407 1st Ave

Ritzville, WA 99169

$479,000B

None bd · 1.0 ba · 4,004 sqft · Built 1950 · MultiFamily · Active · 185 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,500/mo
• Mortgage (P&I): −$2,512
• Tax + insurance: −$798
• HOA: −$0
• Vac / Maint / Mgmt: −$1,785
• Net cashflow: $3,405/mo
• Annual: $40,857/yr
• Cap rate: 14.82%
• Cash-on-cash: 30.46%
• DSCR: 2.36
• 1% rule: 1.77%
• Cash to close: $134,120

Investor read

• This is a ?-bed/1.0-bath multifamily listed at $479k. Condition is rated good.
• At list price, monthly cash flow is $3k ($41k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $479k).
• It's been on market 185 days — a 12% lower offer ($422k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $422k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#173 in WA, #4,438 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, amenities F, commute F.
• Ritzville School District (rural): math 50% / reading 55% proficiency, ranked #134 of 291 in WA (top 46%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Ritzville Grade School (154 students, 52% FRL); Lind Ritzville Middle School (94 students, 52% FRL); Ritzville High School (114 students, 40% FRL).
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 33 active listings in the ZIP; 49 units permitted in Adams County in 2024 (0 in 5+ unit buildings).
• Adams County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $134k cash investment doubles in ~4 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 185 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1950 — 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.