5220 Spruce St

Laona, WI 54541

$200,000B+

8 bd · 4.0 ba · 3,168 sqft · Built — · MultiFamily · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,379/mo
• Mortgage (P&I): −$1,049
• Tax + insurance: −$333
• HOA: −$0
• Vac / Maint / Mgmt: −$710
• Net cashflow: $1,287/mo
• Annual: $15,447/yr
• Cap rate: 14.02%
• Cash-on-cash: 27.58%
• DSCR: 2.23
• 1% rule: 1.69%
• Cash to close: $56,000

Investor read

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $200k.
• At list price, monthly cash flow is $1k ($15k/yr) — positive. Per door: $322/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $200k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $17k of equity ($1k loan paydown + $16k appreciation (7.9% local appreciation)).
• Location reads 67/100 on livability (#427 in WI) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: crime C-, amenities F, commute F.
• Laona School District (rural): math 50% / reading 45% proficiency, ranked #154 of 426 in WI (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Laona High (math 24% / reading 34%, grade F, #228 of 483 statewide, top 52%, 129 students, 40% FRL) — zoned schools at 40% FRL track the district average.
• Zoned-school proficiency averages 30% at this address vs 48% district-wide (-18 pts) — the specific schools serving this property underperform the Laona School District average; the district grade overstates school quality for this exact location.
• Market conditions: 14 active listings in the ZIP; 69 units permitted in Forest County in 2024 (0 in 5+ unit buildings).
• Forest County population projected at -28% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (7.9% appreciation + 3.0% rent growth), your $56k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.