1040 College Ave · Racine, WI 53403

$213,075

4 bd · 3.0 ba · 2,892 sqft · MultiFamily public records · 5 Days on market

Built 1900 4,791 sqft lot $74/sqft · 5% above area Est $191k · 11% over

---

Why this score? — see what drove the C+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +9.3/10.0
• Rent growth +4.0/5.0
• Livability +4.0/5.0
• Condition / age +2.5/5.0
• ARV discount +2.4/15.0
• Schools +1.5/10.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 1 unit. estimate disagrees with records

Listing remarks

Towerview Neighborhood in the Historic District. Charm of Yesteryear located just 4 blocks West of Lake Michigan. Lower unit features professionally refinished, original hard wood floors. Both units have updated electric, gas furnaces and newer gas WH's. Currently the property is zoned for 3 units, Dedicated stairway to the attic. This area could be updated for an addition rental unit

Key facts

• Newer gas wh
• Updated electric
• Zoned for 3 units

Tags

• UPDATED ELECTRIC
• GAS FURNACES
• NEWER GAS WH
• ZONED FOR 3 UNITS
• ADDITION RENTAL UNIT

Property features AI

Finance

• Other: Lot size approximately 0.11 acre (less than 1/2 acre)
• Financial info: Total taxes listed (see public records for amount)

Exterior

• Parking: 1 parking space
• Utilities: Municipal water; Municipal sewer; Separate utility meters for each unit
• Home design: 2-story duplex; Multi-family property; Zoning: R-4
• Construction: Estimated size range 1,251–1,500 sq ft per unit; Property records list year built (per assessor/public record)
• Exterior features: Brick, stone, vinyl and wood exterior

Interior

• Kitchen: Unit 2 kitchen on upper level (approx. 14 x 11)
• Bedrooms: Unit 1: 1 bedroom; Unit 2: 3 bedrooms (master on upper level; other bedrooms on upper level)
• Bathrooms: Unit 1: 1 full bathroom; Unit 2: 2 full bathrooms
• Interior features: Full basement
• Laundry & utility: Separate electric and gas meters (2 electric meters, 2 gas meters)

What this means for you Summary

Snapshot

• This is a 4-bed/3.0-bath multifamily listed at $213k.

Deal economics

• At list price, monthly cash flow is $870 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $213k).
• Cap rate 11.2% vs local median 4.0% in Racine — 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.

Location & tenants

• Location reads 80/100 on livability (#58 in WI, #1,622 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: employment D, schools D-.
• Racine Unified School District (urban): math 12% / reading 20% proficiency, ranked #335 of 342 in WI (top 98%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: Rents rising fast (+5.8%/yr); 91 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 505 units permitted in Racine County in 2024 (287 in 5+ unit buildings).
• At $3,046/mo this rent would consume 61% of the median local household income ($60k/yr) (locally 1164% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• 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.
• Racine County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 5.8% rent growth), your $60k cash investment doubles in ~6 years — after that, you're playing with house money.

Negotiation context

• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $213,075

Questions for the listing agent

1. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. 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.
5. 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.
6. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.43% ✓
• Cap rate: 11.20%
• Cash-on-cash: 17.51%
• DSCR: 1.78
• GRM: 5.8

CMA / ARV

• ARV (median comp): $191,200
• List price: $213,075
• Delta: 11.44%
• Verdict: OVERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 4 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1722 Wisconsin Ave	0.70mi	4/2.0	2,760 (-5%)	6mo	$225,000	$82	51
1609 Grand Ave #1611	0.58mi	4/2.0	2,558 (-12%)	3mo	$250,000	$98	47
1120 13th St	0.48mi	4/2.0	2,665 (-8%)	22mo	$80,000	$30	42
901 S Memorial Dr	0.71mi	4/1.5	2,755 (-5%)	16mo	$71,000	$26	40

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 5.84% rent growth · sell at horizon

5-year hold

• IRR: 12.2%
• Equity multiple: 1.50×
• Total profit: $29,947
• Equity at exit: $31,770

10-year hold

• IRR: 23.3%
• Equity multiple: 3.29×
• Total profit: $136,743
• Equity at exit: $18,423

Cash invested: $59,661 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 73 Landlord-Friendly
• State Wisconsin: 73 Landlord-Friendly · R+2
• County: — inherits STATE
• City: — inherits STATE

5-day notice; preempted; Madison / Milwaukee have some local enforcement.

