2966 Sweet Gum Loop

Blaine, WA 98230

$1,575,000D-

12 bd · 14.0 ba · 5,616 sqft · Built 2026 · MultiFamily · Active · 152 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,646/mo
• Mortgage (P&I): −$8,259
• Tax + insurance: −$2,625
• HOA: −$140
• Vac / Maint / Mgmt: −$2,236
• Net cashflow: $-2,614/mo
• Annual: $-31,370/yr
• Cap rate: 4.30%
• Cash-on-cash: -7.11%
• DSCR: 0.68
• 1% rule: 0.68%
• Cash to close: $441,000

Investor read

• This is a 4 × 3-bed/3.5-bath units multifamily listed at $1.57M.
• At list price, monthly cash flow is $-3k ($-31k/yr) — negative. Per door: $-654/mo.
• To cash-flow at today's rent, offer at most $1.20M (24.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.06M (32.4% below list).
• It's been on market 152 days — a 12% lower offer ($1.39M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.06M (32.4% below list) — sets the bar for 1% rule.
• In year one you build about $168k of equity ($11k loan paydown + $158k appreciation (10.0% local appreciation)).
• Location reads 78/100 on livability (#125 in WA, #2,491 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, housing A; Watch: amenities F, cost of living F.
• Blaine School District (town): math 49% / reading 55% proficiency, ranked #120 of 291 in WA (top 41%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents rising (+3.1%/yr); 461 active listings in the ZIP; solid renter incomes; 1,190 units permitted in Whatcom County in 2024 (327 in 5+ unit buildings).
• Whatcom County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$271k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.3% vs local median 2.2% in Blaine — 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 $10,646/mo this rent would consume 147% of the median local household income ($87k/yr) (locally 454% 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 152 days. Have you received any prior offers? Is the seller open to a 32% 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 B-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?