18485 SW Pacific Dr #37

Tualatin, OR 97062

$85,000C+

3 bd · 2.0 ba · 1,296 sqft · Built 1990 · Manufactured · Pending · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,127/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$96
• HOA: −$925
• Vac / Maint / Mgmt: −$447
• Net cashflow: $214/mo
• Annual: $2,564/yr
• Cap rate: 9.31%
• Cash-on-cash: 10.77%
• DSCR: 1.48
• 1% rule: 2.50%
• Cash to close: $23,800

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $85k.
• At list price, monthly cash flow is $214 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $85k).
• It's been on market 35 days — a 3% lower offer ($82k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $82k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $588 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#16 in OR, #355 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+; Watch: cost of living F.
• Sherwood SD 88J (suburban): math 56% / reading 66% proficiency, ranked #5 of 58 in OR (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Hawks View Elementary School (math 64% / reading 44%, grade C, #79 of 412 statewide, top 21%, 469 students, 22% FRL); Sherwood Middle School (math 54% / reading 67%, grade B+, #15 of 128 statewide, top 11%, 1,135 students, 12% FRL); Sherwood High School (math 75% / reading 75%, grade A-, #2 of 143 statewide, top 6%, 1,704 students, 11% FRL) — zoned schools at 15% FRL track the district average.
• Watch-outs: HOA is 43% of rent.
• Market conditions: Rents falling (-3.0%/yr); 144 active listings in the ZIP; 15 comparable units currently listed for rent nearby; rentals leasing fast (median 12d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 2,224 units permitted in Washington County in 2024 (242 in 5+ unit buildings).
• Washington County population projected at +33% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $34k; list at $85k implies a 154% gain — meaningful room to come down on a strong offer.
• Cap rate 9.3% vs local median 2.6% in Tualatin — 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

• It's been on market 35 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.