48 SW Chehalis · Chehalis, WA 98532

$349,000

3 bd · 3.0 ba · 5,497 sqft · MultiFamily · 107 Days on market

Built 1940 Fair condition 10,019 sqft lot $63/sqft · 39% below area Est $576k · 39% under ↓ 7% since listing

---

Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +24.7/30.0
• ARV discount +15.0/15.0
• DSCR +8.0/10.0
• 1% rule +6.4/10.0
• Schools +4.9/10.0
• Livability +3.6/5.0
• Rent growth +2.5/5.0
• Condition / age +2.2/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 1 unit. estimate disagrees with records

Listing remarks

Corner lot in quasi light industrial district. Very close to freeway and downtown. The lower level consists of approx. 3,000 of showroom, shop, warehouse, office and restrooms which has been the home of Northwest Cooling & Heating for decades. Exterior entrance at SW corner of the building, leads to stairway for the three 1 bedroom/1 bath apartments. There is also a common laundry for the apartment units which is also located upstairs. Roof on main part of building replaced 4 years ago, awning roof replaced 3 years ago.

Key facts

• Common laundry
• Exterior entrance
• Corner lot

Tags

• CORNER LOT
• LIGHT INDUSTRIAL DISTRICT
• SHOWROOM SHOP WAREHOUSE OFFICE
• COMMON LAUNDRY
• EXTERIOR ENTRANCE
• STAIRWAY FOR APARTMENTS

What this means for you Summary

Snapshot

• This is a 3-bed/3.0-bath multifamily listed at $349k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $728 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $349k).
• Recommended offer: $318k (9.0% below list) — sets the bar for market timing.
• Cap rate 8.8% vs local median 2.1% in Chehalis — 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.

Location & tenants

• Location reads 72/100 on livability (#214 in WA) — a middle-class / working-renter tenant base. Strengths: amenities A+, health & safety A+, housing A-; Watch: crime F, commute F, employment F.
• Chehalis School District (town): math 49% / reading 61% proficiency, ranked #102 of 291 in WA (top 35%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 239 active listings in the ZIP; 265 units permitted in Lewis County in 2024 (44 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Lewis County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 107 days — a 9% lower offer ($318k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $317,590 (9.0% below list)

Questions for the listing agent

1. It's been on market 107 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
3. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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.
9. 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.
10. 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.

Investment metrics

• 1% rule: 1.14% ✓
• Cap rate: 8.80%
• Cash-on-cash: 8.94%
• DSCR: 1.40
• GRM: 7.3

CMA / ARV

• ARV (median comp): $575,992
• List price: $349,000
• Delta: -39.41%
• Verdict: UNDERPRICED
• Comps: 3 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -2.7%
• Equity multiple: 0.90×
• Total profit: $-10,102
• Equity at exit: $52,037

10-year hold

• IRR: 7.0%
• Equity multiple: 1.52×
• Total profit: $51,184
• Equity at exit: $30,175

Cash invested: $97,720 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 28 Tenant-Leaning
• State Washington: 28 Tenant-Leaning · D+8
• County: — inherits STATE
• City: — inherits STATE

Just-cause statewide (2021); Seattle layers rent control restrictions + relocation assistance; very tenant-friendly.

Methodology + full state rankings →

ZIP-level market 98532

• Active inventory: 239
• Price-to-rent: 21.9×

Monthly cashflow live

• Estimated rent: $3,975 medium
• Mortgage (P&I): −$1,830
• Tax est. 1.5%: −$436 /mo · $5,235/yr
• Insurance: −$145
• HOA: −$0
• Vacancy / Maint / Mgmt: −$835
• Net cashflow: $728

Break-even live

Break-even rent $3,053

Max offer price $349,000

Occupancy floor 77%

Sensitivity live

Price	-10% $970	-5% $849	+0% $728	+5% $608	+10% $487
Rent	-10% $414	-5% $571	+0% $728	+5% $885	+10% $1,042
Rate	-1.0pp $904	-0.5pp $817	base $728	+0.5pp $638	+1.0pp $546

3-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 3× units	1	1	$3,975
Total (3 units)			$3,975

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $87,250
• Closing costs: $10,470
• Reserves months: —
• Total cash needed: —

Listing history 18 events

1. 2026-06-19
   days on market $349,000 Active 107 DOM
2. 2026-06-18
   days on market $349,000 Active 106 DOM
3. 2026-06-17
   days on market $349,000 Active 105 DOM
4. 2026-06-16
   days on market $349,000 Active 104 DOM
5. 2026-06-15
   days on market $349,000 Active 103 DOM
6. 2026-06-14
   days on market $349,000 Active 101 DOM
7. 2026-06-12
   days on market $349,000 Active 100 DOM
8. 2026-06-09
   days on market $349,000 Active 97 DOM
9. 2026-06-08
   days on market $349,000 Active 96 DOM
10. 2026-06-07
    days on market $349,000 Active 95 DOM
11. 2026-06-07
    days on market $349,000 Active 94 DOM
12. 2026-06-03
    days on market $349,000 Active 91 DOM
13. 2026-06-02
    days on market $349,000 Active 90 DOM
14. 2026-06-01
    days on market $349,000 Active 89 DOM
15. 2026-05-31
    days on market $349,000 Active 88 DOM
16. 2026-05-30
    days on market $349,000 Active 87 DOM
17. 2026-04-13
    price $349,000
18. 2026-03-04
    listed $375,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Taxation est. · year 1

