12461 NE Woodinville Dr

Woodinville, WA 98072

$10,500,000B+

None bd · None ba · 3,553 sqft · Built 1949 · MultiFamily · Active · 42 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $334,394/mo
• Mortgage (P&I): −$55,063
• Tax + insurance: −$17,500
• HOA: −$0
• Vac / Maint / Mgmt: −$70,223
• Net cashflow: $191,608/mo
• Annual: $2,299,297/yr
• Cap rate: 28.19%
• Cash-on-cash: 78.21%
• DSCR: 4.48
• 1% rule: 3.18%
• Cash to close: $2,940,000

Investor read

• This is a multifamily listed at $10.50M. Condition is rated excellent.
• At list price, monthly cash flow is $192k ($2.30M/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($334k rent vs $10.50M).
• It's been on market 42 days — a 3% lower offer ($10.19M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $10.19M (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $73k of loan paydown is wiped out by about $315k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#18 in WA, #349 nationally) — a professional / high-income tenant draw. Strengths: schools A+, amenities A+, commute A+; Watch: cost of living F.
• Northshore School District (suburban): math 69% / reading 78% proficiency, ranked #9 of 291 in WA (top 3%) — strong family-tenant draw, lease renewals of 3-5y typical; only 12% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1949 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-1.0%/yr); 192 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 10,555 units permitted in King County in 2024 (7,119 in 5+ unit buildings).
• King County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $2.94M cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 28.2% vs local median 1.2% in Woodinville — 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 $334,394/mo this rent would consume 2282% of the median local household income ($176k/yr) (locally 588% 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 42 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1949 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.