2547 N 4645th Rd Unit B

Lake Holiday, IL 60552

$229,000D

2 bd · 1.0 ba · 1,000 sqft · Built 1995 · Condo · Active · 81 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,018/mo
• Mortgage (P&I): −$1,201
• Tax + insurance: −$382
• HOA: −$0
• Vac / Maint / Mgmt: −$424
• Net cashflow: $12/mo
• Annual: $144/yr
• Cap rate: 6.36%
• Cash-on-cash: 0.22%
• DSCR: 1.01
• 1% rule: 0.88%
• Cash to close: $64,120

Investor read

• This is a 2-bed/1.0-bath condo listed at $229k. Condition is rated good.
• At list price, monthly cash flow is $12 ($144/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $202k (11.9% below list).
• It's been on market 81 days — a 6% lower offer ($215k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $202k (11.9% below list) — sets the bar for 1% rule.
• 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 64/100 on livability (#730 in IL) — a middle-class / working-renter tenant base. Strengths: housing A+, employment A-, cost of living B+; Watch: health & safety C-, amenities F, commute F.
• Somonauk CUSD 432 (town): math 33% / reading 46% proficiency, ranked #133 of 620 in IL (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: James R Wood Elem School (math 17% / reading 32%, grade F, #850 of 2,056 statewide, top 45%, 279 students, 0% FRL); Somonauk Middle School (math 47% / reading 62%, grade B-, #35 of 665 statewide, top 5%, 233 students, 0% FRL); Somonauk High School (math 22% / reading 27%, grade F, #256 of 693 statewide, top 44%, 238 students, 0% FRL) — zoned schools average 0% FRL vs 20% district-wide (20 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 15 active listings in the ZIP; 82 units permitted in LaSalle County in 2024 (0 in 5+ unit buildings).
• LaSalle County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Cap rate 6.4% vs local median 2.3% in Lake Holiday — 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.

Questions for listing agent

• It's been on market 81 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.