2029 W Donges Bay Rd #2031

Mequon, WI 53092

$450,000C-

4 bd · 2.0 ba · 2,284 sqft · Built 1928 · MultiFamily · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,467/mo
• Mortgage (P&I): −$2,360
• Tax + insurance: −$750
• HOA: −$0
• Vac / Maint / Mgmt: −$938
• Net cashflow: $419/mo
• Annual: $5,029/yr
• Cap rate: 7.41%
• Cash-on-cash: 3.99%
• DSCR: 1.18
• 1% rule: 0.99%
• Cash to close: $126,000

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $450k. Condition is rated good.
• At list price, monthly cash flow is $419 ($5k/yr) — positive. Per door: $210/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $447k (0.7% below list).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $447k (0.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#288 in WI) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, cost of living F.
• Mequon-Thiensville School District (suburban): math 60% / reading 61% proficiency, ranked #13 of 342 in WI (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Zoned schools: Donges Bay Elementary (math 72% / reading 67%, grade A-, #24 of 1,041 statewide, top 3%, 501 students, 10% FRL); Lake Shore Middle (math 61% / reading 66%, grade B+, #12 of 383 statewide, top 3%, 327 students, 9% FRL); Homestead High (math 49% / reading 62%, grade C, #18 of 483 statewide, top 4%, 1,265 students, 12% FRL) — zoned schools at 10% FRL track the district average.
• Watch-outs: built in 1928 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 65 active listings in the ZIP; high-income renter base; 575 units permitted in Ozaukee County in 2024 (280 in 5+ unit buildings).
• Ozaukee County population projected at +3% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 7.4% vs local median 1.3% in Mequon — 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.
• This rent runs 42% of the median local income ($128k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1928 — 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.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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)

• Minor: Kitchen cabinets — Some cabinets show signs of wear and tear.
• Minor: Kitchen countertops — Countertops appear to be in good condition but could benefit from a fresh coat of paint or a new finish.