209 N Reader St

Mounds, IL 62964

$68,250C+

3 bd · 2.0 ba · 1,923 sqft · Built 1952 · SingleFamily · Pending · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,220/mo
• Mortgage (P&I): −$358
• Tax + insurance: −$143
• HOA: −$0
• Vac / Maint / Mgmt: −$256
• Net cashflow: $463/mo
• Annual: $5,560/yr
• Cap rate: 14.44%
• Cash-on-cash: 29.09%
• DSCR: 2.29
• 1% rule: 1.79%
• Cash to close: $19,110

Investor read

• This is a 3-bed/2.0-bath single-family listed at $68k.
• At list price, monthly cash flow is $463 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $68k).
• It's been on market 38 days — a 3% lower offer ($66k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $66k (3.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($472 loan paydown + $2k appreciation (3.0% local appreciation)).
• Location reads 51/100 on livability (#1,326 in IL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: amenities F, commute F, employment F.
• Meridian CUSD 101 (rural): math 2% / reading 2% proficiency, ranked #618 of 620 in IL (top 100%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 86% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Meridian Elementary School (math 2% / reading 2%, grade F, #1,927 of 2,056 statewide, top 100%, 236 students, 0% FRL); Meridian High School (math 5% / reading 5%, grade F, #614 of 693 statewide, top 95%, 224 students, 0% FRL) — zoned schools average 0% FRL vs 86% district-wide (86 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 6 active listings in the ZIP.
• Pulaski County population projected at -38% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 38 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1952 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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 for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.