525 W Water St

Shullsburg, WI 53586

$128,000C-

2 bd · 1.0 ba · 845 sqft · Built 1900 · Other · Active · 54 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,209/mo
• Mortgage (P&I): −$671
• Tax + insurance: −$176
• HOA: −$0
• Vac / Maint / Mgmt: −$254
• Net cashflow: $108/mo
• Annual: $1,292/yr
• Cap rate: 7.30%
• Cash-on-cash: 3.60%
• DSCR: 1.16
• 1% rule: 0.94%
• Cash to close: $35,840

Investor read

• This is a 2-bed/1.0-bath other listed at $128k.
• At list price, monthly cash flow is $108 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $121k (5.6% below list).
• It's been on market 54 days — a 3% lower offer ($124k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (5.6% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($885 loan paydown + $13k appreciation (10.0% local appreciation)).
• Location reads 76/100 on livability (#138 in WI, #3,666 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment C-, amenities D, commute F.
• Shullsburg School District (rural): math 40% / reading 40% proficiency, ranked #253 of 426 in WI (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Shullsburg Elementary (math 47% / reading 32%, grade F, #490 of 1,041 statewide, top 53%, 133 students, 53% FRL); Shullsburg High (math 30% / reading 50%, grade F, #95 of 483 statewide, top 20%, 103 students, 43% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 9 active listings in the ZIP; 67 units permitted in Lafayette County in 2024 (0 in 5+ unit buildings).
• Lafayette County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 54 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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.
• 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.