34400 Brooten Rd

Pacific City, OR 97135

$535,000C+

7 bd · 3.0 ba · 2,359 sqft · Built 1940 · MultiFamily · Active · 71 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,925/mo
• Mortgage (P&I): −$2,806
• Tax + insurance: −$892
• HOA: −$0
• Vac / Maint / Mgmt: −$1,244
• Net cashflow: $983/mo
• Annual: $11,802/yr
• Cap rate: 8.50%
• Cash-on-cash: 7.88%
• DSCR: 1.35
• 1% rule: 1.11%
• Cash to close: $149,800

Investor read

• This is a 7-bed/3.0-bath multifamily listed at $535k. Condition is rated fair.
• At list price, monthly cash flow is $983 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $535k).
• It's been on market 71 days — a 6% lower offer ($503k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $503k (6.0% below list) — sets the bar for market timing.
• In year one you build about $8k of equity ($4k loan paydown + $4k appreciation (0.7% local appreciation)).
• Location reads 67/100 on livability (#173 in OR) — a middle-class / working-renter tenant base. Strengths: crime A+, employment B, housing B; Watch: commute D+, health & safety D+, schools F.
• Nestucca Valley SD 101J (rural): math 33% / reading 50% proficiency, ranked #101 of 183 in OR (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 116 active listings in the ZIP; 86 units permitted in Tillamook County in 2024 (0 in 5+ unit buildings).
• Tillamook County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 9 sale attempts since 20y 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.
• Current owner paid $373k; 43% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (0.7% appreciation + 3.0% rent growth), your $150k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 8.5% vs local median 1.8% in Pacific City — 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

• It's been on market 71 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1940 — 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 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Worn and dated appearance.
• Minor: Bathroom fixtures — Standard fixtures, but could use updates.