104 Grove St #2

Lake Hallie, WI 54729

$209,499B-

4 bd · 2.0 ba · 2,218 sqft · Built 1918 · MultiFamily · Active · 36 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,664/mo
• Mortgage (P&I): −$1,099
• Tax + insurance: −$349
• HOA: −$0
• Vac / Maint / Mgmt: −$559
• Net cashflow: $657/mo
• Annual: $7,881/yr
• Cap rate: 10.05%
• Cash-on-cash: 13.44%
• DSCR: 1.60
• 1% rule: 1.27%
• Cash to close: $58,660

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $209k. Condition is rated average.
• At list price, monthly cash flow is $657 ($8k/yr) — positive. Per door: $328/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $209k).
• It's been on market 36 days — a 3% lower offer ($203k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $203k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#320 in WI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: schools D+, health & safety D, amenities F.
• Chippewa Falls Area Unified School District (suburban): math 39% / reading 39% proficiency, ranked #165 of 342 in WI (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1918 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.9%/yr); 171 active listings in the ZIP; solid renter incomes; 368 units permitted in Chippewa County in 2024 (142 in 5+ unit buildings).
• Chippewa County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 1.9% rent growth), your $59k cash investment doubles in ~10 years — after that, you're playing with house money.
• Cap rate 10.1% vs local median 1.4% in Lake Hallie — 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.
• This rent runs 42% of the median local income ($76k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 36 days. Have you received any prior offers? Is the seller open to a 3% 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 1918 — 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 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?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Slight wear and tear visible.
• Minor: Bathroom fixtures — Signs of wear and tear visible.
• Minor: Landscaping — Basic landscaping could be improved for better curb appeal.