516 W 2nd St

Wakefield, NE 68784

$140,000D+

2 bd · 2.0 ba · 2,010 sqft · Built 1952 · SingleFamily · Pending · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,056/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$202
• HOA: −$0
• Vac / Maint / Mgmt: −$222
• Net cashflow: $-101/mo
• Annual: $-1,217/yr
• Cap rate: 5.42%
• Cash-on-cash: -3.11%
• DSCR: 0.86
• 1% rule: 0.75%
• Cash to close: $39,200

Investor read

• This is a 2-bed/2.0-bath single-family listed at $140k.
• At list price, monthly cash flow is $-101 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $122k (12.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $106k (24.6% below list).
• It's been on market 27 days — a 2% lower offer ($138k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (24.6% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($968 loan paydown + $6k appreciation (4.0% local appreciation)).
• Location reads 78/100 on livability (#52 in NE, #2,540 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Wakefield Public Schools (rural): math 34% / reading 44% proficiency, ranked #99 of 111 in NE (top 89%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Wakefield Elementary School (math 27% / reading 47%, grade F, #373 of 502 statewide, top 77%, 342 students, 61% FRL); Wakefield High School (math 47% / reading 42%, grade F, #146 of 261 statewide, top 67%, 225 students, 60% FRL) — zoned schools average 60% FRL vs 41% district-wide (19 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 7 active listings in the ZIP; 4 units permitted in Dixon County in 2024 (0 in 5+ unit buildings).
• Dixon County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $89k; list at $140k implies a 57% gain — meaningful room to come down on a strong offer.
• 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

• 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?
• Built in 1952 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.