1218 S State Ave · Freeport, IL 61032

$125,000

3 bd · 1.5 ba · 1,512 sqft · Other · 235 Days on market

Built 1917 3,332 sqft lot $83/sqft · 94% above area

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Why this score? — see what drove the C- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +21.0/30.0
• ARV discount +7.5/15.0
• DSCR +6.7/10.0
• 1% rule +5.5/10.0
• Livability +3.6/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +1.0/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

2 Story home with updates and upgrades. 3 bedrooms,1 bathroom on the upper level. Main level has living room, dining room and kitchen. Basement has a half bath, rec room, laundry area. There is a enclosed front porch and a deck on the rear.

Key facts

• Laundry area
• Rec room
• Deck on the rear

Tags

• ENCLOSED FRONT PORCH
• DECK ON THE REAR
• REC ROOM
• LAUNDRY AREA

What this means for you Summary

Snapshot

• This is a 3-bed/1.5-bath other listed at $125k.

Deal economics

• At list price, monthly cash flow is $176 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $125k).
• Recommended offer: $110k (12.0% below list) — sets the bar for market timing.
• Cap rate 8.0% vs local median 5.8% in Freeport — 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.

Location & tenants

• Location reads 72/100 on livability (#302 in IL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: schools F, commute F, employment F.
• Freeport SD 145 (town): math 11% / reading 12% proficiency, ranked #565 of 620 in IL (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 65% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 205 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 7 units permitted in Stephenson County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Stephenson County population projected at -29% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 235 days — a 12% lower offer ($110k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 2y ago 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 $14k; list at $125k implies a 793% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1917 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $110,000 (12.0% below list)

Questions for the listing agent

1. It's been on market 235 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1917 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 1.05% ✓
• Cap rate: 7.98%
• Cash-on-cash: 6.03%
• DSCR: 1.27
• GRM: 7.9

CMA / ARV

• ARV (median comp): $64,594
• List price: $125,000
• Delta: 93.52%
• Verdict: OVERPRICED
• Comps: 20 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -7.0%
• Equity multiple: 0.74×
• Total profit: $-9,038
• Equity at exit: $18,638

10-year hold

• IRR: 2.6%
• Equity multiple: 1.19×
• Total profit: $6,626
• Equity at exit: $10,808

Cash invested: $35,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 43 Moderately Tenant-Leaning
• State Illinois: 43 Moderately Tenant-Leaning · D+7
• County: — inherits STATE
• City: — inherits STATE

Chicago RTLO is among the strongest tenant ordinances in the Midwest; downstate is more landlord-friendly.

Methodology + full state rankings →

ZIP-level market 61032

• Home prices YoY: -19.5%
• Active inventory: 205
• Price-to-rent: 7.9×

Monthly cashflow live

• Estimated rent: $1,313 high
• Mortgage (P&I): −$656
• Tax from tax record: −$154 /mo · $1,848/yr
• Insurance: −$52
• HOA: −$0
• Vacancy / Maint / Mgmt: −$276
• Net cashflow: $176

Break-even live

Break-even rent $1,091

Max offer price $125,000

Occupancy floor 82%

Sensitivity live

Price	-10% $247	-5% $211	+0% $176	+5% $140	+10% $105
Rent	-10% $72	-5% $124	+0% $176	+5% $228	+10% $280
Rate	-1.0pp $239	-0.5pp $208	base $176	+0.5pp $143	+1.0pp $110

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $31,250
• Closing costs: $3,750
• Reserves months: —
• Total cash needed: —

Rent comps 5 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
816 S James Ave Freeport, IL	3.0	1.0	1152	$1,325	$1.15	44d	1	0.33mi
742 W Homer St Freeport, IL	3.0	1.0	1434	$1,325	$0.92	44d	1	0.78mi
320 W Clark St Freeport, IL	4.0	1.0	1509	$1,395	$0.92	44d	1	0.91mi
435 N Apple Ave Freeport, IL	4.0	2.0	1500	$1,450	$0.97	44d	1	1.03mi
837 W Stephenson St Freeport, IL	2.0	1.0	1330	$1,000	$0.75	44d	1	1.05mi

Listing history 26 events

1. 2026-06-21
   days on market $125,000 Active 235 DOM
2. 2026-06-18
   days on market $125,000 Active 233 DOM
3. 2026-06-17
   days on market $125,000 Active 232 DOM
4. 2026-06-16
   days on market $125,000 Active 231 DOM
5. 2026-06-15
   days on market $125,000 Active 230 DOM
6. 2026-06-13
   days on market $125,000 Active 228 DOM
7. 2026-06-12
   days on market $125,000 Active 227 DOM
8. 2026-06-09
   days on market $125,000 Active 224 DOM
9. 2026-06-08
   days on market $125,000 Active 223 DOM
10. 2026-06-07
    days on market $125,000 Active 222 DOM
11. 2026-06-07
    days on market $125,000 Active 221 DOM
12. 2026-06-04
    days on market $125,000 Active 218 DOM
13. 2026-06-02
    days on market $125,000 Active 217 DOM
14. 2026-06-01
    days on market $125,000 Active 216 DOM
15. 2026-05-31
    days on market $125,000 Active 215 DOM
16. 2026-05-31
    days on market $125,000 Active 214 DOM
17. 2025-10-28
    listed $125,000 Active 240-char remark

    Show marketing remark (240 chars)

    2 Story home with updates and upgrades. 3 bedrooms,1 bathroom on the upper level. Main level has living room, dining room and kitchen. Basement has a half bath, rec room, laundry area. There is a enclosed front porch and a deck on the rear.

