1308 Sloan St

Badger, AK 99705

$180,000B-

None bd · 9.0 ba · 2,834 sqft · Built 1974 · MultiFamily · Active · 94 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,415/mo
• Mortgage (P&I): −$944
• Tax + insurance: −$300
• HOA: −$0
• Vac / Maint / Mgmt: −$1,137
• Net cashflow: $3,034/mo
• Annual: $36,407/yr
• Cap rate: 26.52%
• Cash-on-cash: 72.24%
• DSCR: 4.21
• 1% rule: 3.01%
• Cash to close: $50,400

Investor read

• This is a 2×1bd/1ba + 1×2bd/1ba units multifamily listed at $180k. Condition is rated poor.
• At list price, monthly cash flow is $3k ($36k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $180k).
• It's been on market 94 days — a 9% lower offer ($164k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $164k (9.0% below list) — sets the bar for market timing.
• 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.
• Location reads 63/100 on livability (#49 in AK) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: cost of living C-, schools D, crime F.
• Fairbanks North Star Borough School District (urban): math 33% / reading 45% proficiency, ranked #10 of 21 in AK (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising fast (+5.1%/yr); 248 active listings in the ZIP; solid renter incomes; 1 units permitted in Fairbanks North Star Borough in 2024 (0 in 5+ unit buildings).
• Fairbanks North Star County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 5.1% rent growth), your $50k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 26.5% vs local median 4.9% in Badger — 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.
• At $5,415/mo this rent would consume 67% of the median local household income ($97k/yr) (locally 237% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 94 days. Have you received any prior offers? Is the seller open to a 9% 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 1974 — 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.
• 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?

Repairs flagged (vision-AI assessment)

• Major: roof — heavy snow accumulation
• Major: exterior siding — snow-covered roof, heavy snow accumulation
• Major: interior walls — paint peeling, exposed drywall
• Major: kitchen cabinets — dated cabinets
• Major: bathroom fixtures — dated fixtures
• Major: HVAC system — snow-covered roof, heavy snow accumulation