6430 NE Agate Beach Rd

Bainbridge Island, WA 98110

$650,000F

3 bd · 2.5 ba · 2,280 sqft · Built 1990 · SingleFamily · Pending · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,843/mo
• Mortgage (P&I): −$3,409
• Tax + insurance: −$865
• HOA: −$0
• Vac / Maint / Mgmt: −$807
• Net cashflow: $-1,238/mo
• Annual: $-14,859/yr
• Cap rate: 4.01%
• Cash-on-cash: -8.16%
• DSCR: 0.64
• 1% rule: 0.59%
• Cash to close: $182,000

Investor read

• This is a 3-bed/2.5-bath single-family listed at $650k.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $431k (33.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $384k (40.9% below list).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $384k (40.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $20k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#111 in WA, #2,257 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, health & safety A; Watch: amenities F, cost of living F.
• Bainbridge Island School District (suburban): math 81% / reading 88% proficiency, ranked #2 of 291 in WA (top 1%) — strong family-tenant draw, lease renewals of 3-5y typical; only 6% free/reduced lunch — higher-income household profile.
• Zoned schools: Bainbridge High School (1,232 students, 11% FRL) — zoned schools at 11% FRL track the district average.
• Market conditions: Rents rising (+3.1%/yr); 219 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 1,294 units permitted in Kitsap County in 2024 (302 in 5+ unit buildings).
• Kitsap County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $27k; list at $650k implies a 2307% gain — meaningful room to come down on a strong offer.
• Cap rate 4.0% vs local median 1.2% in Bainbridge Island — 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

• 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?
• 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?
• 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.