3 bd · 1.0 ba ·
1,165 sqft ·
Built 1946
· SingleFamily
· Active
· 18 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$1,600/mo
Mortgage (P&I)
−$519
Tax + insurance
−$165
HOA
−$0
Vac / Maint / Mgmt
−$336
Net cashflow
$580/mo
Annual
$6,957/yr
Cap rate
13.32%
Cash-on-cash
25.10%
DSCR
2.12
1% rule
1.62%
Cash to close
$27,720
Investor read
This is a 3-bed/1.0-bath single-family listed at $99k.
At list price, monthly cash flow is $580 ($7k/yr) — positive.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($2k rent vs $99k).
It's been on market 18 days — a 2% lower offer ($98k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $98k (1.5% below list) — sets the bar for market timing.
Local home prices are declining (-3.0%/yr); year-one equity from $684 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
Location reads 69/100 on livability (#434 in IL) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A-; Watch: health & safety C-, crime F, amenities F.
Thornton Twp Hsd 205 (suburban): math 7% / reading 8% proficiency, ranked #594 of 620 in IL (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
Zoned schools: Washington Elem School (277 students, 0% FRL); Washington Junior High (math 24% / reading 24%, grade F, #332 of 665 statewide, top 55%, 131 students, 0% FRL); Thornton Township High School (math 7% / reading 7%, grade F, #605 of 693 statewide, top 87%, 1,628 students, 0% FRL).
Watch-outs: built in 1946 — expect roof / HVAC / electrical / plumbing capex.
Market conditions: Rents rising fast (+7.8%/yr); 77 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); lower-income renter base — watch delinquency; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
2 sale attempts 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.
At projected returns (-3.0% appreciation + 7.8% rent growth), your $28k cash investment doubles in ~5 years — after that, you're playing with house money.
Cap rate 13.3% vs local median 9.5% in Riverdale — 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 $1,600/mo this rent would consume 52% of the median local household income ($37k/yr) (locally 1868% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.
Questions for listing agent
Built in 1946 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
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.
CashFlowRE · CFR-2B1Z91AN7ZGNBM
· Data 3 weeks agocashflowre.app · 2026-05-29