S77W19405 Lakewood Dr

Muskego, WI 53150

$269,900D

2 bd · 2.0 ba · 1,263 sqft · Built 2002 · Condo · Active · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,383/mo
• Mortgage (P&I): −$1,415
• Tax + insurance: −$272
• HOA: −$275
• Vac / Maint / Mgmt: −$500
• Net cashflow: $-80/mo
• Annual: $-962/yr
• Cap rate: 5.94%
• Cash-on-cash: -1.27%
• DSCR: 0.94
• 1% rule: 0.88%
• Cash to close: $75,572

Investor read

• This is a 2-bed/2.0-bath condo listed at $270k.
• At list price, monthly cash flow is $-80 ($-962/yr) — negative.
• To cash-flow at today's rent, offer at most $256k (5.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $238k (11.7% below list).
• It's been on market 17 days — a 2% lower offer ($266k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $238k (11.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#228 in WI) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Muskego-Norway School District (suburban): math 73% / reading 61% proficiency, ranked #5 of 342 in WI (top 2%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Mill Valley Elementary (math 89% / reading 77%, grade A+, #1 of 1,041 statewide, top 0%, 448 students, 13% FRL); Lake Denoon Middle (math 76% / reading 54%, grade A-, #8 of 383 statewide, top 2%, 724 students, 13% FRL); Muskego High (math 50% / reading 57%, grade C-, #28 of 483 statewide, top 6%, 1,686 students, 4% FRL) — zoned schools at 10% FRL track the district average.
• Market conditions: 52 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals leasing fast (median 4d on market — plan ~1-2 weeks tenant-placement turnaround); 1,885 units permitted in Waukesha County in 2024 (696 in 5+ unit buildings).
• 4 sale attempts since 12y ago; this cycle's ask is 35% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $194k; 39% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 5.9% vs local median 1.6% in Muskego — 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.
• 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.