1019 W 18th St

Port Angeles, WA 98362

$870,000B

None bd · None ba · 4,516 sqft · Built 1976 · MultiFamily · Pending · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $12,455/mo
• Mortgage (P&I): −$4,562
• Tax + insurance: −$808
• HOA: −$0
• Vac / Maint / Mgmt: −$2,616
• Net cashflow: $4,469/mo
• Annual: $53,624/yr
• Cap rate: 12.46%
• Cash-on-cash: 22.01%
• DSCR: 1.98
• 1% rule: 1.43%
• Cash to close: $243,600

Investor read

• This is a 6 × 2-bed/1-bath units multifamily listed at $870k.
• At list price, monthly cash flow is $4k ($54k/yr) — positive. Per door: $745/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $870k).
• It's been on market 16 days — a 2% lower offer ($857k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $857k (1.5% 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 $26k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#138 in WA, #2,729 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A+; Watch: employment C-, crime F.
• Port Angeles School District (town): math 55% / reading 65% proficiency, ranked #70 of 291 in WA (top 24%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Dry Creek Elementary (367 students, 70% FRL); Stevens Middle School (492 students, 63% FRL); Port Angeles High School (989 students, 57% FRL) — zoned schools average 63% FRL vs 46% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 273 active listings in the ZIP; 166 units permitted in Clallam County in 2024 (0 in 5+ unit buildings).
• Clallam County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 8y 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.
• Current owner paid $450k; list at $870k implies a 93% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $244k cash investment doubles in ~6 years — after that, you're playing with house money.
• Cap rate 12.5% vs local median 2.8% in Port Angeles — 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 1976 — 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?
• 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.