MCKINLEY Plan

Pingree Grove, IL 60140

$318,990D-

2 bd · 2.5 ba · 1,579 sqft · Built — · Townhouse · Active · 632 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,652/mo
• Mortgage (P&I): −$1,780
• Tax + insurance: −$566
• HOA: −$0
• Vac / Maint / Mgmt: −$557
• Net cashflow: $-251/mo
• Annual: $-3,016/yr
• Cap rate: 5.40%
• Cash-on-cash: -3.17%
• DSCR: 0.86
• 1% rule: 0.78%
• Cash to close: $95,057

Investor read

• This is a 2-bed/2.5-bath townhouse listed at $319k. Condition is rated good.
• At list price, monthly cash flow is $-251 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $303k (5.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $265k (16.9% below list).
• It's been on market 632 days — a 12% lower offer ($281k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $265k (16.9% 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 $10k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#694 in IL) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: cost of living C-, amenities F, commute F.
• CUSD 300 (suburban): math 24% / reading 27% proficiency, ranked #261 of 620 in IL (top 42%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Gilberts Elem Sch (math 34% / reading 31%, grade F, #582 of 2,056 statewide, top 28%, 707 students, 0% FRL); Hampshire Middle School (math 23% / reading 21%, grade F, #389 of 665 statewide, top 60%, 795 students, 0% FRL); Hampshire High School (math 30% / reading 35%, grade F, #152 of 693 statewide, top 22%, 1,938 students, 0% FRL) — zoned schools average 0% FRL vs 37% district-wide (37 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 287 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals lingering (median 32d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 60% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• Cap rate 5.4% vs local median 4.5% in Pingree Grove — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 632 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• 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 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.