8524 Ridge Hollow Dr

Lincoln, NE 68526

$290,000D

2 bd · 4.0 ba · 1,950 sqft · Built 2011 · Townhouse · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,088/mo
• Mortgage (P&I): −$1,521
• Tax + insurance: −$479
• HOA: −$175
• Vac / Maint / Mgmt: −$439
• Net cashflow: $-525/mo
• Annual: $-6,304/yr
• Cap rate: 4.12%
• Cash-on-cash: -7.76%
• DSCR: 0.65
• 1% rule: 0.72%
• Cash to close: $81,200

Investor read

• This is a 2-bed/4.0-bath townhouse listed at $290k.
• At list price, monthly cash flow is $-525 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $197k (32.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $209k (28.0% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $197k (32.0% below list) — sets the bar for cash-flow.
• In year one you build about $10k of equity ($2k loan paydown + $8k 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: Maxey Elementary School (math 69% / reading 70%, grade A-, #39 of 502 statewide, top 11%, 688 students, 19% FRL); Moore Middle School (math 78% / reading 69%, grade A, #4 of 128 statewide, top 2%, 738 students, 10% FRL); Lincoln Southeast High School (math 51% / reading 52%, grade D+, #105 of 261 statewide, top 40%, 1,929 students, 16% FRL) — zoned schools average 15% FRL vs 37% district-wide (22 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 65% at this address vs 52% district-wide (+13 pts) — the actual schools serving this property are materially stronger than the Lincoln Public Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents falling (-3.0%/yr); 147 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 2 sale attempts since 15y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $147k; list at $290k implies a 97% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.1% vs local median 3.0% in Lincoln — 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.