1207 Beach Ave

Marietta-Alderwood, WA 98262

$459,000D

2 bd · 1.0 ba · 1,979 sqft · Built 1973 · SingleFamily · Active · 288 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,300/mo
• Mortgage (P&I): −$2,407
• Tax + insurance: −$746
• HOA: −$77
• Vac / Maint / Mgmt: −$483
• Net cashflow: $-1,413/mo
• Annual: $-16,951/yr
• Cap rate: 2.60%
• Cash-on-cash: -13.19%
• DSCR: 0.41
• 1% rule: 0.50%
• Cash to close: $128,520

Investor read

• This is a 2-bed/1.0-bath single-family listed at $459k.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• To cash-flow at today's rent, offer at most $209k (54.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $230k (49.9% below list).
• It's been on market 288 days — a 12% lower offer ($404k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $209k (54.4% below list) — sets the bar for cash-flow.
• In year one you build about $49k of equity ($3k loan paydown + $46k 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: 31 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 2 sale attempts; this cycle's ask has dropped $80k (15%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $170k; list at $459k implies a 170% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$79k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 2.6% vs local median 2.1% in Marietta-Alderwood — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 288 days. Have you received any prior offers? Is the seller open to a 54% concession, seller financing, or rate buy-down credit?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.