7996 N Tongass Hwy

Ketchikan, AK 99901

$775,000D

3 bd · 2.0 ba · 2,452 sqft · Built 1975 · MultiFamily · Active · 136 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,136/mo
• Mortgage (P&I): −$4,064
• Tax + insurance: −$540
• HOA: −$0
• Vac / Maint / Mgmt: −$1,289
• Net cashflow: $244/mo
• Annual: $2,923/yr
• Cap rate: 6.67%
• Cash-on-cash: 1.35%
• DSCR: 1.06
• 1% rule: 0.79%
• Cash to close: $217,000

Investor read

• This is a 3-bed/2.0-bath multifamily listed at $775k.
• At list price, monthly cash flow is $244 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $614k (20.8% below list).
• It's been on market 136 days — a 12% lower offer ($682k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $614k (20.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $23k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#12 in AK, #3,743 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, health & safety A+; Watch: crime D+, amenities F.
• Ketchikan Gateway Borough School District (town): math 39% / reading 44% proficiency, ranked #7 of 21 in AK (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Houghtaling Elementary (math 37% / reading 42%, grade F, #75 of 156 statewide, top 52%, 310 students, 59% FRL); Schoenbar Middle School (math 30% / reading 36%, grade F, #26 of 36 statewide, top 71%, 269 students, 40% FRL); Ketchikan High School (math 42% / reading 42%, grade F, #17 of 61 statewide, top 32%, 498 students, 28% FRL).
• Market conditions: 100 active listings in the ZIP; 73 units permitted in Ketchikan Gateway Borough in 2024 (14 in 5+ unit buildings).
• Ketchikan Gateway County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 6y ago; this cycle's ask has dropped $54k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 6.7% vs local median 3.7% in Ketchikan — 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

• It's been on market 136 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• Built in 1975 — 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 D 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?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.