17/19 Driftwood Way

Unalaska, AK 99692

$1,100,000D

16 bd · 8.0 ba · 8,512 sqft · Built 1991 · MultiFamily · Active · 773 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,688/mo
• Mortgage (P&I): −$5,769
• Tax + insurance: −$823
• HOA: −$0
• Vac / Maint / Mgmt: −$1,614
• Net cashflow: $-518/mo
• Annual: $-6,211/yr
• Cap rate: 5.73%
• Cash-on-cash: -2.02%
• DSCR: 0.91
• 1% rule: 0.70%
• Cash to close: $308,000

Investor read

• This is a 4 × 4-bed/2.0-bath units multifamily listed at $1.10M.
• At list price, monthly cash flow is $-518 ($-6k/yr) — negative. Per door: $-129/mo.
• To cash-flow at today's rent, offer at most $1.01M (8.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $769k (30.1% below list).
• It's been on market 773 days — a 12% lower offer ($968k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $769k (30.1% below list) — sets the bar for 1% rule.
• In year one you build about $41k of equity ($8k loan paydown + $33k appreciation (3.0% local appreciation)).
• Location reads 62/100 on livability (#55 in AK) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Unalaska City School District (rural): math 49% / reading 54% proficiency, ranked #4 of 53 in AK (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Eagle'S View Elementary School (math 52% / reading 52%, grade C-, #43 of 156 statewide, top 32%, 184 students, 20% FRL); Unalaska Jr/Sr High School (math 47% / reading 52%, grade D, #11 of 61 statewide, top 18%, 162 students, 18% FRL) — zoned schools at 19% FRL track the district average.
• Market conditions: 2 active listings in the ZIP.
• Aleutians West County population projected at +60% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 30y ago; this cycle's ask has dropped $245k (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$66k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 773 days. Have you received any prior offers? Is the seller open to a 30% 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?
• 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?
• 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?