638 W 74th Ave

Anchorage, AK 99518

$548,000B

16 bd · 16.0 ba · 2,800 sqft · Built 1972 · MultiFamily · Active · 217 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,006/mo
• Mortgage (P&I): −$2,874
• Tax + insurance: −$837
• HOA: −$0
• Vac / Maint / Mgmt: −$1,471
• Net cashflow: $1,824/mo
• Annual: $21,884/yr
• Cap rate: 10.29%
• Cash-on-cash: 14.26%
• DSCR: 1.63
• 1% rule: 1.28%
• Cash to close: $153,440

Investor read

• This is a 4 × 1-bed/1-bath units multifamily listed at $548k.
• At list price, monthly cash flow is $2k ($22k/yr) — positive. Per door: $456/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $548k).
• It's been on market 217 days — a 12% lower offer ($482k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $482k (12.0% below list) — sets the bar for market timing.
• In year one you build about $38k of equity ($4k loan paydown + $34k appreciation (6.2% local appreciation)).
• Location reads 78/100 on livability (#6 in AK, #2,553 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Anchorage School District (urban): math 37% / reading 43% proficiency, ranked #6 of 21 in AK (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 49 active listings in the ZIP; solid renter incomes; 306 units permitted in Anchorage Municipality in 2024 (90 in 5+ unit buildings).
• Anchorage County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 27y ago; this cycle's ask has dropped $77k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (6.2% appreciation + 3.0% rent growth), your $153k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$60k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 10.3% vs local median 3.8% in Anchorage — 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 $7,006/mo this rent would consume 89% of the median local household income ($94k/yr) (locally 385% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 217 days. Have you received any prior offers? Is the seller open to a 12% 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 1972 — 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 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?
• 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?