3841 S Park Ave

Tacoma, WA 98418

$925,000B

48 bd · 36.0 ba · 3,656 sqft · Built 1950 · MultiFamily · Pending · 231 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,818/mo
• Mortgage (P&I): −$4,851
• Tax + insurance: −$1,343
• HOA: −$0
• Vac / Maint / Mgmt: −$3,112
• Net cashflow: $5,512/mo
• Annual: $66,148/yr
• Cap rate: 13.44%
• Cash-on-cash: 25.54%
• DSCR: 2.14
• 1% rule: 1.60%
• Cash to close: $259,000

Investor read

• This is a 6 × 8-bed/6.0-bath units multifamily listed at $925k.
• At list price, monthly cash flow is $6k ($66k/yr) — positive. Per door: $919/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($15k rent vs $925k).
• It's been on market 231 days — a 12% lower offer ($814k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $814k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $28k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#127 in WA, #2,535 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A+; Watch: cost of living D, crime F.
• Tacoma School District (urban): math 40% / reading 53% proficiency, ranked #169 of 291 in WA (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+11.7%/yr); 56 active listings in the ZIP; solid renter incomes; 3,209 units permitted in Pierce County in 2024 (1,269 in 5+ unit buildings).
• Pierce County population projected at +26% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 11 sale attempts since 20y ago; this cycle's ask has dropped $125k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $400k; list at $925k implies a 131% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $259k cash investment doubles in ~5 years — after that, you're playing with house money.
• Cap rate 13.4% vs local median 2.9% in Tacoma — 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 $14,818/mo this rent would consume 198% of the median local household income ($90k/yr) (locally 185% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 231 days. Have you received any prior offers? Is the seller open to a 12% 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 1950 — 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?