18275 Brookfield Lake Dr Unit 93

Brookfield, WI 53045

$274,000D

2 bd · 2.0 ba · 1,213 sqft · Built 1993 · Condo · Pending · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,528/mo
• Mortgage (P&I): −$1,437
• Tax + insurance: −$297
• HOA: −$385
• Vac / Maint / Mgmt: −$531
• Net cashflow: $-122/mo
• Annual: $-1,460/yr
• Cap rate: 5.76%
• Cash-on-cash: -1.90%
• DSCR: 0.92
• 1% rule: 0.92%
• Cash to close: $76,720

Investor read

• This is a 2-bed/2.0-bath condo listed at $274k.
• At list price, monthly cash flow is $-122 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $253k (7.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $253k (7.7% below list).
• It's been on market 62 days — a 6% lower offer ($258k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $253k (7.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#75 in WI, #1,988 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: cost of living D, amenities F, commute F.
• Elmbrook School District (suburban): math 61% / reading 60% proficiency, ranked #14 of 342 in WI (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 8% free/reduced lunch — higher-income household profile.
• Zoned schools: Swanson Elementary (math 59% / reading 53%, grade C+, #154 of 1,041 statewide, top 15%, 823 students, 10% FRL); Wisconsin Hills Middle (math 59% / reading 59%, grade B, #23 of 383 statewide, top 6%, 814 students, 10% FRL); Brookfield Central High (math 57% / reading 65%, grade C+, #5 of 483 statewide, top 1%, 1,192 students, 10% FRL) — zoned schools at 10% FRL track the district average.
• Market conditions: 52 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 1,885 units permitted in Waukesha County in 2024 (696 in 5+ unit buildings).
• Cap rate 5.8% vs local median 2.9% in Brookfield — 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 62 days. Have you received any prior offers? Is the seller open to a 8% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 A-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?