854 Dane Street – Buy a Home With Rental Income

Turnkey 2-unit home generating $2,990/month in rent with a brand-new roof & gutters, in one of Madison’s most resource-rich neighborhoods. Live in one unit and let the other help pay your mortgage.

Price: $550,000 (FSBO) $35,880/yr Gross Rent New Roof + Gutters
📞 Call the Owner 💬 Text for Info

Bilingual owner – English & Spanish.

Front view of 854 Dane Street, Madison WI
2-Unit Property Income Producing Walkable Neighborhood

Property Overview – 854 Dane Street, Madison WI

854 Dane Street is a well-maintained two-unit home in a central, high-demand neighborhood. Both units are currently rented, providing immediate cash flow for a new owner.

Key Details

  • List Price: $550,000 (For Sale by Owner)
  • Configuration: 2 separate rental units
  • Current Rent: $1,650 + $640 + $700 = $2,990/month
  • Annual Gross Rent: $35,880
  • Condition: Well-kept, move-in ready
  • Recent Upgrades: Brand-new roof and gutters
  • Outdoor Space: Yard and outdoor area

Who This Home Is Perfect For

  • First-time buyers who want to live in one unit and rent the other
  • House-hackers looking to reduce or offset their housing costs
  • Small investors building a long-term rental portfolio in Madison

Photo Gallery

Living room of 854 Dane Street Living Room
Dining and kitchen area of 854 Dane Street Dining / Kitchen
Front exterior of 854 Dane Street Front Exterior

Numbers That Make Sense – Cash Flow & Metrics

854 Dane Street is more than a home – it’s a stabilized, income-producing asset in a low-vacancy area. Here are simple, transparent numbers to help you evaluate the opportunity.

Rental Income

  • Unit 1 Rent: $1,650/month
  • Room A (Unit 2): $640/month
  • Room B (Unit 2): $700/month
  • Total: $2,990/month
  • Annual Gross: $35,880/year

Estimated NOI & Cap Rate

Using a conservative 30% expense estimate:

  • Est. Expenses (30%): ≈ $10,764/year
  • Est. NOI: ≈ $25,116/year
  • Cap Rate @ $550K: ≈ 4.56%

With a strong rental market, low vacancy, and a new roof, this cap rate reflects stable performance and long-term upside.

GRM & Strategy

  • GRM: 550,000 ÷ 35,880 ≈ 15.33
  • Hold Strategy: Long-term rental or house-hack
  • Risk Profile: Low vacancy, strong tenant pool

Ideal for buyers seeking strong cash flow, community, and future equity growth.

House-Hack Scenario – Live for Less

  • Live in one unit and keep the other rented to offset your mortgage
  • Build equity in a central Madison location instead of paying rent
  • Enjoy walkability, transit, and community resources minutes from your door

Location, Community & Lifestyle

854 Dane Street sits in one of Madison’s most connected and resource-rich areas, especially for working professionals, families, and the Latino community.

Walkable Community Resources

  • Centro Hispano: Nearby – immigration, family, and youth support
  • South Public Library: Short walk for families and students
  • Access Community Health / Clinics: Nearby medical services
  • Urban League & YWCA: Job, housing, and family programs
  • Grocery & Restaurants: Local markets and Mexican restaurants close by
  • Transit: Bus stop within ~100 meters; South Transfer Point around 9 blocks

Lifestyle & Recreation

  • Small park, basketball court, and soccer field behind the house
  • Quick drive to Henry Vilas Zoo
  • Short ride to UW–Madison and the State Capitol
  • Easy access to the Beltline for trips to East Towne, West Towne, Milwaukee, and Chicago

Approximate Location

Exact location and showing times will be shared with serious, pre-qualified buyers.

Contact the Owner Directly

Serious and pre-qualified buyers are welcome to call, text, or send a message using the form below.

Call or Text

You can reach the owner directly at:

Bilingual – English & Spanish. Please mention you are inquiring about 854 Dane Street.