18. 2024-12-02
    soldstatus $14,000 Closed 240-char remark

    Show marketing remark (240 chars)

    Great opportunity on this two-story home with detached 1 car garage. It offers approximately 1,512 square feet of living space with 3 bedrooms and 1.1 bathrooms. Basement. Built in 1917 repairs and many updates are needed but has potential.

19. 2024-11-05
    status Pending 240-char remark

    Show marketing remark (240 chars)

    Great opportunity on this two-story home with detached 1 car garage. It offers approximately 1,512 square feet of living space with 3 bedrooms and 1.1 bathrooms. Basement. Built in 1917 repairs and many updates are needed but has potential.

20. 2024-10-15
    price $17,200 240-char remark

    Show marketing remark (240 chars)

    Great opportunity on this two-story home with detached 1 car garage. It offers approximately 1,512 square feet of living space with 3 bedrooms and 1.1 bathrooms. Basement. Built in 1917 repairs and many updates are needed but has potential.

21. 2024-09-26
    price $19,200 240-char remark

    Show marketing remark (240 chars)

    Great opportunity on this two-story home with detached 1 car garage. It offers approximately 1,512 square feet of living space with 3 bedrooms and 1.1 bathrooms. Basement. Built in 1917 repairs and many updates are needed but has potential.

22. 2024-09-11
    price $22,000 240-char remark

    Show marketing remark (240 chars)

    Great opportunity on this two-story home with detached 1 car garage. It offers approximately 1,512 square feet of living space with 3 bedrooms and 1.1 bathrooms. Basement. Built in 1917 repairs and many updates are needed but has potential.

23. 2024-08-27
    listed $26,500 Active 240-char remark

    Show marketing remark (240 chars)

    Great opportunity on this two-story home with detached 1 car garage. It offers approximately 1,512 square feet of living space with 3 bedrooms and 1.1 bathrooms. Basement. Built in 1917 repairs and many updates are needed but has potential.

24. 2024-06-24
    historical
25. 2024-06-14
    price
26. 2024-05-30
    listed Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IL · Partial reset (capped growth)

• Current annual tax: $1,848 · $154/mo
• Projected year-2 tax: $2,343 · $195/mo
• Expected delta: +$495/yr (+$41/mo · 26.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥101°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $15,758
• − Mortgage interest: −$7,002
• − Property taxes: −$1,848
• − Insurance: −$625
• − Repairs & maintenance: −$1,261
• − Management: −$1,261
• − Depreciation: −$3,636
• Taxable income: $126
• Est. tax owed @ 24.0%: −$30
• After-tax cash flow: $2,080/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Freeport SD 145
• NCES district ID: 1715900
• Math proficiency: 11% ▼ -3.00%
• Reading proficiency: 12% ▼ -5.00%
• Median HH income: $39,803
• Composite: 9.89/100
• National rank: #9821
• State rank: #565 of 620 in IL

Livability — Freeport

• Score: 72/100
• State rank: #302
• US rank: #5927

Category grades

Amenities C Commute F Cost of living A+ Crime C Employment F Housing A- Health & safety A+ User ratings B

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Freeport, IL
• Population (ZIP): 29,072

Population outlook (Stephenson County) Hauer SSP2

• Today (2025): 41,802 people
• By 2030: 39,487 · -5.5%
• By 2040: 34,534 · -17.4%
• By 2050: 29,693 · -29.0%
• By 2075: 21,196 · -49.3%
• By 2100: 14,596 · -65.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (73%)
• Race & ethnicity: White 73% Black 12% Two or more races 10% Hispanic / Latino 6% Asian 1%
• Hispanic origin (detail): Mexican 4% Puerto Rican 1%
• Common ancestry: Iranian 3% Romanian 2% Lithuanian 2%
• Foreign-born: 3% · Canada
• Languages at home: 96% English-only · Spanish 3% Other Indo-European 1%

Political lean MEDSL · Stephenson

• 2024 margin: R (+19.4) · D 39.5% · R 58.9% · Other 1.6%
• 2008→2024 swing: -26.1pp toward R · 2008: 6.7pp · 2024: -19.4pp
• All cycles: 2024: R+19.4 2020: R+15.7 2016: R+17.0 2012: R+4.6 2008: D+6.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -39.75%
• Current HPI: 163.677
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 1.59%
• F500 in state: 60

Industry mix (Fortune 500 HQ in IL)

Industry	F500 HQs	Revenue
▸Insurance	4	$201B
▸Consumer Goods	4	$87B
▸Industrial Machinery	3	$64B
▸Healthcare	2	$55B
▸Retail / Pharmacy	1	$148B
▸Agriculture / Food	1	$86B

Price history

+371.7% since first listed

10 events — show timeline

• 2025-10-28 Listed $125,000 MRED as Distributed by MLS Grid
• 2024-12-02 Sold (MLS) $14,000 MRED as Distributed by MLS Grid
• 2024-11-05 Pending — MRED as Distributed by MLS Grid
• 2024-10-15 Price Changed $17,200 MRED as Distributed by MLS Grid
• 2024-09-26 Price Changed $19,200 MRED as Distributed by MLS Grid
• 2024-09-11 Price Changed $22,000 MRED as Distributed by MLS Grid
• 2024-08-27 Listed $26,500 MRED as Distributed by MLS Grid
• 2024-06-24 Listing Removed — MRED as Distributed by MLS Grid
• 2024-06-14 Price Changed — MRED as Distributed by MLS Grid
• 2024-05-30 Listed — MRED as Distributed by MLS Grid

Property tax history

+17.3%/yr

Latest (2024): $1,848 · +1.5% YoY. Source: county tax records.