Lot 7

Point Baker, AK 99927

$89,000D+

1 bd · None ba · 480 sqft · Built 2021 · SingleFamily · Active · 63 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $825/mo
• Mortgage (P&I): −$467
• Tax + insurance: −$148
• HOA: −$0
• Vac / Maint / Mgmt: −$173
• Net cashflow: $37/mo
• Annual: $443/yr
• Cap rate: 6.79%
• Cash-on-cash: 1.78%
• DSCR: 1.08
• 1% rule: 0.93%
• Cash to close: $24,920

Investor read

• This is a 1-bed/?-bath single-family listed at $89k. Condition is rated poor.
• At list price, monthly cash flow is $37 ($443/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $83k (7.3% below list).
• It's been on market 63 days — a 6% lower offer ($84k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $83k (7.3% below list) — sets the bar for 1% rule.
• In year one you build about $3k of equity ($615 loan paydown + $3k appreciation (3.0% local appreciation)).
• Location reads 37/100 on livability (#317 in AK) — a limited-amenity area; tenant pool skews transient or value-seeking. Strengths: crime A, cost of living B; Watch: health & safety C-, amenities F, commute F.
• Market conditions: 1 active listings in the ZIP; 2 units permitted in Prince of Wales-Hyder Census Area in 2024 (0 in 5+ unit buildings).
• At projected returns (3.0% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 63 days. Have you received any prior offers? Is the seller open to a 7% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition, with visible damage and potential leaks.
• Major: exterior siding — The exterior siding is damaged and weathered, with visible rot and peeling paint.
• Major: flooring — The flooring appears to be in poor condition, with visible wear and tear.
• Major: interior walls — The interior walls are in poor condition, with visible damage and peeling paint.
• Major: HVAC system — The HVAC system appears to be old and in poor condition, with visible rust and wear.