3634 Harper St

Clinton, WA 98236

$409,500D

3 bd · 2.0 ba · 1,521 sqft · Built 1977 · SingleFamily · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,000/mo
• Mortgage (P&I): −$2,147
• Tax + insurance: −$435
• HOA: −$47
• Vac / Maint / Mgmt: −$630
• Net cashflow: $-259/mo
• Annual: $-3,111/yr
• Cap rate: 5.53%
• Cash-on-cash: -2.71%
• DSCR: 0.88
• 1% rule: 0.73%
• Cash to close: $114,660

Investor read

• This is a 3-bed/2.0-bath single-family listed at $410k.
• At list price, monthly cash flow is $-259 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $364k (11.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $300k (26.7% below list).
• It's been on market 40 days — a 3% lower offer ($397k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $300k (26.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#500 in WA) — a working-class tenant base; expect higher turnover. Strengths: crime A+, employment B+, housing B; Watch: amenities F, commute F, cost of living F.
• South Whidbey School District (rural): math 47% / reading 64% proficiency, ranked #87 of 291 in WA (top 30%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: South Whidbey Elementary (571 students, 35% FRL); South Whidbey Middle (204 students, 41% FRL); South Whidbey High School (384 students, 30% FRL).
• Market conditions: 78 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 402 units permitted in Island County in 2024 (54 in 5+ unit buildings).
• Island County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Cap rate 5.5% vs local median 1.7% in Clinton — 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?
• It's been on market 40 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.