201 9th St

Madison, NE 68748

$169,500D

4 bd · 1.0 ba · 1,600 sqft · Built 1906 · SingleFamily · Active · 147 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,295/mo
• Mortgage (P&I): −$889
• Tax + insurance: −$175
• HOA: −$0
• Vac / Maint / Mgmt: −$272
• Net cashflow: $-41/mo
• Annual: $-497/yr
• Cap rate: 6.00%
• Cash-on-cash: -1.05%
• DSCR: 0.95
• 1% rule: 0.76%
• Cash to close: $47,460

Investor read

• This is a 4-bed/1.0-bath single-family listed at $170k.
• At list price, monthly cash flow is $-41 ($-497/yr) — negative.
• To cash-flow at today's rent, offer at most $162k (4.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $129k (23.6% below list).
• It's been on market 147 days — a 12% lower offer ($149k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $129k (23.6% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($1k loan paydown + $7k appreciation (3.9% local appreciation)).
• Location reads 71/100 on livability (#193 in NE) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment C-, amenities F, commute F.
• Madison Public Schools (rural): math 22% / reading 27% proficiency, ranked #109 of 111 in NE (top 98%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Madison Elementary School (math 22% / reading 27%, grade F, #445 of 502 statewide, top 91%, 210 students, 68% FRL); Madison Middle School (math 17% / reading 22%, grade F, #121 of 128 statewide, top 95%, 106 students, 73% FRL); Madison High School (math 34% / reading 34%, grade F, #208 of 261 statewide, top 86%, 160 students, 61% FRL).
• Watch-outs: built in 1906 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 14 active listings in the ZIP; 270 units permitted in Madison County in 2024 (196 in 5+ unit buildings).
• 2 sale attempts since 7y ago; this cycle's ask has dropped $10k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $88k; list at $170k implies a 93% gain — meaningful room to come down on a strong offer.
• At projected returns (3.9% appreciation + 3.0% rent growth), your $47k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$33k 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?
• It's been on market 147 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1906 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.