S2778 County Road K

Reedsburg, WI 53959

$159,900D

3 bd · 1.5 ba · 910 sqft · Built 1974 · Other · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,306/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$122
• HOA: −$0
• Vac / Maint / Mgmt: −$274
• Net cashflow: $71/mo
• Annual: $848/yr
• Cap rate: 6.82%
• Cash-on-cash: 1.89%
• DSCR: 1.08
• 1% rule: 0.82%
• Cash to close: $44,772

Investor read

• This is a 3-bed/1.5-bath other listed at $160k.
• At list price, monthly cash flow is $71 ($848/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 $131k (18.3% below list).
• It's been on market 26 days — a 2% lower offer ($158k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $131k (18.3% 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 74/100 on livability (#187 in WI, #4,937 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B+; Watch: health & safety D, amenities F, commute F.
• Reedsburg School District (town): math 31% / reading 36% proficiency, ranked #242 of 342 in WI (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Pineview Elementary (382 students, 46% FRL); Webb Middle (math 27% / reading 36%, grade F, #245 of 383 statewide, top 65%, 586 students, 47% FRL); Reedsburg Area High (math 36% / reading 46%, grade F, #88 of 483 statewide, top 18%, 898 students, 39% FRL).
• Market conditions: 66 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 527 units permitted in Sauk County in 2024 (268 in 5+ unit buildings).
• Cap rate 6.8% vs local median 2.2% in Reedsburg — 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

• Built in 1974 — 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.
• 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.