2426 Redoubt Ave

Kenai, AK 99611

$1,955,000B-

1 bd · 576.0 ba · 6,888 sqft · Built 1977 · MultiFamily · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $38,025/mo
• Mortgage (P&I): −$10,252
• Tax + insurance: −$1,379
• HOA: −$0
• Vac / Maint / Mgmt: −$7,985
• Net cashflow: $18,408/mo
• Annual: $220,897/yr
• Cap rate: 17.59%
• Cash-on-cash: 40.35%
• DSCR: 2.80
• 1% rule: 1.95%
• Cash to close: $547,400

Investor read

• This is a 24 × 24-bed/24.0-bath units multifamily listed at $1.96M.
• At list price, monthly cash flow is $18k ($221k/yr) — positive. Per door: $767/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($38k rent vs $1.96M).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $14k of loan paydown is wiped out by about $59k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#38 in AK) — a middle-class / working-renter tenant base. Strengths: housing A+, crime B+; Watch: health & safety C-, amenities F, commute F.
• Kenai Peninsula Borough School District (rural): math 35% / reading 48% proficiency, ranked #8 of 21 in AK (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mt. View Elementary (math 32% / reading 37%, grade F, #93 of 156 statewide, top 66%, 403 students, 51% FRL); Kenai Middle School (math 28% / reading 47%, grade F, #19 of 36 statewide, top 51%, 411 students, 38% FRL); Kenai Central High School (math 32% / reading 52%, grade F, #17 of 61 statewide, top 32%, 463 students, 32% FRL).
• Market conditions: 213 active listings in the ZIP; 152 units permitted in Kenai Peninsula Borough in 2024 (20 in 5+ unit buildings).
• Kenai Peninsula County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 26y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $547k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 17.6% vs local median 3.7% in Kenai — 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.

Questions for listing agent

• 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 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.