2312 Orleans St

Bellingham, WA 98229

$1,099,000F

1 bd · 1.0 ba · 3,456 sqft · Built 1973 · MultiFamily · Active · 234 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,142/mo
• Mortgage (P&I): −$5,763
• Tax + insurance: −$1,060
• HOA: −$0
• Vac / Maint / Mgmt: −$1,500
• Net cashflow: $-1,181/mo
• Annual: $-14,175/yr
• Cap rate: 5.00%
• Cash-on-cash: -4.61%
• DSCR: 0.80
• 1% rule: 0.65%
• Cash to close: $307,720

Investor read

• This is a 3×2bd/1.0ba + 1×1bd/1.0ba units multifamily listed at $1.10M.
• At list price, monthly cash flow is $-1k ($-14k/yr) — negative. Per door: $-295/mo.
• To cash-flow at today's rent, offer at most $890k (19.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $714k (35.0% below list).
• It's been on market 234 days — a 12% lower offer ($967k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $714k (35.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $33k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#102 in WA, #1,947 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, health & safety A+; Watch: crime F, cost of living F.
• Bellingham School District (urban): math 47% / reading 63% proficiency, ranked #106 of 291 in WA (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents rising (+3.4%/yr); 275 active listings in the ZIP; solid renter incomes; 1,190 units permitted in Whatcom County in 2024 (327 in 5+ unit buildings).
• Whatcom County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 5y 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 $901k; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 5.0% vs local median 2.0% in Bellingham — 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 $7,142/mo this rent would consume 94% of the median local household income ($91k/yr) (locally 1040% 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 234 days. Have you received any prior offers? Is the seller open to a 35% 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 1973 — 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?