minor: bathroom fixtures — Standard design