59831 Sterling Hwy

Cohoe, AK 99610

$200,000C

1 bd · 2.0 ba · 1,216 sqft · Built 1967 · SingleFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,675/mo
• Mortgage (P&I): −$1,049
• Tax + insurance: −$154
• HOA: −$0
• Vac / Maint / Mgmt: −$352
• Net cashflow: $120/mo
• Annual: $1,444/yr
• Cap rate: 7.01%
• Cash-on-cash: 2.58%
• DSCR: 1.11
• 1% rule: 0.84%
• Cash to close: $56,000

Investor read

• This is a 1-bed/2.0-bath single-family listed at $200k.
• At list price, monthly cash flow is $120 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $167k (16.3% below list).
• It's been on market 15 days — a 2% lower offer ($197k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $167k (16.3% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($1k loan paydown + $6k appreciation (3.2% local appreciation)).
• Location reads 60/100 on livability (#79 in AK) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living B+, crime B; Watch: health & safety C-, amenities F, commute F.
• Kenai Peninsula Borough School District (rural): math 35% / reading 48% proficiency, ranked #8 of 21 in AK (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Tustumena Elementary (math 32% / reading 47%, grade F, #75 of 156 statewide, top 52%, 135 students, 47% FRL); Skyview Middle School (math 32% / reading 50%, grade F, #15 of 36 statewide, top 40%, 374 students, 38% FRL); River City Academy (math 44% / reading 64%, grade C-, #7 of 61 statewide, top 10%, 91 students, 29% FRL).
• Market conditions: 66 active listings in the ZIP; 152 units permitted in Kenai Peninsula Borough in 2024 (20 in 5+ unit buildings).
• Kenai Peninsula County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (3.2% appreciation + 3.0% rent growth), your $56k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1967 — 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?
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.