1810 Wilson Ave

Bellingham, WA 98225

$925,000F

2 bd · 1.0 ba · 2,592 sqft · Built 1971 · MultiFamily · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,417/mo
• Mortgage (P&I): −$4,851
• Tax + insurance: −$946
• HOA: −$0
• Vac / Maint / Mgmt: −$1,138
• Net cashflow: $-1,518/mo
• Annual: $-18,213/yr
• Cap rate: 4.32%
• Cash-on-cash: -7.03%
• DSCR: 0.69
• 1% rule: 0.59%
• Cash to close: $259,000

Investor read

• This is a 3 × 1-bed/?-bath units multifamily listed at $925k.
• At list price, monthly cash flow is $-2k ($-18k/yr) — negative. Per door: $-506/mo.
• To cash-flow at today's rent, offer at most $657k (29.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $542k (41.4% below list).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $542k (41.4% below list) — sets the bar for 1% rule.
• 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 80/100 on livability (#102 in WA, #1,947 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: crime F, cost of living F.
• Bellingham School District (urban): math 47% / reading 63% proficiency, ranked #106 of 291 in WA (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Lowell Elementary School (303 students, 35% FRL); Sehome High School (1,163 students, 25% FRL) — zoned schools at 30% FRL track the district average.
• Market conditions: Rents rising (+2.7%/yr); 241 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.
• Current owner paid $268k; list at $925k implies a 245% gain — meaningful room to come down on a strong offer.
• Cap rate 4.3% vs local median 2.0% in Bellingham — 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 $5,417/mo this rent would consume 102% of the median local household income ($64k/yr) (locally 4351% 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?
• 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 1971 — 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.
• 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?
• 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?