738 Charles Ln #212

Stoughton, WI 53589

$75,000B

3 bd · 2.0 ba · 1,200 sqft · Built 1998 · SingleFamily · Active · 76 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,875/mo
• Mortgage (P&I): −$393
• Tax + insurance: −$125
• HOA: −$0
• Vac / Maint / Mgmt: −$394
• Net cashflow: $963/mo
• Annual: $11,558/yr
• Cap rate: 21.70%
• Cash-on-cash: 55.04%
• DSCR: 3.45
• 1% rule: 2.50%
• Cash to close: $21,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $75k. Condition is rated good.
• At list price, monthly cash flow is $963 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $75k).
• It's been on market 76 days — a 6% lower offer ($70k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $70k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $519 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#64 in WI, #1,713 nationally) — a professional / high-income tenant draw. Strengths: housing A+, health & safety A+, amenities A; Watch: commute F.
• Stoughton Area School District (suburban): math 33% / reading 38% proficiency, ranked #197 of 342 in WI (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Fox Prairie Elementary (math 42% / reading 37%, grade F, #490 of 1,041 statewide, top 53%, 388 students, 24% FRL); River Bluff Middle (math 25% / reading 39%, grade F, #232 of 383 statewide, top 64%, 582 students, 32% FRL); Stoughton High (math 32% / reading 42%, grade F, #123 of 483 statewide, top 28%, 875 students, 25% FRL) — zoned schools at 27% FRL track the district average.
• Market conditions: 208 active listings in the ZIP; solid renter incomes; 5,519 units permitted in Dane County in 2024 (3,978 in 5+ unit buildings).
• Dane County population projected at +35% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 21.7% vs local median 2.1% in Stoughton — 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 76 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• 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.
• 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.