1413 Hawthorne Ave

Reedsport, OR 97467

$51,549B+

3 bd · 2.0 ba · 1,782 sqft · Built 1983 · Manufactured · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,850/mo
• Mortgage (P&I): −$270
• Tax + insurance: −$152
• HOA: −$0
• Vac / Maint / Mgmt: −$388
• Net cashflow: $1,039/mo
• Annual: $12,466/yr
• Cap rate: 32.02%
• Cash-on-cash: 91.89%
• DSCR: 5.09
• 1% rule: 3.59%
• Cash to close: $14,434

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $52k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $52k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $357 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#224 in OR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing B; Watch: health & safety C-, employment D, schools F.
• Reedsport SD 105 (town): math 28% / reading 42% proficiency, ranked #143 of 183 in OR (top 78%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 69 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 190 units permitted in Douglas County in 2024 (0 in 5+ unit buildings).
• Douglas County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 14 sale attempts since 21y ago; this cycle's ask has dropped $67k (57%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $30k; list at $52k implies a 72% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 32.0% vs local median 3.1% in Reedsport — 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.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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: Siding — Significant damage
• Major: Flooring — Worn and uneven
• Major: Paint — Worn and peeling
• Major: Landscaping — Overgrown and uneven