2533 Island View Ln

Marietta-Alderwood, WA 98262

$695,000D-

2 bd · 1.0 ba · 1,008 sqft · Built 2021 · Other · Pending · 180 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,050/mo
• Mortgage (P&I): −$3,645
• Tax + insurance: −$658
• HOA: −$0
• Vac / Maint / Mgmt: −$431
• Net cashflow: $-2,683/mo
• Annual: $-32,190/yr
• Cap rate: 1.66%
• Cash-on-cash: -16.54%
• DSCR: 0.26
• 1% rule: 0.30%
• Cash to close: $194,600

Investor read

• This is a 2-bed/1.0-bath other listed at $695k.
• At list price, monthly cash flow is $-3k ($-32k/yr) — negative.
• To cash-flow at today's rent, offer at most $221k (68.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $205k (70.5% below list).
• It's been on market 180 days — a 12% lower offer ($612k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $205k (70.5% below list) — sets the bar for 1% rule.
• In year one you build about $74k of equity ($5k loan paydown + $70k appreciation (10.0% local appreciation)).
• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• Ferndale School District (suburban): math 43% / reading 58% proficiency, ranked #138 of 291 in WA (top 47%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 32 active listings in the ZIP; 1,190 units permitted in Whatcom County in 2024 (327 in 5+ unit buildings).
• Whatcom County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $100k; list at $695k implies a 595% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$119k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 180 days. Have you received any prior offers? Is the seller open to a 70% 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.