N550 Gannon Rd Unit M45

Lake Wisconsin, WI 53555

$45,000B-

2 bd · 1.0 ba · 516 sqft · Built 1962 · SingleFamily · Pending · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,140/mo
• Mortgage (P&I): −$236
• Tax + insurance: −$75
• HOA: −$0
• Vac / Maint / Mgmt: −$239
• Net cashflow: $590/mo
• Annual: $7,075/yr
• Cap rate: 22.01%
• Cash-on-cash: 56.15%
• DSCR: 3.50
• 1% rule: 2.53%
• Cash to close: $12,600

Investor read

• This is a 2-bed/1.0-bath single-family listed at $45k. Condition is rated fair.
• At list price, monthly cash flow is $590 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $45k).
• It's been on market 40 days — a 3% lower offer ($44k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $44k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $311 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#418 in WI) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: cost of living D+, health & safety D, amenities F.
• Lodi School District (town): math 29% / reading 36% proficiency, ranked #226 of 342 in WI (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Lodi Primary (395 students, 12% FRL); Lodi Middle (math 20% / reading 37%, grade F, #282 of 383 statewide, top 76%, 335 students, 19% FRL); Lodi High (math 47% / reading 52%, grade D, #36 of 483 statewide, top 9%, 451 students, 14% FRL) — zoned schools at 15% FRL track the district average.
• Market conditions: 43 active listings in the ZIP; 219 units permitted in Columbia County in 2024 (45 in 5+ unit buildings).
• Columbia County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 22.0% vs local median 0.2% in Lake Wisconsin — 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 40 days. Have you received any prior offers? Is the seller open to a 3% 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 1962 — 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.
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?
• What's the documented flood / surge / shoreline-erosion history here (FEMA AND non-FEMA — e.g., storm surge, creek backup, septic-field saturation)?
• Any water-quality or seasonal algae-bloom issues that affect tenant satisfaction or short-term-rental demand?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Paint — Paint appears chipped and faded in some areas
• Minor: Flooring — Carpet appears worn in some areas
• Minor: Windows — Curtains are present but may need cleaning