2109 W Raye St

Seattle, WA 98199

$1,300,000D

9 bd · 7.0 ba · 2,675 sqft · Built 1955 · MultiFamily · Active · 51 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,140/mo
• Mortgage (P&I): −$6,817
• Tax + insurance: −$2,053
• HOA: −$0
• Vac / Maint / Mgmt: −$2,129
• Net cashflow: $-859/mo
• Annual: $-10,311/yr
• Cap rate: 5.50%
• Cash-on-cash: -2.83%
• DSCR: 0.87
• 1% rule: 0.78%
• Cash to close: $364,000

Investor read

• This is a 7 × 1-bed/7.0-bath units multifamily listed at $1.30M. Condition is rated fair.
• At list price, monthly cash flow is $-859 ($-10k/yr) — negative. Per door: $-123/mo.
• To cash-flow at today's rent, offer at most $1.15M (11.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.01M (22.0% below list).
• It's been on market 51 days — a 3% lower offer ($1.26M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.01M (22.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $9k of loan paydown is wiped out by about $39k 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: Magnolia Elementary School (319 students, 12% FRL); Mcclure Middle School (429 students, 19% FRL); Ballard High School (1,590 students, 12% FRL) — zoned schools average 14% FRL vs 30% district-wide (16 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.3%/yr); 260 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• Cap rate 5.5% vs local median 1.7% 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.
• This rent per unit is only 10% of the median local income ($181k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 51 days. Have you received any prior offers? Is the seller open to a 22% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1955 — 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 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?

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition, with visible wear and tear.
• Moderate: exterior siding — The exterior siding and paint show signs of wear and discoloration.
• Major: flooring — The flooring in the interior appears to be carpeted and in poor condition.
• Moderate: interior walls — The interior walls appear to be in fair condition, with some discoloration visible.
• Moderate: HVAC and mechanical systems — The HVAC and mechanical systems appear to be in fair condition, but further inspection is needed.