464 E Rhine St

Elkhart Lake, WI 53020

$329,000D

3 bd · 1.5 ba · 1,656 sqft · Built 1920 · Other · Pending · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,650/mo
• Mortgage (P&I): −$1,725
• Tax + insurance: −$473
• HOA: −$0
• Vac / Maint / Mgmt: −$556
• Net cashflow: $-105/mo
• Annual: $-1,262/yr
• Cap rate: 5.91%
• Cash-on-cash: -1.37%
• DSCR: 0.94
• 1% rule: 0.81%
• Cash to close: $92,120

Investor read

• This is a 3-bed/1.5-bath other listed at $329k.
• At list price, monthly cash flow is $-105 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $310k (5.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $265k (19.5% below list).
• It's been on market 19 days — a 2% lower offer ($324k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $265k (19.5% below list) — sets the bar for 1% rule.
• 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 69/100 on livability (#340 in WI) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Elkhart Lake-Glenbeulah School District (rural): math 59% / reading 53% proficiency, ranked #33 of 342 in WI (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 3% free/reduced lunch — higher-income household profile.
• Zoned schools: Elkhart Lake Elementary/Middle (math 59% / reading 51%, grade C, #159 of 1,041 statewide, top 16%, 332 students, 0% FRL); Elkhart Lake High (math 54% / reading 64%, grade C+, #10 of 483 statewide, top 2%, 148 students, 0% FRL) — zoned schools at 0% FRL track the district average.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 36 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 383 units permitted in Sheboygan County in 2024 (105 in 5+ unit buildings).
• Sheboygan County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

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?
• Built in 1920 — 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.
• Schools are B-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?
• 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.
• 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.