1017 SW 154th St

Burien, WA 98166

$1,925,000D

21 bd · 9.8 ba · 9,250 sqft · Built 1967 · MultiFamily · Active · 139 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $15,907/mo
• Mortgage (P&I): −$10,095
• Tax + insurance: −$2,637
• HOA: −$0
• Vac / Maint / Mgmt: −$3,340
• Net cashflow: $-165/mo
• Annual: $-1,981/yr
• Cap rate: 6.19%
• Cash-on-cash: -0.37%
• DSCR: 0.98
• 1% rule: 0.83%
• Cash to close: $539,000

Investor read

• This is a 7 × 3-bed/?-bath units multifamily listed at $1.93M.
• At list price, monthly cash flow is $-165 ($-2k/yr) — negative. Per door: $-24/mo.
• To cash-flow at today's rent, offer at most $1.90M (1.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.59M (17.4% below list).
• It's been on market 139 days — a 12% lower offer ($1.69M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.59M (17.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $13k of loan paydown is wiped out by about $58k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#115 in WA, #2,330 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A+; Watch: schools D+, crime F, cost of living F.
• Highline School District (suburban): math 36% / reading 49% proficiency, ranked #200 of 291 in WA (top 69%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising (+4.0%/yr); 106 active listings in the ZIP; high-income renter base; 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.
• Current owner paid $910k; list at $1.93M implies a 112% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.2% vs local median 2.1% in Burien — 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 $15,907/mo this rent would consume 166% of the median local household income ($115k/yr) (locally 577% 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 139 days. Have you received any prior offers? Is the seller open to a 17% 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 1967 — 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 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?