1050 Montague Ave

Darrington, WA 98241

$347,995D

2 bd · 1.0 ba · 1,656 sqft · Built 1935 · SingleFamily · Pending · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,019/mo
• Mortgage (P&I): −$1,825
• Tax + insurance: −$580
• HOA: −$0
• Vac / Maint / Mgmt: −$424
• Net cashflow: $-810/mo
• Annual: $-9,716/yr
• Cap rate: 3.50%
• Cash-on-cash: -9.97%
• DSCR: 0.56
• 1% rule: 0.58%
• Cash to close: $97,439

Investor read

• This is a 2-bed/1.0-bath single-family listed at $348k.
• At list price, monthly cash flow is $-810 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $231k (33.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $202k (42.0% below list).
• It's been on market 15 days — a 2% lower offer ($343k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $202k (42.0% below list) — sets the bar for 1% rule.
• In year one you build about $37k of equity ($2k loan paydown + $35k appreciation (10.0% local appreciation)).
• Location reads 66/100 on livability (#326 in WA) — a middle-class / working-renter tenant base. Strengths: health & safety A+, crime A-, cost of living B; Watch: amenities F, commute F, employment F.
• Darrington School District (rural): math 44% / reading 54% proficiency, ranked #155 of 291 in WA (top 53%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Darrington Elementary School (326 students, 64% FRL); Darrington High School (120 students, 48% FRL).
• Watch-outs: built in 1935 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 14 active listings in the ZIP; 3,982 units permitted in Snohomish County in 2024 (1,492 in 5+ unit buildings).
• Snohomish County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $48k; list at $348k implies a 625% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$60k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Built in 1935 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.