6509 NE Deer Run St

Hillsboro, OR 97124

$340,000D-

3 bd · 3.0 ba · 1,310 sqft · Built 2003 · SingleFamily · Pending · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,330/mo
• Mortgage (P&I): −$1,783
• Tax + insurance: −$412
• HOA: −$42
• Vac / Maint / Mgmt: −$489
• Net cashflow: $-396/mo
• Annual: $-4,754/yr
• Cap rate: 4.89%
• Cash-on-cash: -4.99%
• DSCR: 0.78
• 1% rule: 0.69%
• Cash to close: $95,200

Investor read

• This is a 3-bed/3.0-bath single-family listed at $340k.
• At list price, monthly cash flow is $-396 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $270k (20.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $233k (31.5% below list).
• It's been on market 27 days — a 2% lower offer ($335k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $233k (31.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 87/100 on livability (#13 in OR, #282 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: crime D+, cost of living F.
• Hillsboro SD 1J (urban): math 35% / reading 46% proficiency, ranked #13 of 58 in OR (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Orenco Elementary School (math 42% / reading 52%, grade D-, #132 of 412 statewide, top 34%, 476 students, 37% FRL); J W Poynter Middle School (math 42% / reading 62%, grade C+, #25 of 128 statewide, top 19%, 654 students, 62% FRL); Liberty High School (math 50% / reading 70%, grade C+, #23 of 143 statewide, top 19%, 1,454 students, 46% FRL).
• Zoned-school proficiency averages 53% at this address vs 40% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Hillsboro SD 1J average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents soft (-1.3%/yr); 233 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 2,224 units permitted in Washington County in 2024 (242 in 5+ unit buildings).
• Washington County population projected at +33% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 23y ago; this cycle's ask has dropped $23k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $258k; 32% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 4.9% vs local median 3.0% in Hillsboro — 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

• 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.