24842 96th Ave S

Kent, WA 98030

$635,000D-

4 bd · 4.0 ba · 2,240 sqft · Built 1974 · MultiFamily · Pending · 87 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,947/mo
• Mortgage (P&I): −$3,330
• Tax + insurance: −$819
• HOA: −$0
• Vac / Maint / Mgmt: −$829
• Net cashflow: $-1,031/mo
• Annual: $-12,371/yr
• Cap rate: 4.34%
• Cash-on-cash: -6.96%
• DSCR: 0.69
• 1% rule: 0.62%
• Cash to close: $177,800

Investor read

• This is a 2 × 2-bed/2.0-bath units multifamily listed at $635k.
• At list price, monthly cash flow is $-1k ($-12k/yr) — negative. Per door: $-515/mo.
• To cash-flow at today's rent, offer at most $453k (28.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $395k (37.8% below list).
• It's been on market 87 days — a 6% lower offer ($597k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $395k (37.8% 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 $19k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#109 in WA, #2,154 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A+; Watch: schools C-, crime F, cost of living F.
• Kent School District (urban): math 47% / reading 57% proficiency, ranked #109 of 291 in WA (top 38%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents rising (+3.7%/yr); 171 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 42% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 10,555 units permitted in King County in 2024 (7,119 in 5+ unit buildings).
• King County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 23y ago; this cycle's ask has dropped $34k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $262k; list at $635k implies a 142% gain — meaningful room to come down on a strong offer.
• Cap rate 4.3% vs local median 2.7% in Kent — 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 $3,947/mo this rent would consume 52% of the median local household income ($92k/yr) (locally 1415% 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 87 days. Have you received any prior offers? Is the seller open to a 38% 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 1974 — 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.
• 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?