Multifamily Property "pick of the week" for
King, Pierce, and Snohomish Counties

In this current real estate market, competition is strong for the good deals. To help our clients, we go the extra mile. Along with hunting for off-market deals, we dig into the properties that are currently listed on the MLS to find those deals that may have been overlooked because of miscalculated numbers, poor photos, below market rents, or just improperly listed. 
 
Keep in mind, my calculations and assumptions are based on market averages and sometimes just educated guesses. If you are interested in any of these properties, let's put in a contingent offer to get it off the market and conduct due diligence. 

Below you will find this week's "pick".

 

1757 S 305th Place, Federal Way | 8-Units, Priced at $795,000
CLICK HERE to view listing on our website

 

Listing shows the current cap rate at 2.5%...

  • Rents are listed as $600 per unit

  • Annual property tax is known to be $9,242

  • Insurance is probably about $1,000/year

  • Utilities are probably around $8,000/year

  • Maintenance, etc around $3,000/year

  • Vacancy rates in the area are averaging around 3% right now

As-Is

  • Gross Annual Rent: $57,600

  • -3% Vacancy

  • -Annual Expense: $19,373

  • =Net Operating Income: $36,135

At $795,000 this would actually be a cap rate of 4.5%

 

Pro Forma:

The median rent for one bedroom units in the area is $1,125. Increasing the rents to $1,000:

  • Gross Annual Rent: $96,000

  • -3% Vacancy

  • -Annual Expense: $19,373

  • =Net Operating Income: $73,747

At $795,000 this would be a cap rate of 9.3%

  • Working in a utility charge-back could bring this even higher. 

 

View our analysis sheet for property as-is.

View our analysis sheet for property at market rents.