1805 E 8th St

Superior, WI 54880

$199,000C-

3 bd · 2.0 ba · 1,431 sqft · Built 1898 · Other · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,034/mo
• Mortgage (P&I): −$1,044
• Tax + insurance: −$265
• HOA: −$0
• Vac / Maint / Mgmt: −$427
• Net cashflow: $298/mo
• Annual: $3,581/yr
• Cap rate: 8.09%
• Cash-on-cash: 6.43%
• DSCR: 1.29
• 1% rule: 1.02%
• Cash to close: $55,720

Investor read

• This is a 3-bed/2.0-bath other listed at $199k.
• At list price, monthly cash flow is $298 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $199k).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#21 in WI, #337 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+.
• Superior School District (suburban): math 23% / reading 34% proficiency, ranked #290 of 342 in WI (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Great Lakes Elementary (math 42% / reading 42%, grade F, #433 of 1,041 statewide, top 46%, 388 students, 40% FRL); Superior Middle (math 18% / reading 32%, grade F, #315 of 383 statewide, top 82%, 903 students, 51% FRL); Superior High (math 22% / reading 44%, grade F, #182 of 483 statewide, top 38%, 1,306 students, 42% FRL) — zoned schools at 45% FRL track the district average.
• Watch-outs: built in 1898 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.8%/yr); 168 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 110 units permitted in Douglas County in 2024 (0 in 5+ unit buildings).
• Douglas County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 10y 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 $78k; list at $199k implies a 155% gain — meaningful room to come down on a strong offer.
• Cap rate 8.1% vs local median 4.6% in Superior — 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 runs 36% of the median local income ($68k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Built in 1898 — 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.