Methodology + full state rankings →

ZIP-level market 53403

• Rents YoY: 5.8%
• Active inventory: 91
• Price-to-rent: 17.5×

Monthly cashflow live

• Estimated rent: $3,046 high
• Mortgage (P&I): −$1,117
• Tax from tax record: −$330 /mo · $3,957/yr
• Insurance: −$89
• HOA: −$0
• Vacancy / Maint / Mgmt: −$640
• Net cashflow: $870

Break-even live

Break-even rent $1,944

Max offer price $213,075

Occupancy floor 66%

3-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 3× units	2	1	$3,045
Total (3 units)			$3,046

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $53,269
• Closing costs: $6,392
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1300 Buchanan St Racine, WI	5.0	1.5	2282	$1,850	$0.81	21d	1	1.18mi

Listing history 2 events

1. 2026-05-18
   status Pending 391-char remark
2. 2026-05-13
   listed $213,075 Active 391-char remark

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast WI · Partial reset (capped growth)

• Current annual tax: $3,957 · $330/mo
• Projected year-2 tax: $3,957 · $330/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥95°F today · 14 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $36,552
• − Mortgage interest: −$11,936
• − Property taxes: −$3,957
• − Insurance: −$1,065
• − Repairs & maintenance: −$2,924
• − Management: −$2,924
• − Depreciation: −$6,199
• Taxable income: $7,547
• Est. tax owed @ 24.0%: −$1,811
• After-tax cash flow: $8,634/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Racine Unified School District
• NCES district ID: 5512360
• Math proficiency: 12% ▼ -7.00%
• Reading proficiency: 20% ▬ 0.00%
• Median HH income: $50,716
• Composite: 14.64/100
• National rank: #9405
• State rank: #335 of 342 in WI

Livability — Racine

• Score: 80/100
• State rank: #58
• US rank: #1622

Category grades

Amenities B- Commute A+ Cost of living A+ Crime C Employment D Housing A+ Health & safety A+ User ratings D

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Racine, WI
• County: Racine County · 146,693 people
• City population: 67,505
• Metro: Racine, WI
• Population (ZIP): 27,009
• Household income: $59,820
• Rent vs Own: 41.6% rent · 58.4% own
• Severe rent burden: 1164.0

Population outlook (Racine County) Hauer SSP2

• Today (2025): 195,281 people
• By 2030: 193,725 · -0.8%
• By 2040: 188,159 · -3.6%
• By 2050: 181,323 · -7.1%
• By 2075: 174,342 · -10.7%
• By 2100: 166,870 · -14.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.69)
• Race & ethnicity: White 42% Black 27% Hispanic / Latino 24% Two or more races 16%
• Hispanic origin (detail): Mexican 19% Puerto Rican 3%
• Common ancestry: Romanian 3% Portuguese 2% Lithuanian 2%
• Foreign-born: 7% · Canada
• Languages at home: 84% English-only · Spanish 15%

Political lean MEDSL · Racine

• 2024 margin: Lean R (+6.2) · D 46.3% · R 52.5% · Other 1.2%
• 2008→2024 swing: -13.6pp toward R · 2008: 7.4pp · 2024: -6.2pp
• All cycles: 2024: R+6.2 2020: R+4.1 2016: R+4.4 2012: D+3.6 2008: D+7.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -147.08%
• Current HPI: 191.0012
• Rent YoY: ▲ 5.84%
• Metro: Racine, WI
• State GDP YoY: ▲ 2.10%
• F500 in state: 20

Industry mix (Fortune 500 HQ in WI)

Industry	F500 HQs	Revenue
▸Industrial Machinery	4	$23B
▸Industrial Technology	2	$36B
▸Insurance	1	$36B
▸Professional Services	1	$19B
▸Utilities	1	$9B
▸Consumer Goods	1	$3B

Price history

2 events — show timeline

• 2026-05-18 Pending — METROMLS
• 2026-05-13 Listed $213,075 METROMLS

Property tax history

-0.5%/yr

Latest (2025): $3,957 · +751.2% YoY. Source: county tax records.