Medford · Multifamily · Illustrative file
Bear Creek 8
Eight units, two-bedroom heavy, held by one owner since 2004.
Elevation plate. Placeholder artwork — photography for this file is not published. The brand rules require the whole building, elevation-on, verticals corrected, and a drawing cannot make a claim about condition that a photograph would.
The building
A 1972 garden walk-up on the north side of Medford, eight units in two buildings, one owner since 2004. Rents have moved with the tenant rather than the market, which is the reason the going-in yield reads the way it does and the reason there is a pro forma at all.
The roofs were done in 2019 and the sewer lateral in 2021. What is left is cosmetic and mechanical at the unit level — the work that closes the rent gap, priced below as a cost rather than assumed away.
- Market
- Medford
- Asset type
- Multifamily
- Units
- 8
- Built
- 1972
- Rentable area
- 5,720 sq ft
- Price per unit
- $110,000
Headline, in place
| Net operating income | NOI | Cap | DSCR | Cash-on-cash |
|---|---|---|---|---|
| -10% | $51,412 | 5.84% | 1.17x | 1.99% |
| -5% | $54,268 | 6.17% | 1.24x | 2.73% |
| In place | $57,125 | 6.49% | 1.30x | 3.47% |
| +5% | $59,981 | 6.82% | 1.37x | 4.21% |
| +10% | $62,837 | 7.14% | 1.44x | 4.96% |
The loan constant of 8.29% sits above the going-in cap rate of 6.49%, so leverage here is negative: each additional dollar of debt lowers both the cash-on-cash return and the coverage ratio.
At a 1.25x coverage floor this building supports a loan of about $551,201 — 63% of the asking price.
Rent roll
In-place rents are what the rent roll says. Market rents are an estimate and are labelled as such wherever they are used.
| Unit | Mix | Sq ft | In place | Market (pro forma) |
|---|---|---|---|---|
| Unit 1 | 1 bd / 1 ba | 620 | $1,150/mo | $1,325/mo |
| Unit 2 | 1 bd / 1 ba | 620 | $1,150/mo | $1,325/mo |
| Unit 3 | 1 bd / 1 ba | 620 | $1,150/mo | $1,325/mo |
| Unit 4 | 1 bd / 1 ba | 620 | $1,150/mo | $1,325/mo |
| Unit 5 | 2 bd / 1 ba | 810 | $1,420/mo | $1,575/mo |
| Unit 6 | 2 bd / 1 ba | 810 | $1,420/mo | $1,575/mo |
| Unit 7 | 2 bd / 1 ba | 810 | $1,420/mo | $1,575/mo |
| Unit 8 | 2 bd / 1 ba | 810 | $1,420/mo | $1,575/mo |
| Total | 8 units | 5,720 | $10,280/mo | $11,600/mo |
Trailing twelve to net operating income
Operating expenses as reported, with management restated. Capital reserves and debt service sit below net operating income, not inside it — that is the definition this site publishes.
| Line | Annual | Note |
|---|---|---|
| Gross potential income | $123,360 | 8 units at in-place rent, twelve months |
| Vacancy and credit loss | ($6,168) | 5.0% of gross potential income |
| Other income | $2,400 | Coin laundry and four rented parking spaces. |
| Effective gross income | $119,592 | The money that arrives |
| Operating expenses | ||
| Property taxes | ($14,800) | |
| Insurance | ($6,900) | |
| Water and sewer | ($8,400) | |
| Refuse | ($3,100) | |
| Common-area electric | ($2,600) | |
| Repairs and maintenance | ($9,800) | |
| Turnover | ($3,400) | |
| Landscaping and snow | ($2,400) | |
| Administrative and legal | ($1,500) | |
| Management | ($9,567) | Restated to 8.0% of effective gross income |
| Total operating expenses | ($62,467) | 52.2% of effective gross income |
| Net operating income, in place | $57,125 | Definition |
| Below the line | ||
| Capital reserves | ($2,400) | $300 per unit per year. Not netted into the cap rate. |
| Annual debt service | ($43,776) | 60% loan to value, 6.75%, 25-year amortisation. Indicative, not a quote. |
| Cash flow after debt service and reserves | $10,948 |
Pro forma
Market rents across the rent roll are 12.8% above in place. Stated as a pro forma, separately, with the cost of getting there carried as cash rather than netted out of the yield.
Eight unit turns at $9,500 each, run over roughly eighteen months as leases expire. The cost is carried in the cash position below, not netted out of the yield.
Assumptions
- In-place rents are taken from the July 2026 rent roll, not from asking rents.
- Operating expenses are the trailing twelve months as reported by the seller, with management restated to 8% of effective gross income.
- Vacancy and credit loss at 5% of gross potential income. The building has run tighter than that; we do not underwrite to the tight year.
- Capital reserves of $300 per unit per year sit below net operating income and are not netted into the cap rate.
- Debt shown is indicative, not a quote: 60% loan to value, 6.75%, 25-year amortisation.
Go or no-go
Go
It debt-services in place and the rent gap is real, costed, and does not need a rent assumption to clear the loan.
Cash position at close
- Price
- $880,000
- Loan
- $528,000
- Closing costs
- $17,600
- Day-one capital
- $15,000
- Total cash in
- $384,600
Contact
Contact Ryan McMillan
Send us the building. You get a written analysis whether or not you transact, and whether or not you transact with us.
Ryan McMillan, Broker, OR #201262100. Brokered by eXp Realty. The first substantive conversation about a specific property is a licensed act and belongs to the broker.