825 Kurtis Dr

Elm Grove, WI 53122

$400,000B-

3 bd · 1.5 ba · 1,834 sqft · Built 1951 · SingleFamily · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,277/mo
• Mortgage (P&I): −$2,098
• Tax + insurance: −$572
• HOA: −$0
• Vac / Maint / Mgmt: −$898
• Net cashflow: $709/mo
• Annual: $8,513/yr
• Cap rate: 8.42%
• Cash-on-cash: 7.60%
• DSCR: 1.34
• 1% rule: 1.07%
• Cash to close: $112,000

Investor read

• This is a 3-bed/1.5-bath single-family listed at $400k.
• At list price, monthly cash flow is $709 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $400k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#26 in WI, #471 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, cost of living 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: Tonawanda Elementary (math 72% / reading 67%, grade A-, #24 of 1,041 statewide, top 3%, 525 students, 9% FRL); Brookfield East High (math 55% / reading 60%, grade C, #16 of 483 statewide, top 3%, 1,362 students, 8% FRL) — zoned schools at 8% FRL track the district average.
• Watch-outs: built in 1951 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 28 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 1,885 units permitted in Waukesha County in 2024 (696 in 5+ unit buildings).
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.4% vs local median 2.9% in Elm Grove — 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.
• This rent runs 32% of the median local income ($158k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Built in 1951 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.