510 W Main St

Waterford, WI 53185

$289,900D

6 bd · 5.0 ba · 1,743 sqft · Built 1902 · Other · Active · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,215/mo
• Mortgage (P&I): −$1,520
• Tax + insurance: −$371
• HOA: −$0
• Vac / Maint / Mgmt: −$465
• Net cashflow: $-141/mo
• Annual: $-1,697/yr
• Cap rate: 5.71%
• Cash-on-cash: -2.09%
• DSCR: 0.91
• 1% rule: 0.76%
• Cash to close: $81,172

Investor read

• This is a 6-bed/5.0-bath other listed at $290k.
• At list price, monthly cash flow is $-141 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $265k (8.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $221k (23.6% below list).
• It's been on market 35 days — a 3% lower offer ($281k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $221k (23.6% 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 $9k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#93 in WI, #2,332 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: amenities F, commute F.
• Waterford Graded J1 School District (town): math 54% / reading 47% proficiency, ranked #44 of 342 in WI (top 13%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Evergreen Elementary (math 67% / reading 42%, grade C, #166 of 1,041 statewide, top 20%, 314 students, 12% FRL); Fox River Middle (math 45% / reading 49%, grade D+, #73 of 383 statewide, top 22%, 478 students, 18% FRL); Waterford High (math 40% / reading 41%, grade F, #90 of 483 statewide, top 19%, 952 students, 11% FRL) — zoned schools at 14% FRL track the district average.
• Watch-outs: built in 1902 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 92 active listings in the ZIP; solid renter incomes; 505 units permitted in Racine County in 2024 (287 in 5+ unit buildings).
• Racine County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 4 sale attempts since 11y ago 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.
• Current owner paid $103k; list at $290k implies a 181% gain — meaningful room to come down on a strong offer.
• Cap rate 5.7% vs local median 1.7% in Waterford — 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 35 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1902 — 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?
• 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.