4242 S 178th St

Omaha, NE 68135

$279,000D

2 bd · 2.0 ba · 1,433 sqft · Built 2001 · Other · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,097/mo
• Mortgage (P&I): −$1,463
• Tax + insurance: −$441
• HOA: −$105
• Vac / Maint / Mgmt: −$440
• Net cashflow: $-353/mo
• Annual: $-4,235/yr
• Cap rate: 4.78%
• Cash-on-cash: -5.42%
• DSCR: 0.76
• 1% rule: 0.75%
• Cash to close: $78,120

Investor read

• This is a 2-bed/2.0-bath other listed at $279k.
• At list price, monthly cash flow is $-353 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $217k (22.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $210k (24.9% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $210k (24.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#7 in NE, #663 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime F.
• Millard Public Schools (urban): math 58% / reading 60% proficiency, ranked #13 of 111 in NE (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Rohwer Elementary School (math 67% / reading 73%, grade A-, #38 of 502 statewide, top 7%, 463 students, 18% FRL); Russell Middle School (math 63% / reading 63%, grade B+, #15 of 128 statewide, top 11%, 779 students, 16% FRL); Millard West High School (math 70% / reading 69%, grade B, #13 of 261 statewide, top 7%, 2,309 students, 14% FRL) — zoned schools at 16% FRL track the district average.
• Market conditions: Rents rising (+3.3%/yr); 244 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 4,539 units permitted in Douglas County in 2024 (2,583 in 5+ unit buildings).
• Douglas County population projected at +28% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 25y ago 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.
• Current owner paid $175k; list at $279k implies a 59% gain — meaningful room to come down on a strong offer.
• Cap rate 4.8% vs local median 3.6% in Omaha — 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 is only 18% of the median local income ($144k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.