1417 2nd St Unit B

New Glarus, WI 53574

$260,000F

2 bd · 1.5 ba · 1,560 sqft · Built 2005 · Condo · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,231/mo
• Mortgage (P&I): −$1,363
• Tax + insurance: −$440
• HOA: −$0
• Vac / Maint / Mgmt: −$258
• Net cashflow: $-831/mo
• Annual: $-9,972/yr
• Cap rate: 2.46%
• Cash-on-cash: -13.70%
• DSCR: 0.39
• 1% rule: 0.47%
• Cash to close: $72,800

Investor read

• This is a 2-bed/1.5-bath condo listed at $260k.
• At list price, monthly cash flow is $-831 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $113k (56.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $123k (52.7% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $113k (56.5% below list) — sets the bar for cash-flow.
• In year one you build about $28k of equity ($2k loan paydown + $26k appreciation (10.0% local appreciation)).
• Location reads 85/100 on livability (#31 in WI, #593 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: commute F.
• New Glarus School District (rural): math 49% / reading 51% proficiency, ranked #48 of 342 in WI (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: New Glarus Elementary (math 62% / reading 54%, grade C+, #124 of 1,041 statewide, top 12%, 422 students, 19% FRL); New Glarus Middle (math 42% / reading 52%, grade D+, #73 of 383 statewide, top 22%, 219 students, 21% FRL); New Glarus High (math 32% / reading 37%, grade F, #144 of 483 statewide, top 36%, 320 students, 22% FRL) — zoned schools at 21% FRL track the district average.
• Market conditions: 22 active listings in the ZIP; 62 units permitted in Green County in 2024 (0 in 5+ unit buildings).
• Green County population projected to shrink 6% 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.
• By year 2, paydown + projected appreciation supports a ~$45k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• 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?
• 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.
• 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.