Ashland · Multifamily · Illustrative file
Siskiyou Fourplex
Four units near the campus. Durable rent, a yield that does not carry debt.
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 well-kept fourplex within walking distance of the campus, the kind of Ashland building that stays leased through a soft year. The rent is durable and close to market already, which means there is very little underwriting upside to find.
We carry this file because the answer is instructive. At the asking price it does not cover debt service at today's rates, and no reasonable rent assumption fixes that.
- Market
- Ashland
- Asset type
- Multifamily
- Units
- 4
- Built
- 1978
- Rentable area
- 3,100 sq ft
- Price per unit
- $198,750
Headline, in place
| Net operating income | NOI | Cap | DSCR | Cash-on-cash |
|---|---|---|---|---|
| -10% | $30,058 | 3.78% | 0.76x | -2.84% |
| -5% | $31,728 | 3.99% | 0.80x | -2.34% |
| In place | $33,398 | 4.20% | 0.84x | -1.84% |
| +5% | $35,068 | 4.41% | 0.89x | -1.34% |
| +10% | $36,738 | 4.62% | 0.93x | -0.84% |
The loan constant of 8.29% sits above the going-in cap rate of 4.20%, 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 $322,261 — 41% 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 A | 2 bd / 1 ba | 900 | $1,695/mo | $1,850/mo |
| Unit B | 2 bd / 1 ba | 900 | $1,695/mo | $1,850/mo |
| Unit C | 1 bd / 1 ba | 650 | $1,395/mo | $1,525/mo |
| Unit D | 1 bd / 1 ba | 650 | $1,395/mo | $1,525/mo |
| Total | 4 units | 3,100 | $6,180/mo | $6,750/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 | $74,160 | 4 units at in-place rent, twelve months |
| Vacancy and credit loss | ($2,966) | 4.0% of gross potential income |
| Effective gross income | $71,194 | The money that arrives |
| Operating expenses | ||
| Property taxes | ($11,200) | |
| Insurance | ($4,400) | |
| Water and sewer | ($4,900) | |
| Refuse | ($1,900) | |
| Repairs and maintenance | ($5,200) | |
| Turnover | ($1,800) | |
| Landscaping | ($1,800) | |
| Administrative and legal | ($900) | |
| Management | ($5,695) | Restated to 8.0% of effective gross income |
| Total operating expenses | ($37,795) | 53.1% of effective gross income |
| Net operating income, in place | $33,398 | Definition |
| Below the line | ||
| Capital reserves | ($1,200) | $300 per unit per year. Not netted into the cap rate. |
| Annual debt service | ($39,548) | 60% loan to value, 6.75%, 25-year amortisation. Indicative, not a quote. |
| Cash flow after debt service and reserves | $-7,350 |
Pro forma
Market rents across the rent roll are 9.2% 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.
Market rents are within roughly nine percent of in-place. No turn budget is carried because there is no meaningful gap to buy.
Assumptions
- In-place rents are taken from the July 2026 rent roll.
- Operating expenses are the trailing twelve months, management restated to 8% of effective gross income.
- Vacancy and credit loss at 4% of gross potential income.
- Capital reserves of $300 per unit per year sit below net operating income.
- Debt shown is indicative, not a quote: 60% loan to value, 6.75%, 25-year amortisation.
Go or no-go
No-go
Debt coverage is below 1.00 at the asking price. This is a cash buyer's building or a lower number, and we would tell a seller the same thing.
Cash position at close
- Price
- $795,000
- Loan
- $477,000
- Closing costs
- $15,900
- Day-one capital
- $0
- Total cash in
- $333,900
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.