10 Lapidary Ln #10

Janesville, WI 53548

$29,900B-

2 bd · 2.0 ba · 924 sqft · Built 2006 · Condo · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,200/mo
• Mortgage (P&I): −$157
• Tax + insurance: −$50
• HOA: −$450
• Vac / Maint / Mgmt: −$252
• Net cashflow: $292/mo
• Annual: $3,499/yr
• Cap rate: 18.00%
• Cash-on-cash: 41.79%
• DSCR: 2.86
• 1% rule: 4.01%
• Cash to close: $8,372

Investor read

• This is a 2-bed/2.0-bath condo listed at $30k. Condition is rated poor.
• At list price, monthly cash flow is $292 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $30k).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $207 of loan paydown is wiped out by about $897 of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#101 in WI, #2,663 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D, commute F.
• Janesville School District (urban): math 31% / reading 35% proficiency, ranked #254 of 342 in WI (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Van Buren Elementary (math 37% / reading 37%, grade F, #562 of 1,041 statewide, top 58%, 401 students, 48% FRL); Parker High (math 16% / reading 24%, grade F, #365 of 483 statewide, top 78%, 1,250 students, 51% FRL) — zoned schools at 50% FRL track the district average.
• Watch-outs: HOA is 37% of rent.
• Market conditions: 82 active listings in the ZIP; solid renter incomes; 629 units permitted in Rock County in 2024 (263 in 5+ unit buildings).
• Rock County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $20k; list at $30k implies a 53% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 18.0% vs local median 2.7% in Janesville — 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

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 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.

Repairs flagged (vision-AI assessment)

• Major: ceiling — Exposed ceiling and insulation
• Major: flooring — Exposed subfloor
• Major: interior walls — Exposed framing and insulation
• Major: roof — Exposed ceiling and insulation
• Major: systems — Exposed framing and insulation