1403/1407 Redmond Ave

Badger, AK 99705

$419,000B+

9 bd · 10.5 ba · 4,308 sqft · Built 1980 · MultiFamily · Active · 150 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,566/mo
• Mortgage (P&I): −$2,197
• Tax + insurance: −$698
• HOA: −$0
• Vac / Maint / Mgmt: −$1,799
• Net cashflow: $3,872/mo
• Annual: $46,458/yr
• Cap rate: 17.38%
• Cash-on-cash: 39.60%
• DSCR: 2.76
• 1% rule: 2.04%
• Cash to close: $117,320

Investor read

• This is a 3 × 6-bed/3.5-bath units multifamily listed at $419k. Condition is rated good.
• At list price, monthly cash flow is $4k ($46k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $419k).
• It's been on market 150 days — a 12% lower offer ($369k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $369k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#49 in AK) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+; Watch: cost of living C-, schools D, crime F.
• Fairbanks North Star Borough School District (urban): math 33% / reading 45% proficiency, ranked #10 of 21 in AK (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising fast (+5.1%/yr); 248 active listings in the ZIP; solid renter incomes; 1 units permitted in Fairbanks North Star Borough in 2024 (0 in 5+ unit buildings).
• Fairbanks North Star County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 5.1% rent growth), your $117k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 17.4% vs local median 4.9% in Badger — 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 $8,566/mo this rent would consume 106% of the median local household income ($97k/yr) (locally 237% 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 150 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?
• 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?
• 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?
• 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.