1727 Innovation Ln

Verona, WI 53593

$417,900D

3 bd · 2.5 ba · 1,480 sqft · Built 2026 · Other · Active · 101 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,700/mo
• Mortgage (P&I): −$2,192
• Tax + insurance: −$286
• HOA: −$32
• Vac / Maint / Mgmt: −$567
• Net cashflow: $-377/mo
• Annual: $-4,524/yr
• Cap rate: 5.21%
• Cash-on-cash: -3.87%
• DSCR: 0.83
• 1% rule: 0.65%
• Cash to close: $117,012

Investor read

• This is a 3-bed/2.5-bath other listed at $418k.
• At list price, monthly cash flow is $-377 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $351k (15.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $270k (35.4% below list).
• It's been on market 101 days — a 9% lower offer ($380k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $270k (35.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 91/100 on livability (#3 in WI, #41 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: cost of living C-, amenities D.
• Verona Area School District (suburban): math 39% / reading 42% proficiency, ranked #113 of 342 in WI (top 33%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Country View Elementary (math 42% / reading 42%, grade F, #433 of 1,041 statewide, top 46%, 396 students, 28% FRL); Savanna Oaks Middle (math 31% / reading 41%, grade F, #188 of 383 statewide, top 52%, 394 students, 34% FRL); Verona Area High (math 31% / reading 38%, grade F, #144 of 483 statewide, top 36%, 1,802 students, 29% FRL).
• Market conditions: Rents rising (+2.2%/yr); 292 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 5,519 units permitted in Dane County in 2024 (3,978 in 5+ unit buildings).
• Dane County population projected at +35% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 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.
• Cap rate 5.2% vs local median 2.8% in Verona — 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 101 days. Have you received any prior offers? Is the seller open to a 35% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?
• 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.