175 NE Fern Ct

Dallas, OR 97338

$1,095,000F

60 bd · 48.0 ba · 4,448 sqft · Built 1972 · MultiFamily · Active · 649 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,867/mo
• Mortgage (P&I): −$5,742
• Tax + insurance: −$1,825
• HOA: −$0
• Vac / Maint / Mgmt: −$1,652
• Net cashflow: $-1,352/mo
• Annual: $-16,228/yr
• Cap rate: 4.81%
• Cash-on-cash: -5.29%
• DSCR: 0.76
• 1% rule: 0.72%
• Cash to close: $306,600

Investor read

• This is a 4×2bd/1.5ba + 2×1bd/1ba units multifamily listed at $1.09M. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-16k/yr) — negative. Per door: $-225/mo.
• To cash-flow at today's rent, offer at most $899k (17.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $787k (28.2% below list).
• It's been on market 649 days — a 12% lower offer ($964k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $787k (28.2% 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 79/100 on livability (#61 in OR, #2,132 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, commute A; Watch: amenities F.
• Dallas SD 2 (town): math 32% / reading 48% proficiency, ranked #102 of 183 in OR (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lyle Elementary School (326 students, 72% FRL); Lacreole Middle School (586 students, 41% FRL); Dallas High School (836 students, 27% FRL).
• Market conditions: 219 active listings in the ZIP; solid renter incomes; 177 units permitted in Polk County in 2024 (14 in 5+ unit buildings).
• Polk County population projected at +25% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 17y ago; this cycle's ask has dropped $155k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $215k; list at $1.09M implies a 409% 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 4.8% vs local median 2.4% in Dallas — 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 $7,867/mo this rent would consume 120% of the median local household income ($79k/yr) (locally 782% 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 649 days. Have you received any prior offers? Is the seller open to a 28% 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?