2626 7 1/4 Ave #5

Chetek, WI 54728

$59,900B+

2 bd · 1.0 ba · 680 sqft · Built 1950 · Condo · Active · 100 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,143/mo
• Mortgage (P&I): −$314
• Tax + insurance: −$100
• HOA: −$100
• Vac / Maint / Mgmt: −$240
• Net cashflow: $389/mo
• Annual: $4,666/yr
• Cap rate: 14.08%
• Cash-on-cash: 27.82%
• DSCR: 2.24
• 1% rule: 1.91%
• Cash to close: $16,772

Investor read

• This is a 2-bed/1.0-bath condo listed at $60k. Condition is rated fair.
• At list price, monthly cash flow is $389 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $60k).
• It's been on market 100 days — a 9% lower offer ($55k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $55k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $414 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#378 in WI) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety D, amenities F, commute F.
• Zoned schools: Chetek-Weyerhaeuser Roselawn Elementary (math 52% / reading 42%, grade D-, #319 of 1,041 statewide, top 34%, 477 students, 47% FRL); Chetek-Weyerhaeuser Middle (math 37% / reading 47%, grade D-, #124 of 383 statewide, top 35%, 207 students, 41% FRL); Chetek-Weyerhaeuser High (math 24% / reading 34%, grade F, #228 of 483 statewide, top 52%, 243 students, 30% FRL).
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 56 active listings in the ZIP; 156 units permitted in Barron County in 2024 (0 in 5+ unit buildings).
• Barron County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $19k (24%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~5 years — after that, you're playing with house money.
• Cap rate 14.1% vs local median 2.3% in Chetek — 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 100 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Significant damage and wear
• Minor: interior paint — Worn paint