321 Bellevue Way SE #403

Bellevue, WA 98004

$468,000D

2 bd · 1.0 ba · 896 sqft · Built 1969 · Condo · Active · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,840/mo
• Mortgage (P&I): −$2,454
• Tax + insurance: −$462
• HOA: −$598
• Vac / Maint / Mgmt: −$596
• Net cashflow: $-1,271/mo
• Annual: $-15,250/yr
• Cap rate: 3.03%
• Cash-on-cash: -11.64%
• DSCR: 0.48
• 1% rule: 0.61%
• Cash to close: $131,040

Investor read

• This is a 2-bed/1.0-bath condo listed at $468k.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $244k (48.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $284k (39.3% below list).
• It's been on market 34 days — a 3% lower offer ($454k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $244k (48.0% below list) — sets the bar for cash-flow.
• In year one you build about $2k of equity ($3k loan paydown + $-2k appreciation (-0.3% local appreciation)).
• Location reads 87/100 on livability (#15 in WA, #314 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living F.
• Bellevue School District (urban): math 73% / reading 79% proficiency, ranked #7 of 291 in WA (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Enatai Elementary School (433 students, 20% FRL); Bellevue High School (1,517 students, 15% FRL) — zoned schools at 17% FRL track the district average.
• Watch-outs: HOA is 21% of rent.
• Market conditions: Rents soft (-0.2%/yr); 350 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); 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.
• 3 sale attempts since 18y 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 $377k; 24% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 10, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.0% vs local median 1.1% in Bellevue — 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.

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 34 days. Have you received any prior offers? Is the seller open to a 48% concession, seller financing, or rate buy-down credit?
• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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?