• Rental income: $47,700
• − Mortgage interest: −$19,549
• − Property taxes: −$5,235
• − Insurance: −$1,745
• − Repairs & maintenance: −$3,816
• − Management: −$3,816
• − Depreciation: −$10,153
• Taxable income: $3,386
• Est. tax owed @ 24.0%: −$813
• After-tax cash flow: $7,928/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 12 photos

Fair 45/100 Moderate rehab

The property requires moderate renovations to improve its condition and appeal to buyers and renters. Upgrading the kitchen and bathrooms, repairing the exterior, and replacing HVAC units would significantly increase its value.

Repairs flagged

• Moderate exterior siding — weathered and peeling
• Minor kitchen cabinets — dated and could be replaced
• Minor bathroom fixtures — basic and could be upgraded
• Minor HVAC units — some wear and could be replaced

Value-add opportunities

• Both update kitchen cabinets and appliances — modernizing kitchen would appeal to buyers and renters
• Both upgrade bathroom fixtures — modernizing bathrooms would appeal to buyers and renters
• Both repair and paint exterior siding — improving curb appeal would attract more buyers and renters
• Both replace HVAC units — modernizing HVAC would improve comfort and energy efficiency

Renovation cost estimate screening

Repair item	Severity	Est. cost
exterior siding · weathered and peeling	Moderate	$3,000–15,000
kitchen cabinets · dated and could be replaced	Minor	$500–3,000
bathroom fixtures · basic and could be upgraded	Minor	$500–3,000
HVAC units · some wear and could be replaced	Minor	$500–3,000
Total estimated repair cost · 4 items		$4,500–24,000

Value-add ROI direction

• Both update kitchen cabinets and appliances — modernizing kitchen would appeal to buyers and renters ↑
• Both upgrade bathroom fixtures — modernizing bathrooms would appeal to buyers and renters ↑
• Both repair and paint exterior siding — improving curb appeal would attract more buyers and renters ↑
• Both replace HVAC units — modernizing HVAC would improve comfort and energy efficiency ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Chehalis School District
• NCES district ID: 5301170
• Math proficiency: 49% ▼ -1.00%
• Reading proficiency: 61% ▲ 1.00%
• Median HH income: $49,504
• Composite: 48.68/100
• National rank: #4566
• State rank: #102 of 291 in WA

Livability — Chehalis

• Score: 72/100
• State rank: #214
• US rank: #6062

Category grades

Amenities A+ Commute F Cost of living B+ Crime F Employment F Housing A- Health & safety A+ User ratings D+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Chehalis, WA
• Population (ZIP): 26,531

Population outlook (Lewis County) Hauer SSP2

• Today (2025): 75,749 people
• By 2030: 74,647 · -1.5%
• By 2040: 71,310 · -5.9%
• By 2050: 67,748 · -10.6%
• By 2075: 59,829 · -21.0%
• By 2100: 52,293 · -31.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (81%)
• Race & ethnicity: White 81% Two or more races 11% Hispanic / Latino 9% Asian 2%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Portuguese 6% Italian 3% Lithuanian 3%
• Foreign-born: 5% · Canada, South Korea
• Languages at home: 93% English-only · Spanish 5% Other Indo-European 1% Korean 1%

Political lean MEDSL · Lewis

• 2024 margin: Solid R (+33.0) · D 32.0% · R 65.0% · Other 3.0%
• 2008→2024 swing: -13.8pp toward R · 2008: -19.2pp · 2024: -33.0pp
• All cycles: 2024: R+33.0 2020: R+32.8 2016: R+36.2 2012: R+23.5 2008: R+19.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -468.24%
• Current HPI: 235.6346
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 4.65%
• F500 in state: 22

Industry mix (Fortune 500 HQ in WA)

Industry	F500 HQs	Revenue
▸Retail	2	$269B
▸Technology / Retail	1	$638B
▸Technology	1	$245B
▸Telecommunications	1	$38B
▸Food / Beverage	1	$36B
▸Automotive / Trucks	1	$34B

Price history

-6.9% since first listed

2 events — show timeline

• 2026-04-13 Price Changed $349,000 NWMLS as Distributed by MLS Grid
• 2026-03-04 Listed $375,000 NWMLS as Distributed by MLS Grid