3847 Euclid Ave

Berwyn, IL 60402

$520,000B-

10 bd · 5.5 ba · 5,013 sqft · Built 1948 · MultiFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,310/mo
• Mortgage (P&I): −$2,727
• Tax + insurance: −$1,617
• HOA: −$0
• Vac / Maint / Mgmt: −$2,165
• Net cashflow: $3,801/mo
• Annual: $45,614/yr
• Cap rate: 15.06%
• Cash-on-cash: 31.33%
• DSCR: 2.39
• 1% rule: 1.98%
• Cash to close: $145,600

Investor read

• This is a 5 × 6-bed/4.0-bath units multifamily listed at $520k.
• At list price, monthly cash flow is $4k ($46k/yr) — positive. Per door: $760/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $520k).
• It's been on market 21 days — a 2% lower offer ($512k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $512k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#46 in IL, #966 nationally) — a professional / high-income tenant draw. Strengths: commute A+, housing A+, crime A.
• J S Morton Hsd 201 (suburban): math 9% / reading 14% proficiency, ranked #557 of 620 in IL (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Irving Elem School (math 17% / reading 17%, grade F, #1,141 of 2,056 statewide, top 59%, 435 students, 0% FRL); Heritage Middle School (math 20% / reading 24%, grade F, #389 of 665 statewide, top 60%, 490 students, 0% FRL); J Sterling Morton West High Sch (math 11% / reading 17%, grade F, #495 of 693 statewide, top 72%, 3,533 students, 0% FRL).
• Watch-outs: property tax is 3.2% of price; built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+4.6%/yr); 127 active listings in the ZIP; solid renter incomes; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• 17 sale attempts since 15y 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 $347k; 50% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 4.6% rent growth), your $146k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 15.1% vs local median 3.1% in Berwyn — 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 $10,310/mo this rent would consume 159% of the median local household income ($78k/yr) (locally 1998% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1948 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-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.