Cottonwood Stone Creek Plan

North Lakes, AK 99654

$295,000F

3 bd · 2.0 ba · 1,092 sqft · Built — · SingleFamily · Active · 289 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,558/mo
• Mortgage (P&I): −$2,171
• Tax + insurance: −$690
• HOA: −$0
• Vac / Maint / Mgmt: −$537
• Net cashflow: $-840/mo
• Annual: $-10,085/yr
• Cap rate: 3.86%
• Cash-on-cash: -8.70%
• DSCR: 0.61
• 1% rule: 0.62%
• Cash to close: $115,921

Investor read

• This is a 3-bed/2.0-bath single-family listed at $295k. Condition is rated excellent.
• At list price, monthly cash flow is $-840 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $292k (0.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $256k (13.3% below list).
• It's been on market 289 days — a 12% lower offer ($260k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $256k (13.3% 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 $12k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Matanuska-Susitna Borough School District (town): math 42% / reading 50% proficiency, ranked #5 of 21 in AK (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Finger Lake Elementary (math 57% / reading 52%, grade C, #31 of 156 statewide, top 26%, 425 students, 43% FRL); Colony Middle School (math 39% / reading 54%, grade D+, #9 of 36 statewide, top 23%, 735 students, 31% FRL); Colony High School (math 29% / reading 38%, grade F, #32 of 61 statewide, top 52%, 1,117 students, 29% FRL) — zoned schools at 34% FRL track the district average.
• Market conditions: Rents flat; 804 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 119d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 91 units permitted in Matanuska-Susitna Borough in 2024 (25 in 5+ unit buildings).
• Matanuska-Susitna County population projected at +50% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• This rent runs 31% of the median local income ($98k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 289 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• 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.
• 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?
• 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.