818 D St

Vader, WA 98593

$119,900C-

2 bd · 1.0 ba · 924 sqft · Built 1977 · Other · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,040/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$113
• HOA: −$0
• Vac / Maint / Mgmt: −$218
• Net cashflow: $80/mo
• Annual: $954/yr
• Cap rate: 7.09%
• Cash-on-cash: 2.84%
• DSCR: 1.13
• 1% rule: 0.87%
• Cash to close: $33,572

Investor read

• This is a 2-bed/1.0-bath other listed at $120k.
• At list price, monthly cash flow is $80 ($954/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $104k (13.3% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $104k (13.3% below list) — sets the bar for 1% rule.
• In year one you build about $2k of equity ($829 loan paydown + $1k appreciation (1.1% local appreciation)).
• Location reads 61/100 on livability (#445 in WA) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living A; Watch: health & safety C-, crime F, amenities F.
• Castle Rock School District (town): math 36% / reading 56% proficiency, ranked #174 of 291 in WA (top 60%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Castle Rock High School (449 students, 52% FRL).
• Market conditions: 32 active listings in the ZIP; 265 units permitted in Lewis County in 2024 (44 in 5+ unit buildings).
• Lewis County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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.
• Current owner paid $40k; list at $120k implies a 200% gain — meaningful room to come down on a strong offer.
• At projected returns (1.1% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 7.1% vs local median 1.6% in Vader — 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

• Built in 1977 — 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 F-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 F 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?
• 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.