9536 S 87th St

Lincoln, NE 68526

$350,000D-

2 bd · 2.0 ba · 1,349 sqft · Built 2026 · SingleFamily · Pending · 208 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,999/mo
• Mortgage (P&I): −$1,835
• Tax + insurance: −$583
• HOA: −$50
• Vac / Maint / Mgmt: −$420
• Net cashflow: $-890/mo
• Annual: $-10,675/yr
• Cap rate: 3.24%
• Cash-on-cash: -10.89%
• DSCR: 0.52
• 1% rule: 0.57%
• Cash to close: $98,000

Investor read

• This is a 2-bed/2.0-bath single-family listed at $350k.
• At list price, monthly cash flow is $-890 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $221k (36.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $200k (42.9% below list).
• It's been on market 208 days — a 12% lower offer ($308k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $200k (42.9% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($2k loan paydown + $10k appreciation (2.8% local appreciation)).
• Location reads 85/100 on livability (#5 in NE, #545 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, housing A+; Watch: crime D+.
• Lincoln Public Schools (urban): math 50% / reading 53% proficiency, ranked #59 of 111 in NE (top 53%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Norris Intermediate School (math 62% / reading 61%, grade B, #106 of 502 statewide, top 21%, 577 students, 10% FRL); Norris Middle School (math 41% / reading 62%, grade C, #48 of 128 statewide, top 38%, 595 students, 12% FRL); Norris High School (math 62% / reading 57%, grade C+, #49 of 261 statewide, top 26%, 757 students, 12% FRL) — zoned schools average 11% FRL vs 37% district-wide (26 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents falling (-3.0%/yr); 147 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 1,940 units permitted in Lancaster County in 2024 (895 in 5+ unit buildings).
• Lancaster County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 3, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 208 days. Have you received any prior offers? Is the seller open to a 43% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?