15872 W 2nd St

Hayward, WI 54843

$185,000D+

3 bd · 1.0 ba · 1,416 sqft · Built 1900 · Other · Active · 233 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,393/mo
• Mortgage (P&I): −$970
• Tax + insurance: −$175
• HOA: −$0
• Vac / Maint / Mgmt: −$293
• Net cashflow: $-44/mo
• Annual: $-529/yr
• Cap rate: 6.01%
• Cash-on-cash: -1.02%
• DSCR: 0.95
• 1% rule: 0.75%
• Cash to close: $51,800

Investor read

• This is a 3-bed/1.0-bath other listed at $185k.
• At list price, monthly cash flow is $-44 ($-529/yr) — negative.
• To cash-flow at today's rent, offer at most $177k (4.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $139k (24.7% below list).
• It's been on market 233 days — a 12% lower offer ($163k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $139k (24.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#122 in WI, #3,155 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, amenities A; Watch: employment D+, crime F, commute D-.
• Hayward Community School District (rural): math 40% / reading 38% proficiency, ranked #187 of 342 in WI (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hayward Primary (416 students, 50% FRL); Hayward Middle (math 37% / reading 34%, grade F, #200 of 383 statewide, top 53%, 347 students, 50% FRL); Hayward High (math 37% / reading 42%, grade F, #99 of 483 statewide, top 24%, 529 students, 49% FRL) — zoned schools at 50% FRL track the district average.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 212 active listings in the ZIP; 228 units permitted in Sawyer County in 2024 (16 in 5+ unit buildings).
• Sawyer County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Cap rate 6.0% vs local median 1.6% in Hayward — 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 233 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• Crime grade is F 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?
• 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?