35390 Brooten Rd

Pacific City, OR 97135

$700,000B-

8 bd · 4.0 ba · 3,784 sqft · Built 2003 · MultiFamily · Active · 71 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,326/mo
• Mortgage (P&I): −$3,671
• Tax + insurance: −$1,593
• HOA: −$0
• Vac / Maint / Mgmt: −$1,748
• Net cashflow: $1,313/mo
• Annual: $15,761/yr
• Cap rate: 9.28%
• Cash-on-cash: 10.65%
• DSCR: 1.47
• 1% rule: 1.19%
• Cash to close: $196,000

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $700k. Condition is rated good.
• At list price, monthly cash flow is $1k ($16k/yr) — positive. Per door: $328/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $700k).
• It's been on market 71 days — a 6% lower offer ($658k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $658k (6.0% below list) — sets the bar for market timing.
• In year one you build about $10k of equity ($5k loan paydown + $5k appreciation (0.7% local appreciation)).
• Location reads 67/100 on livability (#173 in OR) — a middle-class / working-renter tenant base. Strengths: crime A+, employment B, housing B; Watch: commute D+, health & safety D+, schools F.
• Nestucca Valley SD 101J (rural): math 33% / reading 50% proficiency, ranked #101 of 183 in OR (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: 113 active listings in the ZIP; 86 units permitted in Tillamook County in 2024 (0 in 5+ unit buildings).
• Tillamook County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (0.7% appreciation + 3.0% rent growth), your $196k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$48k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.3% vs local median 1.9% in Pacific City — 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

• It's been on market 71 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen countertops — Visible wear on countertops, but not severe enough to require immediate replacement.
• Minor: Bathroom fixtures — Visible wear on some fixtures, but not severe enough to require immediate replacement.
• Minor: Exterior trim — Visible wear on trim, but not severe enough to require immediate replacement.
• Minor: Exterior siding — Visible wear on siding, but not severe enough to require immediate replacement.
• Minor: Exterior paint — Visible wear on paint, but not severe enough to require immediate replacement.
• Minor: Exterior plants — Visible wear on some plants, but not severe enough to require immediate replacement.