424 N Madison St

Brainard, NE 68626

$26,000C-

3 bd · 1.0 ba · 1,176 sqft · Built 1890 · SingleFamily · Pending · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,124/mo
• Mortgage (P&I): −$136
• Tax + insurance: −$34
• HOA: −$0
• Vac / Maint / Mgmt: −$236
• Net cashflow: $717/mo
• Annual: $8,609/yr
• Cap rate: 39.40%
• Cash-on-cash: 118.26%
• DSCR: 6.26
• 1% rule: 4.32%
• Cash to close: $7,280

Investor read

• This is a 3-bed/1.0-bath single-family listed at $26k.
• At list price, monthly cash flow is $717 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $26k).
• It's been on market 25 days — a 2% lower offer ($26k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $26k (1.5% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($180 loan paydown + $2k appreciation (6.3% local appreciation)).
• Location reads 70/100 on livability (#228 in NE) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment A-; Watch: health & safety C-, amenities F, commute F.
• East Butler Public Schools (rural): math 60% / reading 50% proficiency, ranked #103 of 245 in NE (top 42%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Elementary School At Brainard (math 62% / reading 72%, grade B+, #64 of 502 statewide, top 14%, 121 students, 6% FRL); High School At Brainard (math 44% / reading 34%, grade F, #184 of 261 statewide, top 76%, 129 students, 16% FRL) — zoned schools at 11% FRL track the district average.
• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 3 units permitted in Butler County in 2024 (0 in 5+ unit buildings).
• Butler County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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 $15k; list at $26k implies a 73% gain — meaningful room to come down on a strong offer.
• At projected returns (6.3% appreciation + 3.0% rent growth), your $7k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Built in 1890 — 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.
• 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?
• 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.