6940 W Gage Rd

Hallam, NE 68368

$240,000D

5 bd · 4.5 ba · 3,406 sqft · Built 1950 · SingleFamily · Active · 173 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,535/mo
• Mortgage (P&I): −$1,259
• Tax + insurance: −$400
• HOA: −$0
• Vac / Maint / Mgmt: −$322
• Net cashflow: $-446/mo
• Annual: $-5,347/yr
• Cap rate: 4.06%
• Cash-on-cash: -7.96%
• DSCR: 0.65
• 1% rule: 0.64%
• Cash to close: $67,200

Investor read

• This is a 5-bed/4.5-bath single-family listed at $240k.
• At list price, monthly cash flow is $-446 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $176k (26.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $154k (36.0% below list).
• It's been on market 173 days — a 12% lower offer ($211k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $154k (36.0% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($2k loan paydown + $5k appreciation (1.9% local appreciation)).
• Location reads 65/100 on livability (#330 in NE) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Crete Public Schools (town): math 46% / reading 44% proficiency, ranked #82 of 111 in NE (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Crete Elementary School (450 students, 64% FRL); Crete Middle School (math 48% / reading 45%, grade D+, #59 of 128 statewide, top 46%, 477 students, 0% FRL); Crete High School (math 37% / reading 32%, grade F, #208 of 261 statewide, top 86%, 690 students, 51% FRL).
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 36 active listings in the ZIP; 1,940 units permitted in Lancaster County in 2024 (895 in 5+ unit buildings).
• Lancaster County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 6, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• It's been on market 173 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.