213 1st Ave S

Seattle, WA 98104

$4,900,000D

None bd · None ba · 16,974 sqft · Built 1900 · MultiFamily · Active · 485 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $30,746/mo
• Mortgage (P&I): −$25,696
• Tax + insurance: −$8,167
• HOA: −$0
• Vac / Maint / Mgmt: −$6,457
• Net cashflow: $-9,573/mo
• Annual: $-114,882/yr
• Cap rate: 3.95%
• Cash-on-cash: -8.37%
• DSCR: 0.63
• 1% rule: 0.63%
• Cash to close: $1,372,000

Investor read

• This is a multifamily listed at $4.90M.
• At list price, monthly cash flow is $-10k ($-115k/yr) — negative.
• To cash-flow at today's rent, offer at most $3.51M (28.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $3.07M (37.3% below list).
• It's been on market 485 days — a 12% lower offer ($4.31M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.07M (37.3% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($34k loan paydown + $-28k appreciation (-0.6% local appreciation)).
• Location reads 75/100 on livability (#166 in WA, #4,033 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Seattle Public Schools (urban): math 64% / reading 72% proficiency, ranked #19 of 291 in WA (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents soft (-0.5%/yr); 96 active listings in the ZIP; 10,555 units permitted in King County in 2024 (7,119 in 5+ unit buildings).
• King County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 10, paydown + projected appreciation supports a ~$279k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.9% vs local median 1.6% in Seattle — 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 $30,746/mo this rent would consume 600% of the median local household income ($61k/yr) (locally 1865% 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 485 days. Have you received any prior offers? Is the seller open to a 37% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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 A-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?
• Crime grade is F 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?