1110/1120 Meadow Ave

Tillamook, OR 97141

$1,250,000F

8 bd · 4.0 ba · 3,776 sqft · Built 1972 · MultiFamily · Active · 256 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,464/mo
• Mortgage (P&I): −$6,555
• Tax + insurance: −$975
• HOA: −$0
• Vac / Maint / Mgmt: −$1,567
• Net cashflow: $-1,633/mo
• Annual: $-19,598/yr
• Cap rate: 4.73%
• Cash-on-cash: -5.60%
• DSCR: 0.75
• 1% rule: 0.60%
• Cash to close: $350,000

Investor read

• This is a 6 × 1-bed/?-bath units multifamily listed at $1.25M.
• At list price, monthly cash flow is $-2k ($-20k/yr) — negative. Per door: $-272/mo.
• To cash-flow at today's rent, offer at most $961k (23.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $746k (40.3% below list).
• It's been on market 256 days — a 12% lower offer ($1.10M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $746k (40.3% 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 $38k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#73 in OR, #3,288 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, health & safety A+; Watch: employment C-, crime D, amenities F.
• Tillamook SD 9 (town): math 21% / reading 39% proficiency, ranked #44 of 58 in OR (top 76%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Liberty Elementary School (276 students, 77% FRL); East Elementary School (math 27% / reading 37%, grade F, #78 of 128 statewide, top 63%, 470 students, 66% FRL); Tillamook High School (math 15% / reading 47%, grade F, #106 of 143 statewide, top 74%, 723 students, 34% FRL).
• Market conditions: 163 active listings in the ZIP; 86 units permitted in Tillamook County in 2024 (0 in 5+ unit buildings).
• Tillamook County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts 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.
• Cap rate 4.7% vs local median 3.2% in Tillamook — 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 256 days. Have you received any prior offers? Is the seller open to a 40% 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 1972 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?