744 Tarte Rd

Roche Harbor, WA 98250

$868,000F

1 bd · 1.0 ba · 1,270 sqft · Built 2014 · Other · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,352/mo
• Mortgage (P&I): −$4,552
• Tax + insurance: −$814
• HOA: −$40
• Vac / Maint / Mgmt: −$284
• Net cashflow: $-4,338/mo
• Annual: $-52,052/yr
• Cap rate: 0.30%
• Cash-on-cash: -21.42%
• DSCR: 0.05
• 1% rule: 0.16%
• Cash to close: $243,040

Investor read

• This is a 1-bed/1.0-bath other listed at $868k.
• At list price, monthly cash flow is $-4k ($-52k/yr) — negative.
• To cash-flow at today's rent, offer at most $109k (87.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $135k (84.4% below list).
• It's been on market 60 days — a 3% lower offer ($842k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $109k (87.5% below list) — sets the bar for cash-flow.
• 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: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• San Juan Island School District (rural): math 61% / reading 67% proficiency, ranked #36 of 291 in WA (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Friday Harbor Elementary School (321 students, 38% FRL); Friday Harbor Middle School (178 students, 50% FRL); Friday Harbor High School (245 students, 42% FRL).
• Market conditions: 165 active listings in the ZIP; 99 units permitted in San Juan County in 2024 (0 in 5+ unit buildings).
• San Juan County population projected at +6% 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 $489k; list at $868k implies a 78% gain — meaningful room to come down on a strong offer.
• Cap rate 0.3% vs local median 0.5% in Roche Harbor — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• It's been on market 60 days. Have you received any prior offers? Is the seller open to a 87% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.