8 E Railroad St

Sandwich, IL 60548

$925,000F

None bd · None ba · 24,000 sqft · Built 1898 · Condo · Active · 145 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $0/mo
• Mortgage (P&I): −$4,851
• Tax + insurance: −$1,542
• HOA: −$0
• Vac / Maint / Mgmt: −$0
• Net cashflow: $-6,392/mo
• Annual: $-76,710/yr
• Cap rate: -2.00%
• Cash-on-cash: -29.62%
• DSCR: -0.32
• 1% rule: 0.00%
• Cash to close: $259,000

Investor read

• This is a condo listed at $925k.
• At list price, monthly cash flow is $-6k ($-77k/yr) — negative.
• Rent doesn't cover operating costs at any purchase price — skip.
• It's been on market 145 days — a 12% lower offer ($814k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $814k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $28k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#101 in IL, #1,612 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, cost of living A+; Watch: schools C-, amenities F, commute F.
• Sandwich CUSD 430 (suburban): math 25% / reading 32% proficiency, ranked #246 of 620 in IL (top 40%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1898 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 70 active listings in the ZIP; 260 units permitted in DeKalb County in 2024 (73 in 5+ unit buildings).
• DeKalb County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 19y ago; this cycle's ask has dropped $75k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate -2.0% vs local median 3.2% in Sandwich — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 145 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1898 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.