9501 S 87th St

Lincoln, NE 68526

$439,995D-

4 bd · 3.0 ba · 2,219 sqft · Built 2026 · SingleFamily · Pending · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,606/mo
• Mortgage (P&I): −$2,307
• Tax + insurance: −$733
• HOA: −$50
• Vac / Maint / Mgmt: −$547
• Net cashflow: $-1,032/mo
• Annual: $-12,384/yr
• Cap rate: 3.48%
• Cash-on-cash: -10.05%
• DSCR: 0.55
• 1% rule: 0.59%
• Cash to close: $123,199

Investor read

• This is a 4-bed/3.0-bath single-family listed at $440k.
• At list price, monthly cash flow is $-1k ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $291k (33.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $261k (40.8% below list).
• It's been on market 25 days — a 2% lower offer ($433k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $261k (40.8% below list) — sets the bar for 1% rule.
• In year one you build about $15k of equity ($3k loan paydown + $12k appreciation (2.8% local appreciation)).
• Location reads 85/100 on livability (#5 in NE, #545 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, housing A+; Watch: crime D+.
• Lincoln Public Schools (urban): math 50% / reading 53% proficiency, ranked #59 of 111 in NE (top 53%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents falling (-3.0%/yr); 144 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 83% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 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 3, paydown + projected appreciation supports a ~$38k 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?
• 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.
• 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?
• Crime grade is D 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.