253 Tower Heights Ct Unit 1&2

Prescott, WI 54021

$349,900D

6 bd · 2.0 ba · 2,250 sqft · Built 1975 · MultiFamily · Pending · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,160/mo
• Mortgage (P&I): −$1,835
• Tax + insurance: −$583
• HOA: −$0
• Vac / Maint / Mgmt: −$664
• Net cashflow: $78/mo
• Annual: $940/yr
• Cap rate: 6.56%
• Cash-on-cash: 0.96%
• DSCR: 1.04
• 1% rule: 0.90%
• Cash to close: $97,972

Investor read

• This is a 2 × 3-bed/1.0-bath units multifamily listed at $350k. Condition is rated good.
• At list price, monthly cash flow is $78 ($940/yr) — positive. Per door: $39/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $316k (9.7% below list).
• It's been on market 62 days — a 6% lower offer ($329k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $316k (9.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#168 in WI, #4,459 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety D-.
• Prescott School District (town): math 48% / reading 51% proficiency, ranked #47 of 342 in WI (top 14%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Malone Elementary (math 67% / reading 56%, grade B, #95 of 1,041 statewide, top 9%, 460 students, 21% FRL); Prescott Middle (math 35% / reading 47%, grade F, #139 of 383 statewide, top 37%, 275 students, 20% FRL); Prescott High (math 42% / reading 52%, grade D-, #50 of 483 statewide, top 11%, 430 students, 14% FRL) — zoned schools at 18% FRL track the district average.
• Market conditions: 42 active listings in the ZIP; 191 units permitted in Pierce County in 2024 (0 in 5+ unit buildings).
• Pierce County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Cap rate 6.6% vs local median 2.3% in Prescott — 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

• It's been on market 62 days. Have you received any prior offers? Is the seller open to a 10% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1975 — 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 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?
• 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?