950 E B St

Madras, OR 97741

$375,000D

4 bd · 3.0 ba · 1,956 sqft · Built 1952 · SingleFamily · Active · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,244/mo
• Mortgage (P&I): −$1,967
• Tax + insurance: −$625
• HOA: −$0
• Vac / Maint / Mgmt: −$471
• Net cashflow: $-819/mo
• Annual: $-9,824/yr
• Cap rate: 3.67%
• Cash-on-cash: -9.36%
• DSCR: 0.58
• 1% rule: 0.60%
• Cash to close: $105,000

Investor read

• This is a 4-bed/3.0-bath single-family listed at $375k.
• At list price, monthly cash flow is $-819 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $257k (31.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $224k (40.2% below list).
• It's been on market 35 days — a 3% lower offer ($364k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $224k (40.2% below list) — sets the bar for 1% rule.
• In year one you build about $40k of equity ($3k loan paydown + $38k appreciation (10.0% local appreciation)).
• Location reads 67/100 on livability (#180 in OR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: amenities D+, crime D-, commute F.
• Jefferson County SD 509J (rural): math 19% / reading 30% proficiency, ranked #55 of 58 in OR (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 77% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Madras Elementary School (math 17% / reading 22%, grade F, #377 of 412 statewide, top 93%, 363 students, 94% FRL); Jefferson County Middle School (math 21% / reading 39%, grade F, #84 of 128 statewide, top 66%, 473 students, 94% FRL); Madras High School (math 8% / reading 47%, grade F, #114 of 143 statewide, top 80%, 781 students, 93% FRL) — zoned schools average 94% FRL vs 77% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 260 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 108 units permitted in Jefferson County in 2024 (5 in 5+ unit buildings).
• Jefferson County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 12y ago; this cycle's ask is 4% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $242k; list at $375k implies a 55% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$64k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.7% vs local median 2.9% in Madras — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 35 days. Have you received any prior offers? Is the seller open to a 40% concession, seller financing, or rate buy-down credit?
• Built in 1952 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.