550 Westcott Dr

Roche Harbor, WA 98250

$2,695,000C-

2 bd · 3.0 ba · 2,442 sqft · Built 2009 · SingleFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $25,000/mo
• Mortgage (P&I): −$14,133
• Tax + insurance: −$2,348
• HOA: −$0
• Vac / Maint / Mgmt: −$5,250
• Net cashflow: $3,270/mo
• Annual: $39,234/yr
• Cap rate: 7.75%
• Cash-on-cash: 5.20%
• DSCR: 1.23
• 1% rule: 0.93%
• Cash to close: $754,600

Investor read

• This is a 2-bed/3.0-bath single-family listed at $2.69M.
• At list price, monthly cash flow is $3k ($39k/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 $2.50M (7.2% below list).
• It's been on market 15 days — a 2% lower offer ($2.65M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.50M (7.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $19k of loan paydown is wiped out by about $81k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• San Juan Island School District (rural): math 61% / reading 67% proficiency, ranked #36 of 291 in WA (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Friday Harbor Elementary School (321 students, 38% FRL); Friday Harbor High School (245 students, 42% FRL).
• Market conditions: 165 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 99 units permitted in San Juan County in 2024 (0 in 5+ unit buildings).
• San Juan County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $350k; list at $2.69M implies a 670% 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 7.7% vs local median 0.5% in Roche Harbor — 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

• 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 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.