42 Tarte Rd

Roche Harbor, WA 98250

$875,000B-

3 bd · 2.0 ba · 1,823 sqft · Built 2004 · SingleFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $25,000/mo
• Mortgage (P&I): −$4,589
• Tax + insurance: −$893
• HOA: −$40
• Vac / Maint / Mgmt: −$5,250
• Net cashflow: $14,228/mo
• Annual: $170,739/yr
• Cap rate: 25.81%
• Cash-on-cash: 69.69%
• DSCR: 4.10
• 1% rule: 2.86%
• Cash to close: $245,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $875k.
• At list price, monthly cash flow is $14k ($171k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($25k rent vs $875k).
• It's been on market 20 days — a 2% lower offer ($862k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $862k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $26k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• San Juan Island School District (rural): math 61% / reading 67% proficiency, ranked #36 of 291 in WA (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Friday Harbor Elementary School (321 students, 38% FRL); Friday Harbor High School (245 students, 42% FRL).
• Market conditions: 165 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 99 units permitted in San Juan County in 2024 (0 in 5+ unit buildings).
• San Juan County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $88k; list at $875k implies a 900% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $245k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 25.8% vs local median 0.5% in Roche Harbor — 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 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.
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.