The Oliver Plan

Oconomowoc, WI 53066

$413,600F

3 bd · 2.5 ba · 1,602 sqft · Built — · SingleFamily · Active · 574 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,510/mo
• Mortgage (P&I): −$2,534
• Tax + insurance: −$805
• HOA: −$0
• Vac / Maint / Mgmt: −$527
• Net cashflow: $-1,357/mo
• Annual: $-16,285/yr
• Cap rate: 2.92%
• Cash-on-cash: -12.04%
• DSCR: 0.46
• 1% rule: 0.52%
• Cash to close: $135,310

Investor read

• This is a 3-bed/2.5-bath single-family listed at $414k.
• At list price, monthly cash flow is $-1k ($-16k/yr) — negative.
• To cash-flow at today's rent, offer at most $287k (30.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $251k (39.3% below list).
• It's been on market 574 days — a 12% lower offer ($364k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $251k (39.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 89/100 on livability (#12 in WI, #159 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: commute F.
• Oconomowoc Area School District (suburban): math 56% / reading 49% proficiency, ranked #39 of 342 in WI (top 11%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Market conditions: Rents flat; 303 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 3d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 1,885 units permitted in Waukesha County in 2024 (696 in 5+ unit buildings).
• Cap rate 2.9% vs local median 1.3% in Oconomowoc — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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 574 days. Have you received any prior offers? Is the seller open to a 39% concession, seller financing, or rate buy-down credit?
• 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?
• 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?
• 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.