977 Velp Ave

Green Bay, WI 54303

$86,000C-

1 bd · 1.0 ba · 450 sqft · Built 1916 · Other · Active · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $901/mo
• Mortgage (P&I): −$451
• Tax + insurance: −$105
• HOA: −$0
• Vac / Maint / Mgmt: −$189
• Net cashflow: $156/mo
• Annual: $1,868/yr
• Cap rate: 8.46%
• Cash-on-cash: 7.76%
• DSCR: 1.35
• 1% rule: 1.05%
• Cash to close: $24,080

Investor read

• This is a 1-bed/1.0-bath other listed at $86k.
• At list price, monthly cash flow is $156 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($901 rent vs $86k).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $595 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#238 in WI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A; Watch: crime D, schools D-, commute F.
• Green Bay Area Public School District (urban): math 18% / reading 20% proficiency, ranked #333 of 342 in WI (top 97%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1916 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.6%/yr); 44 active listings in the ZIP; 1,585 units permitted in Brown County in 2024 (877 in 5+ unit buildings).
• Brown County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 8.5% vs local median 3.2% in Green Bay — 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 is only 18% of the median local income ($61k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Questions for listing agent

• Built in 1916 — 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 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.