125 Lake Ave Ave N

Crandon, WI 54520

$274,900B-

4 bd · 6.0 ba · 6,384 sqft · Built — · MultiFamily · Active Under Contract · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,184/mo
• Mortgage (P&I): −$1,442
• Tax + insurance: −$458
• HOA: −$0
• Vac / Maint / Mgmt: −$879
• Net cashflow: $1,406/mo
• Annual: $16,867/yr
• Cap rate: 12.43%
• Cash-on-cash: 21.91%
• DSCR: 1.98
• 1% rule: 1.52%
• Cash to close: $76,972

Investor read

• This is a 4-bed/6.0-bath multifamily listed at $275k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($17k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $275k).
• It's been on market 24 days — a 2% lower offer ($271k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $271k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#704 in WI) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A-; Watch: employment C-, health & safety D, schools F.
• Crandon School District (rural): math 26% / reading 28% proficiency, ranked #307 of 342 in WI (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 56 active listings in the ZIP; 69 units permitted in Forest County in 2024 (0 in 5+ unit buildings).
• Forest County population projected at -28% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $77k cash investment doubles in ~6 years — after that, you're playing with house money.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Major: kitchen cabinets — severely outdated and in poor condition
• Major: bathroom fixtures — outdated and in poor condition
• Major: flooring — dated and worn linoleum and carpet
• Moderate: paint — chipped paint in some areas