1570 James St

Woodburn, OR 97071

$4,850,000D

48 bd · 60.0 ba · 23,640 sqft · Built 1970 · MultiFamily · Active · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $39,868/mo
• Mortgage (P&I): −$25,434
• Tax + insurance: −$4,365
• HOA: −$0
• Vac / Maint / Mgmt: −$8,372
• Net cashflow: $1,697/mo
• Annual: $20,367/yr
• Cap rate: 6.71%
• Cash-on-cash: 1.50%
• DSCR: 1.07
• 1% rule: 0.82%
• Cash to close: $1,358,000

Investor read

• This is a 24 × 2-bed/1.5-bath units multifamily listed at $4.85M.
• At list price, monthly cash flow is $2k ($20k/yr) — positive. Per door: $71/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $3.99M (17.8% below list).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $3.99M (17.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $34k of loan paydown is wiped out by about $146k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#91 in OR, #4,490 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, cost of living B; Watch: crime D+, commute D, amenities F.
• Woodburn SD 103 (town): math 20% / reading 31% proficiency, ranked #169 of 183 in OR (top 92%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Washington Elementary School (438 students, 50% FRL); French Prairie Middle School (587 students, 72% FRL); Woodburn Success (79 students, 68% FRL).
• Market conditions: Rents rising (+2.9%/yr); 306 active listings in the ZIP; 1,591 units permitted in Marion County in 2024 (716 in 5+ unit buildings).
• Marion County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 sale attempts since 3y 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.
• Cap rate 6.7% vs local median 3.1% in Woodburn — 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 $39,868/mo this rent would consume 674% of the median local household income ($71k/yr) (locally 1039% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.