224 Howard St

Walworth, WI 53184

$320,000B-

4 bd · 1.0 ba · 1,337 sqft · Built 1899 · Other · Active · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,700/mo
• Mortgage (P&I): −$1,678
• Tax + insurance: −$445
• HOA: −$0
• Vac / Maint / Mgmt: −$987
• Net cashflow: $1,590/mo
• Annual: $19,081/yr
• Cap rate: 12.26%
• Cash-on-cash: 21.30%
• DSCR: 1.95
• 1% rule: 1.47%
• Cash to close: $89,600

Investor read

• This is a 4-bed/1.0-bath other listed at $320k.
• At list price, monthly cash flow is $2k ($19k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $320k).
• It's been on market 34 days — a 3% lower offer ($310k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $310k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#183 in WI, #4,858 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools C-, amenities F, commute F.
• Walworth J1 School District (town): math 17% / reading 25% proficiency, ranked #327 of 342 in WI (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1899 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 24 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 474 units permitted in Walworth County in 2024 (77 in 5+ unit buildings).
• Current owner paid $149k; list at $320k implies a 115% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $90k cash investment doubles in ~6 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 34 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1899 — 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.
• 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.