138 Teakwood St

Pocatello, ID 83204

$12,000D+

2 bd · 1.0 ba · 784 sqft · Built 1983 · Other · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $973/mo
• Mortgage (P&I): −$63
• Tax + insurance: −$33
• HOA: −$0
• Vac / Maint / Mgmt: −$204
• Net cashflow: $673/mo
• Annual: $8,072/yr
• Cap rate: 73.56%
• Cash-on-cash: 240.25%
• DSCR: 11.69
• 1% rule: 8.11%
• Cash to close: $3,360

Investor read

• This is a 2-bed/1.0-bath other listed at $12k.
• At list price, monthly cash flow is $673 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($973 rent vs $12k).
• It's been on market 15 days — a 2% lower offer ($12k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $12k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $83 of loan paydown is wiped out by about $360 of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#7 in ID, #758 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: amenities C-, employment D.
• Pocatello District (urban): math 45% / reading 58% proficiency, ranked #26 of 92 in ID (top 28%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Jefferson Elementary School (math 32% / reading 42%, grade F, #255 of 357 statewide, top 74%, 343 students, 66% FRL); Irving Middle School (math 33% / reading 54%, grade D, #60 of 109 statewide, top 56%, 712 students, 39% FRL); Pocatello High School (math 45% / reading 65%, grade C, #25 of 169 statewide, top 14%, 1,352 students, 28% FRL) — zoned schools at 44% FRL track the district average.
• Watch-outs: property tax is 2.8% of price.
• Market conditions: Rents rising fast (+4.0%/yr); 186 active listings in the ZIP; 325 units permitted in Bannock County in 2024 (6 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 4.0% rent growth), your $3k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: severe wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.