505 N 6th St Unit 601 McClellan

Wausau, WI 54403

$1,750,000F

None bd · None ba · — sqft · Built 1959 · Condo · Active · 311 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $979/mo
• Mortgage (P&I): −$9,177
• Tax + insurance: −$2,917
• HOA: −$0
• Vac / Maint / Mgmt: −$206
• Net cashflow: $-11,320/mo
• Annual: $-135,841/yr
• Cap rate: -1.47%
• Cash-on-cash: -27.72%
• DSCR: -0.23
• 1% rule: 0.06%
• Cash to close: $490,000

Investor read

• This is a condo listed at $1.75M.
• At list price, monthly cash flow is $-11k ($-136k/yr) — negative.
• To cash-flow at today's rent, offer at most $112k (93.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $98k (94.4% below list).
• It's been on market 311 days — a 12% lower offer ($1.54M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $98k (94.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $12k of loan paydown is wiped out by about $52k of value loss. Plan a longer hold.
• Location reads 91/100 on livability (#4 in WI, #55 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: schools C-, employment D.
• Wausau School District (urban): math 33% / reading 36% proficiency, ranked #235 of 342 in WI (top 69%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 78 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 298 units permitted in Marathon County in 2024 (81 in 5+ unit buildings).
• Marathon County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts; this cycle's ask has dropped $149k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate -1.5% vs local median 3.3% in Wausau — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• This rent is only 17% of the median local income ($69k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 311 days. Have you received any prior offers? Is the seller open to a 94% concession, seller financing, or rate buy-down credit?
• Built in 1959 — 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.
• 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.