1610 Decatur St SW

Olympia, WA 98502

$819,000D

6 bd · 6.0 ba · 2,964 sqft · Built 2026 · MultiFamily · Active · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,290/mo
• Mortgage (P&I): −$3,295
• Tax + insurance: −$1,047
• HOA: −$0
• Vac / Maint / Mgmt: −$901
• Net cashflow: $-953/mo
• Annual: $-11,441/yr
• Cap rate: 4.47%
• Cash-on-cash: -6.50%
• DSCR: 0.71
• 1% rule: 0.68%
• Cash to close: $175,943

Investor read

• This is a 2 × 3-bed/3.0-bath units multifamily listed at $819k.
• At list price, monthly cash flow is $-953 ($-11k/yr) — negative. Per door: $-477/mo.
• To cash-flow at today's rent, offer at most $490k (40.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $429k (47.6% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $429k (47.6% below list) — sets the bar for 1% rule.
• In year one you build about $67k of equity ($4k loan paydown + $63k appreciation (10.0% local appreciation)).
• Location reads 83/100 on livability (#58 in WA, #1,036 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: crime F, cost of living D-.
• Olympia School District (urban): math 66% / reading 75% proficiency, ranked #17 of 291 in WA (top 6%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Julia Butler Hansen Elementary (484 students, 48% FRL); Capital High School (1,326 students, 38% FRL) — zoned schools average 43% FRL vs 25% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+3.2%/yr); 304 active listings in the ZIP; solid renter incomes; 1,222 units permitted in Thurston County in 2024 (508 in 5+ unit buildings).
• Thurston County population projected at +27% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$108k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.5% vs local median 2.4% in Olympia — 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 $4,290/mo this rent would consume 56% of the median local household income ($92k/yr) (locally 1811% 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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.