425 E Broadway

Waukesha, WI 53186

$449,900D+

4 bd · 2.0 ba · 4,000 sqft · Built 1875 · MultiFamily · Pending · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,140/mo
• Mortgage (P&I): −$2,359
• Tax + insurance: −$750
• HOA: −$0
• Vac / Maint / Mgmt: −$869
• Net cashflow: $161/mo
• Annual: $1,937/yr
• Cap rate: 6.72%
• Cash-on-cash: 1.54%
• DSCR: 1.07
• 1% rule: 0.92%
• Cash to close: $125,972

Investor read

• This is a 4-bed/2.0-bath multifamily listed at $450k. Condition is rated poor.
• At list price, monthly cash flow is $161 ($2k/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 $414k (8.0% below list).
• It's been on market 30 days — a 2% lower offer ($443k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $414k (8.0% 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 83/100 on livability (#41 in WI, #936 nationally) — a professional / high-income tenant draw. Strengths: crime A+, housing A+, health & safety A+; Watch: commute C-, amenities F.
• Waukesha School District (urban): math 38% / reading 38% proficiency, ranked #163 of 342 in WI (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hadfield Elementary (math 12% / reading 17%, grade F, #910 of 1,041 statewide, top 88%, 366 students, 76% FRL); Les Paul Middle (math 34% / reading 42%, grade F, #166 of 383 statewide, top 44%, 582 students, 35% FRL); South High (math 16% / reading 27%, grade F, #362 of 483 statewide, top 75%, 890 students, 51% FRL) — zoned schools average 54% FRL vs 30% district-wide (24 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 25% at this address vs 38% district-wide (-13 pts) — the specific schools serving this property underperform the Waukesha School District average; the district grade overstates school quality for this exact location.
• Watch-outs: built in 1875 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+11.5%/yr); 38 active listings in the ZIP; 1,885 units permitted in Waukesha County in 2024 (696 in 5+ unit buildings).
• 5 sale attempts since 2y 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.
• Cap rate 6.7% vs local median 2.2% in Waukesha — 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.
• At $4,140/mo this rent would consume 67% of the median local household income ($75k/yr) (locally 1452% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1875 — 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 B-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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Major: landscaping — Overgrown vegetation needs trimming
• Major: fencing — No visible fencing
• Major: roof — No visible roof condition