97 Huckleberry Cir

Saxman, AK 99901

$505,000D

5 bd · 3.0 ba · 2,121 sqft · Built 1979 · MultiFamily · Active · 251 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,827/mo
• Mortgage (P&I): −$2,648
• Tax + insurance: −$546
• HOA: −$0
• Vac / Maint / Mgmt: −$804
• Net cashflow: $-170/mo
• Annual: $-2,046/yr
• Cap rate: 5.89%
• Cash-on-cash: -1.45%
• DSCR: 0.94
• 1% rule: 0.76%
• Cash to close: $141,400

Investor read

• This is a 2 × 2-bed/1.5-bath units multifamily listed at $505k.
• At list price, monthly cash flow is $-170 ($-2k/yr) — negative. Per door: $-85/mo.
• To cash-flow at today's rent, offer at most $475k (6.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $383k (24.2% below list).
• It's been on market 251 days — a 12% lower offer ($444k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $383k (24.2% 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 $15k of value loss. Plan a longer hold.
• Location reads 54/100 on livability (#157 in AK) — a working-class tenant base; expect higher turnover. Strengths: cost of living B+; Watch: health & safety C-, crime F, amenities F.
• Zoned schools: Houghtaling Elementary (math 37% / reading 42%, grade F, #75 of 156 statewide, top 52%, 310 students, 59% FRL); Schoenbar Middle School (math 30% / reading 36%, grade F, #26 of 36 statewide, top 71%, 269 students, 40% FRL); Ketchikan High School (math 42% / reading 42%, grade F, #17 of 61 statewide, top 32%, 498 students, 28% FRL).
• Market conditions: 100 active listings in the ZIP; 73 units permitted in Ketchikan Gateway Borough in 2024 (14 in 5+ unit buildings).
• Ketchikan Gateway County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

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 251 days. Have you received any prior offers? Is the seller open to a 24% 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 1979 — 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?