9168 South Rd Unit A

Palos Hills, IL 60465

$225,000D-

2 bd · 2.0 ba · 1,200 sqft · Built 1978 · Condo · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,235/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$371
• HOA: −$288
• Vac / Maint / Mgmt: −$469
• Net cashflow: $-73/mo
• Annual: $-882/yr
• Cap rate: 5.90%
• Cash-on-cash: -1.40%
• DSCR: 0.94
• 1% rule: 0.99%
• Cash to close: $63,000

Investor read

• This is a 2-bed/2.0-bath condo listed at $225k.
• At list price, monthly cash flow is $-73 ($-882/yr) — negative.
• To cash-flow at today's rent, offer at most $212k (5.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $223k (0.7% below list).
• It's been on market 30 days — a 2% lower offer ($222k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $212k (5.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#121 in IL, #2,109 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, commute A+, housing A+; Watch: amenities F, health & safety F.
• Cons Hsd 230 (suburban): math 35% / reading 39% proficiency, ranked #146 of 620 in IL (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Palos West Elementary School (math 49% / reading 56%, grade C-, #143 of 2,056 statewide, top 7%, 714 students, 0% FRL); Palos South Middle School (math 44% / reading 60%, grade C+, #41 of 665 statewide, top 6%, 701 students, 0% FRL); Amos Alonzo Stagg High School (math 30% / reading 35%, grade F, #152 of 693 statewide, top 22%, 2,538 students, 0% FRL).
• Market conditions: 56 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• Current owner paid $115k; list at $225k implies a 96% gain — meaningful room to come down on a strong offer.
• Cap rate 5.9% vs local median 4.2% in Palos Hills — 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.
• This rent runs 32% of the median local income ($84k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.