1170 2nd Ave Ave N

Park Falls, WI 54452

$159,900D+

3 bd · 1.0 ba · 1,225 sqft · Built — · Other · Active · 55 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,537/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$210
• HOA: −$0
• Vac / Maint / Mgmt: −$323
• Net cashflow: $166/mo
• Annual: $1,989/yr
• Cap rate: 7.54%
• Cash-on-cash: 4.44%
• DSCR: 1.20
• 1% rule: 0.96%
• Cash to close: $44,772

Investor read

• This is a 3-bed/1.0-bath other listed at $160k.
• At list price, monthly cash flow is $166 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $154k (3.9% below list).
• It's been on market 55 days — a 3% lower offer ($155k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $154k (3.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#329 in WI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: employment D, amenities F, commute F.
• Chequamegon School District (rural): math 25% / reading 29% proficiency, ranked #303 of 342 in WI (top 89%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Park Falls Elementary (math 37% / reading 22%, grade F, #705 of 1,041 statewide, top 71%, 280 students, 59% FRL); Chequamegon Middle (math 22% / reading 37%, grade F, #261 of 383 statewide, top 73%, 129 students, 50% FRL); Chequamegon High (math 24% / reading 24%, grade F, #287 of 483 statewide, top 71%, 218 students, 46% FRL).
• Market conditions: 74 active listings in the ZIP; 47 units permitted in Price County in 2024 (0 in 5+ unit buildings).
• Price County population projected at -25% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 11y 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 $22k; list at $160k implies a 611% gain — meaningful room to come down on a strong offer.

Questions for listing agent

• It's been on market 55 days. Have you received any prior offers? Is the seller open to a 4% concession, seller financing, or rate buy-down credit?
• 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.
• 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.