W1235 County Rd V

Berlin, WI 54923

$175,000D-

4 bd · 1.0 ba · 1,632 sqft · Built 1973 · SingleFamily · Active · 54 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,409/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$286
• HOA: −$0
• Vac / Maint / Mgmt: −$296
• Net cashflow: $-91/mo
• Annual: $-1,092/yr
• Cap rate: 6.05%
• Cash-on-cash: -0.87%
• DSCR: 0.96
• 1% rule: 0.81%
• Cash to close: $49,000

Investor read

• This is a 4-bed/1.0-bath single-family listed at $175k.
• At list price, monthly cash flow is $-91 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $159k (9.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $141k (19.5% below list).
• It's been on market 54 days — a 3% lower offer ($170k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $141k (19.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#420 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 D-.
• Berlin Area School District (town): math 37% / reading 37% proficiency, ranked #208 of 342 in WI (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Clay Lamberton Elementary (math 46% / reading 34%, grade F, #483 of 1,041 statewide, top 47%, 564 students, 52% FRL); Berlin Middle (math 35% / reading 41%, grade F, #166 of 383 statewide, top 44%, 293 students, 50% FRL); Berlin High (math 22% / reading 27%, grade F, #287 of 483 statewide, top 71%, 476 students, 40% FRL).
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: 38 active listings in the ZIP; 38 units permitted in Green Lake County in 2024 (0 in 5+ unit buildings).
• Green Lake County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $25k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 3.0% in Berlin — 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.

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 54 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.