1288 44th Ave

Sweet Home, OR 97386

$489,000D-

8 bd · 6.0 ba · 2,560 sqft · Built 2020 · MultiFamily · Pending · 65 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,990/mo
• Mortgage (P&I): −$2,564
• Tax + insurance: −$725
• HOA: −$0
• Vac / Maint / Mgmt: −$838
• Net cashflow: $-138/mo
• Annual: $-1,650/yr
• Cap rate: 5.96%
• Cash-on-cash: -1.21%
• DSCR: 0.95
• 1% rule: 0.82%
• Cash to close: $136,920

Investor read

• This is a 2 × 4-bed/3.0-bath units multifamily listed at $489k.
• At list price, monthly cash flow is $-138 ($-2k/yr) — negative. Per door: $-69/mo.
• To cash-flow at today's rent, offer at most $465k (5.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $399k (18.4% below list).
• It's been on market 65 days — a 6% lower offer ($460k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $399k (18.4% 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 63/100 on livability (#233 in OR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, schools D-, amenities F.
• Sweet Home SD 55 (town): math 26% / reading 42% proficiency, ranked #29 of 58 in OR (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 166 active listings in the ZIP; 311 units permitted in Linn County in 2024 (60 in 5+ unit buildings).
• Linn County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 5 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Cap rate 6.0% vs local median 2.9% in Sweet Home — 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 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 65 days. Have you received any prior offers? Is the seller open to a 18% 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?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?