1012 W 53rd Ave

Anchorage, AK 99518

$865,000D

12 bd · 4.0 ba · 4,320 sqft · Built 1970 · MultiFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,361/mo
• Mortgage (P&I): −$4,536
• Tax + insurance: −$992
• HOA: −$0
• Vac / Maint / Mgmt: −$1,336
• Net cashflow: $-503/mo
• Annual: $-6,041/yr
• Cap rate: 5.59%
• Cash-on-cash: -2.49%
• DSCR: 0.89
• 1% rule: 0.74%
• Cash to close: $242,200

Investor read

• This is a 4 × 1-bed/1-bath units multifamily listed at $865k.
• At list price, monthly cash flow is $-503 ($-6k/yr) — negative. Per door: $-126/mo.
• To cash-flow at today's rent, offer at most $776k (10.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $636k (26.5% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $636k (26.5% below list) — sets the bar for 1% rule.
• In year one you build about $60k of equity ($6k loan paydown + $54k appreciation (6.2% local appreciation)).
• Location reads 78/100 on livability (#6 in AK, #2,553 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, employment A+; Watch: crime F, cost of living F.
• Anchorage School District (urban): math 37% / reading 43% proficiency, ranked #6 of 21 in AK (top 29%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Campbell Stem Elementary (math 32% / reading 32%, grade F, #104 of 156 statewide, top 70%, 415 students, 47% FRL); Romig Middle School (math 24% / reading 44%, grade F, #22 of 36 statewide, top 63%, 720 students, 37% FRL) — zoned schools at 42% FRL track the district average.
• Market conditions: 49 active listings in the ZIP; solid renter incomes; 306 units permitted in Anchorage Municipality in 2024 (90 in 5+ unit buildings).
• Anchorage County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 26y 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.
• By year 2, paydown + projected appreciation supports a ~$95k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.6% vs local median 3.8% in Anchorage — 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 $6,361/mo this rent would consume 81% of the median local household income ($94k/yr) (locally 385% 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?
• 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 1970 — 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 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?
• 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?
• 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?