8830 Nesbit Ave N

Seattle, WA 98103

$1,400,000D

9 bd · 6.0 ba · 5,412 sqft · Built 1995 · MultiFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,923/mo
• Mortgage (P&I): −$7,342
• Tax + insurance: −$1,848
• HOA: −$0
• Vac / Maint / Mgmt: −$2,084
• Net cashflow: $-1,351/mo
• Annual: $-16,210/yr
• Cap rate: 5.14%
• Cash-on-cash: -4.14%
• DSCR: 0.82
• 1% rule: 0.71%
• Cash to close: $392,000

Investor read

• This is a 3 × 2-bed/1-bath units multifamily listed at $1.40M.
• At list price, monthly cash flow is $-1k ($-16k/yr) — negative. Per door: $-450/mo.
• To cash-flow at today's rent, offer at most $1.16M (17.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $992k (29.1% below list).
• It's been on market 76 days — a 6% lower offer ($1.32M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $992k (29.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $42k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#166 in WA, #4,033 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Seattle Public Schools (urban): math 64% / reading 72% proficiency, ranked #19 of 291 in WA (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Hazel Wolf K-8 (720 students, 22% FRL); Robert Eagle Staff Middle School (676 students, 31% FRL); Ingraham High School (1,452 students, 33% FRL) — zoned schools at 29% FRL track the district average.
• Market conditions: Rents rising (+2.2%/yr); 361 active listings in the ZIP; high-income renter base; 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.
• Current owner paid $650k; list at $1.40M implies a 115% gain — meaningful room to come down on a strong offer.
• Cap rate 5.1% vs local median 1.6% in Seattle — 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 $9,923/mo this rent would consume 91% of the median local household income ($131k/yr) (locally 2586% 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 76 days. Have you received any prior offers? Is the seller open to a 29% 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?
• 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 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?