1006 Mountain View Rd

Sweet Home, OR 97386

$374,000D-

3 bd · 2.0 ba · 3,386 sqft · Built 1960 · SingleFamily · Active · 78 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,406/mo
• Mortgage (P&I): −$1,961
• Tax + insurance: −$455
• HOA: −$0
• Vac / Maint / Mgmt: −$505
• Net cashflow: $-516/mo
• Annual: $-6,189/yr
• Cap rate: 4.64%
• Cash-on-cash: -5.91%
• DSCR: 0.74
• 1% rule: 0.64%
• Cash to close: $104,720

Investor read

• This is a 3-bed/2.0-bath single-family listed at $374k.
• At list price, monthly cash flow is $-516 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $283k (24.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $241k (35.7% below list).
• It's been on market 78 days — a 6% lower offer ($352k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $241k (35.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#233 in OR) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, schools D-, amenities F.
• Sweet Home SD 55 (town): math 26% / reading 42% proficiency, ranked #29 of 58 in OR (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 166 active listings in the ZIP; 311 units permitted in Linn County in 2024 (60 in 5+ unit buildings).
• Linn County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 8 sale attempts since 20y ago; this cycle's ask has dropped $121k (24%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $144k; list at $374k implies a 160% 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 4.6% vs local median 2.9% in Sweet Home — 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

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 78 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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.
• 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?
• 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.