224204 E Main St

Finley, WA 99337

$525,000C-

3 bd · 3.0 ba · 3,064 sqft · Built 1940 · MultiFamily · Active · 81 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,189/mo
• Mortgage (P&I): −$2,753
• Tax + insurance: −$569
• HOA: −$0
• Vac / Maint / Mgmt: −$1,090
• Net cashflow: $777/mo
• Annual: $9,326/yr
• Cap rate: 8.22%
• Cash-on-cash: 6.89%
• DSCR: 1.31
• 1% rule: 0.99%
• Cash to close: $147,000

Investor read

• This is a 3-bed/3.0-bath multifamily listed at $525k.
• At list price, monthly cash flow is $777 ($9k/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 $519k (1.2% below list).
• It's been on market 81 days — a 6% lower offer ($494k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $494k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#502 in WA) — a working-class tenant base; expect higher turnover. Strengths: housing A+, employment B, cost of living B; Watch: crime D+, schools F, amenities F.
• Finley School District (suburban): math 19% / reading 39% proficiency, ranked #265 of 291 in WA (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: flood insurance adds $66/mo; built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 249 active listings in the ZIP; solid renter incomes; 1,532 units permitted in Benton County in 2024 (389 in 5+ unit buildings).
• Benton County population projected at +32% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 21y 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.
• Current owner paid $142k; list at $525k implies a 270% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: severe flood risk; moderate wildfire risk; extreme-heat days projected 7→15/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.2% vs local median 2.8% in Finley — 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 $5,189/mo this rent would consume 63% of the median local household income ($99k/yr) (locally 430% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 81 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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 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?
• 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.