1818 W 8th Ave

Spokane, WA 99204

$1,050,000D

15 bd · 10.0 ba · 6,904 sqft · Built 1910 · MultiFamily · Pending · 280 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,673/mo
• Mortgage (P&I): −$5,506
• Tax + insurance: −$1,512
• HOA: −$0
• Vac / Maint / Mgmt: −$1,611
• Net cashflow: $-956/mo
• Annual: $-11,476/yr
• Cap rate: 5.20%
• Cash-on-cash: -3.90%
• DSCR: 0.83
• 1% rule: 0.73%
• Cash to close: $294,000

Investor read

• This is a 5 × 3-bed/?-bath units multifamily listed at $1.05M.
• At list price, monthly cash flow is $-956 ($-11k/yr) — negative. Per door: $-191/mo.
• To cash-flow at today's rent, offer at most $881k (16.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $767k (26.9% below list).
• It's been on market 280 days — a 12% lower offer ($924k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $767k (26.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $32k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#93 in WA, #1,822 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: crime F.
• Spokane School District (urban): math 47% / reading 58% proficiency, ranked #136 of 291 in WA (top 47%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Roosevelt Elementary (502 students, 59% FRL); Lewis & Clark High School (1,739 students, 38% FRL) — zoned schools at 49% FRL track the district average.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.4%/yr); 77 active listings in the ZIP; 3,608 units permitted in Spokane County in 2024 (1,792 in 5+ unit buildings).
• Spokane County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 11 sale attempts since 9y ago; this cycle's ask has dropped $415k (28%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $550k; list at $1.05M implies a 91% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.2% vs local median 3.2% in Spokane — 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 $7,673/mo this rent would consume 158% of the median local household income ($58k/yr) (locally 501% 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 280 days. Have you received any prior offers? Is the seller open to a 27% 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?
• Built in 1910 — 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.
• 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?