13717 32nd Ave NE

Seattle, WA 98125

$1,250,000D

9 bd · 8.1 ba · 5,064 sqft · Built 1969 · MultiFamily · Pending · 187 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,377/mo
• Mortgage (P&I): −$6,555
• Tax + insurance: −$1,691
• HOA: −$0
• Vac / Maint / Mgmt: −$1,759
• Net cashflow: $-1,628/mo
• Annual: $-19,539/yr
• Cap rate: 4.73%
• Cash-on-cash: -5.58%
• DSCR: 0.75
• 1% rule: 0.67%
• Cash to close: $350,000

Investor read

• This is a 3 × 2-bed/1-bath units multifamily listed at $1.25M.
• At list price, monthly cash flow is $-2k ($-20k/yr) — negative. Per door: $-543/mo.
• To cash-flow at today's rent, offer at most $962k (23.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $838k (33.0% below list).
• It's been on market 187 days — a 12% lower offer ($1.10M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $838k (33.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $9k of loan paydown is wiped out by about $38k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#166 in WA, #4,033 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Seattle Public Schools (urban): math 64% / reading 72% proficiency, ranked #19 of 291 in WA (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents flat; 208 active listings in the ZIP; solid renter incomes; 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.
• 2 sale attempts since 23y ago; this cycle's ask has dropped $400k (24%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $615k; list at $1.25M implies a 103% gain — meaningful room to come down on a strong offer.
• Cap rate 4.7% vs local median 1.6% in Seattle — 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 $8,377/mo this rent would consume 101% of the median local household income ($100k/yr) (locally 2720% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 187 days. Have you received any prior offers? Is the seller open to a 33% 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?
• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?