314 Railroad St

Rio, WI 53960

$55,000B+

3 bd · 1.0 ba · 924 sqft · Built 1978 · SingleFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,161/mo
• Mortgage (P&I): −$288
• Tax + insurance: −$150
• HOA: −$0
• Vac / Maint / Mgmt: −$244
• Net cashflow: $479/mo
• Annual: $5,752/yr
• Cap rate: 16.75%
• Cash-on-cash: 37.35%
• DSCR: 2.66
• 1% rule: 2.11%
• Cash to close: $15,400

Investor read

• This is a 3-bed/1.0-bath single-family listed at $55k.
• At list price, monthly cash flow is $479 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $55k).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $6k of equity ($380 loan paydown + $6k appreciation (10.0% local appreciation)).
• Location reads 66/100 on livability (#472 in WI) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Rio Community School District (rural): math 35% / reading 35% proficiency, ranked #301 of 426 in WI (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rio Elementary (math 47% / reading 42%, grade F, #372 of 1,041 statewide, top 40%, 170 students, 37% FRL); Rio Middle/High (math 17% / reading 37%, grade F, #260 of 483 statewide, top 58%, 190 students, 36% FRL).
• Watch-outs: property tax is 2.8% of price.
• Market conditions: 9 active listings in the ZIP; 219 units permitted in Columbia County in 2024 (45 in 5+ unit buildings).
• Columbia County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $46k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.