868 Norman Dr #167

Dunn, WI 53589

$88,000B-

3 bd · 2.0 ba · 1,296 sqft · Built 1995 · SingleFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,916/mo
• Mortgage (P&I): −$461
• Tax + insurance: −$147
• HOA: −$0
• Vac / Maint / Mgmt: −$402
• Net cashflow: $905/mo
• Annual: $10,862/yr
• Cap rate: 18.64%
• Cash-on-cash: 44.08%
• DSCR: 2.96
• 1% rule: 2.18%
• Cash to close: $24,640

Investor read

• This is a 3-bed/2.0-bath single-family listed at $88k. Condition is rated good.
• At list price, monthly cash flow is $905 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $88k).
• It's been on market 15 days — a 2% lower offer ($87k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $87k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $608 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Stoughton Area School District (suburban): math 33% / reading 38% proficiency, ranked #197 of 342 in WI (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Stoughton High (math 32% / reading 42%, grade F, #123 of 483 statewide, top 28%, 875 students, 25% FRL) — zoned schools at 25% FRL track the district average.
• Market conditions: 203 active listings in the ZIP; solid renter incomes; 5,519 units permitted in Dane County in 2024 (3,978 in 5+ unit buildings).
• Dane County population projected at +35% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• 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.