3255 S 12 St

Lincoln, NE 68502

$549,000D

12 bd · None ba · 3,840 sqft · Built 1974 · MultiFamily · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,340/mo
• Mortgage (P&I): −$2,879
• Tax + insurance: −$660
• HOA: −$0
• Vac / Maint / Mgmt: −$911
• Net cashflow: $-111/mo
• Annual: $-1,330/yr
• Cap rate: 6.05%
• Cash-on-cash: -0.86%
• DSCR: 0.96
• 1% rule: 0.79%
• Cash to close: $153,720

Investor read

• This is a 6 × 1-bed/1-bath units multifamily listed at $549k.
• At list price, monthly cash flow is $-111 ($-1k/yr) — negative. Per door: $-18/mo.
• To cash-flow at today's rent, offer at most $529k (3.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $434k (20.9% below list).
• It's been on market 88 days — a 6% lower offer ($516k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $434k (20.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• 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.
• Zoned schools: Beattie Elementary School (math 57% / reading 57%, grade C+, #136 of 502 statewide, top 31%, 360 students, 37% FRL); Irving Middle School (math 50% / reading 55%, grade C+, #42 of 128 statewide, top 32%, 890 students, 46% FRL); Lincoln Southeast High School (math 51% / reading 52%, grade D+, #105 of 261 statewide, top 40%, 1,929 students, 16% FRL) — zoned schools at 33% FRL track the district average.
• Market conditions: Rents rising (+2.4%/yr); 146 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.
• Cap rate 6.1% vs local median 3.0% in Lincoln — 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.
• At $4,340/mo this rent would consume 76% of the median local household income ($69k/yr) (locally 1252% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 88 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• 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 1974 — 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 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?