831 College Ave #833

Racine, WI 53403

$799,000F

None bd · None ba · — sqft · Built 1928 · Condo · Active · 105 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,015/mo
• Mortgage (P&I): −$4,190
• Tax + insurance: −$1,332
• HOA: −$0
• Vac / Maint / Mgmt: −$213
• Net cashflow: $-4,720/mo
• Annual: $-56,640/yr
• Cap rate: -0.80%
• Cash-on-cash: -25.32%
• DSCR: -0.13
• 1% rule: 0.13%
• Cash to close: $223,720

Investor read

• This is a condo listed at $799k. Condition is rated fair.
• At list price, monthly cash flow is $-5k ($-57k/yr) — negative.
• To cash-flow at today's rent, offer at most $116k (85.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $101k (87.3% below list).
• It's been on market 105 days — a 9% lower offer ($727k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $101k (87.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $24k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#58 in WI, #1,622 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: employment D.
• Racine Unified School District (urban): math 12% / reading 20% proficiency, ranked #335 of 342 in WI (top 98%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Case High (math 16% / reading 33%, grade F, #287 of 483 statewide, top 71%, 1,884 students, 51% FRL).
• Watch-outs: built in 1928 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.8%/yr); 91 active listings in the ZIP; 20 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 505 units permitted in Racine County in 2024 (287 in 5+ unit buildings).
• Racine County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts 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.
• Cap rate -0.8% vs local median 4.0% in Racine — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 105 days. Have you received any prior offers? Is the seller open to a 87% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1928 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Light wear
• Minor: Kitchen countertops — Scratches
• Minor: Bathroom fixtures — Some wear
• Minor: Paint — Light wear