1111 SE 3rd Ave #61

Canby, OR 97013

$178,000F

3 bd · 2.0 ba · 1,456 sqft · Built 1997 · Condo · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,044/mo
• Mortgage (P&I): −$933
• Tax + insurance: −$157
• HOA: −$998
• Vac / Maint / Mgmt: −$429
• Net cashflow: $-473/mo
• Annual: $-5,681/yr
• Cap rate: 3.10%
• Cash-on-cash: -11.40%
• DSCR: 0.49
• 1% rule: 1.15%
• Cash to close: $49,840

Investor read

• This is a 3-bed/2.0-bath condo listed at $178k.
• At list price, monthly cash flow is $-473 ($-6k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $178k).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#43 in OR, #1,056 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+; Watch: cost of living D-.
• Canby SD 86 (town): math 36% / reading 45% proficiency, ranked #14 of 58 in OR (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Philander Lee Elementary School (math 10% / reading 44%, grade F, #288 of 412 statewide, top 73%, 316 students, 37% FRL); Baker Prairie Middle School (math 42% / reading 54%, grade C-, #30 of 128 statewide, top 23%, 557 students, 33% FRL); Canby High School (math 75% / reading 75%, grade A-, #2 of 143 statewide, top 6%, 1,393 students, 27% FRL).
• Watch-outs: HOA is 49% of rent.
• Market conditions: Rents rising (+1.9%/yr); 166 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 946 units permitted in Clackamas County in 2024 (188 in 5+ unit buildings).
• Clackamas County population projected at +25% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 5y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Cap rate 3.1% vs local median 2.1% in Canby — 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?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 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.