110 N Delaware Ave Unit A/B

Wenatchee, WA 98801

$449,900D

4 bd · 2.0 ba · 2,612 sqft · Built 1906 · MultiFamily · Active · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,712/mo
• Mortgage (P&I): −$2,359
• Tax + insurance: −$750
• HOA: −$0
• Vac / Maint / Mgmt: −$780
• Net cashflow: $-177/mo
• Annual: $-2,120/yr
• Cap rate: 5.82%
• Cash-on-cash: -1.68%
• DSCR: 0.93
• 1% rule: 0.83%
• Cash to close: $125,972

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $450k. Condition is rated average.
• At list price, monthly cash flow is $-177 ($-2k/yr) — negative. Per door: $-88/mo.
• To cash-flow at today's rent, offer at most $424k (5.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $371k (17.5% below list).
• It's been on market 93 days — a 9% lower offer ($409k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $371k (17.5% 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 $13k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#211 in WA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, housing A, amenities B; Watch: crime C-, commute F.
• Wenatchee School District (urban): math 38% / reading 54% proficiency, ranked #175 of 291 in WA (top 60%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1906 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 326 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 762 units permitted in Chelan County in 2024 (377 in 5+ unit buildings).
• Chelan County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 2.9% in Wenatchee — 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 $3,712/mo this rent would consume 55% of the median local household income ($81k/yr) (locally 1278% 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 93 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 1906 — 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.
• 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?

Repairs flagged (vision-AI assessment)

• Minor: kitchen countertops — Cluttered and items are on countertops.
• Minor: bathroom countertops — Cluttered and items are on countertops.
• Moderate: exterior siding — Weathered and may need repainting or replacement.
• Moderate: flooring — Worn and may need replacement or refinishing.
• Moderate: interior walls/paint — Chipped and may need repainting.
• Moderate: windows — Not new and may need replacement or caulking.