1002 N J St

Tacoma, WA 98403

$3,250,000F

294 bd · 226.8 ba · 10,975 sqft · Built 1967 · MultiFamily · Active · 299 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $22,573/mo
• Mortgage (P&I): −$17,043
• Tax + insurance: −$3,845
• HOA: −$0
• Vac / Maint / Mgmt: −$4,740
• Net cashflow: $-3,056/mo
• Annual: $-36,669/yr
• Cap rate: 5.16%
• Cash-on-cash: -4.03%
• DSCR: 0.82
• 1% rule: 0.69%
• Cash to close: $910,000

Investor read

• This is a 7×1bd/1.5ba + 6×2bd/1.5ba + 1×3bd/2.0ba units multifamily listed at $3.25M.
• At list price, monthly cash flow is $-3k ($-37k/yr) — negative. Per door: $-218/mo.
• To cash-flow at today's rent, offer at most $2.71M (16.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $2.26M (30.5% below list).
• It's been on market 299 days — a 12% lower offer ($2.86M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.26M (30.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $22k of loan paydown is wiped out by about $98k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#127 in WA, #2,535 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A+; Watch: cost of living D, crime F.
• Tacoma School District (urban): math 40% / reading 53% proficiency, ranked #169 of 291 in WA (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lowell Elementary School (319 students, 25% FRL); Hilltop Heritage Middle School (524 students, 60% FRL); Stadium High School (1,571 students, 36% FRL).
• Market conditions: Rents rising (+1.9%/yr); 41 active listings in the ZIP; solid renter incomes; 3,209 units permitted in Pierce County in 2024 (1,269 in 5+ unit buildings).
• Pierce County population projected at +26% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 19y 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 $1.90M; list at $3.25M implies a 71% gain — meaningful room to come down on a strong offer.
• Cap rate 5.2% vs local median 2.9% in Tacoma — 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 $22,573/mo this rent would consume 308% of the median local household income ($88k/yr) (locally 328% 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?
• It's been on market 299 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• 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 1967 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?