131 S 7th St

DeKalb, IL 60115

$325,000F

6 bd · 4.0 ba · — sqft · Built 1905 · Other · Active · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,077/mo
• Mortgage (P&I): −$1,704
• Tax + insurance: −$655
• HOA: −$0
• Vac / Maint / Mgmt: −$436
• Net cashflow: $-718/mo
• Annual: $-8,620/yr
• Cap rate: 3.64%
• Cash-on-cash: -9.47%
• DSCR: 0.58
• 1% rule: 0.64%
• Cash to close: $91,000

Investor read

• This is a 6-bed/4.0-bath other listed at $325k.
• At list price, monthly cash flow is $-718 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $198k (39.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $208k (36.1% below list).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $198k (39.0% 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 $10k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#154 in IL, #2,835 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: amenities D+, crime D-, employment F.
• Dekalb CUSD 428 (suburban): math 11% / reading 16% proficiency, ranked #541 of 620 in IL (top 87%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Founders Elementary School (math 8% / reading 8%, grade F, #1,627 of 2,056 statewide, top 81%, 556 students, 0% FRL); Huntley Middle School (math 12% / reading 16%, grade F, #529 of 665 statewide, top 80%, 934 students, 0% FRL); Dekalb High School (math 18% / reading 28%, grade F, #312 of 693 statewide, top 46%, 2,083 students, 0% FRL) — zoned schools average 0% FRL vs 48% district-wide (48 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1905 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+7.3%/yr); 85 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 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.
• Current owner paid $135k; list at $325k implies a 141% gain — meaningful room to come down on a strong offer.
• At $2,077/mo this rent would consume 53% of the median local household income ($47k/yr) (locally 3794% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 1905 — 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 D-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 D 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?
• 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.