3734 Frostfire Ave

Grand Island, NE 68803

$299,000F

2 bd · 3.0 ba · 1,516 sqft · Built 2007 · Condo · Pending · 208 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,447/mo
• Mortgage (P&I): −$1,568
• Tax + insurance: −$498
• HOA: −$42
• Vac / Maint / Mgmt: −$304
• Net cashflow: $-965/mo
• Annual: $-11,580/yr
• Cap rate: 2.42%
• Cash-on-cash: -13.83%
• DSCR: 0.38
• 1% rule: 0.48%
• Cash to close: $83,720

Investor read

• This is a 2-bed/3.0-bath condo listed at $299k.
• At list price, monthly cash flow is $-965 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $165k (44.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $145k (51.6% below list).
• It's been on market 208 days — a 12% lower offer ($263k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $145k (51.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#43 in NE, #2,252 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, commute F.
• Grand Island Public Schools (urban): math 36% / reading 36% proficiency, ranked #102 of 111 in NE (top 92%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Shoemaker Elementary School (math 50% / reading 53%, grade C-, #230 of 502 statewide, top 46%, 433 students, 51% FRL); Westridge Middle School (math 61% / reading 54%, grade B, #23 of 128 statewide, top 18%, 599 students, 43% FRL); Grand Island Senior High School (math 22% / reading 20%, grade F, #249 of 261 statewide, top 95%, 2,650 students, 65% FRL) — zoned schools at 53% FRL track the district average.
• Market conditions: 213 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 246 units permitted in Hall County in 2024 (98 in 5+ unit buildings).
• Hall County population projected at +27% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $21k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.4% vs local median 3.6% in Grand Island — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 52% 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?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 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?
• 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?