7121 Country Club Hills Dr

Fox Lake, IL 60020

$260,000B-

2 bd · 2.0 ba · 1,090 sqft · Built 2019 · SingleFamily · Contingent - No Showings · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,773/mo
• Mortgage (P&I): −$1,363
• Tax + insurance: −$405
• HOA: −$198
• Vac / Maint / Mgmt: −$1,422
• Net cashflow: $3,385/mo
• Annual: $40,618/yr
• Cap rate: 21.92%
• Cash-on-cash: 55.79%
• DSCR: 3.48
• 1% rule: 2.61%
• Cash to close: $72,800

Investor read

• This is a 2-bed/2.0-bath single-family listed at $260k.
• At list price, monthly cash flow is $3k ($41k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($7k rent vs $260k).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#247 in IL, #4,462 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, commute A; Watch: amenities D+, health & safety F.
• Richmond-Burton Chsd 157 (rural): math 45% / reading 50% proficiency, ranked #161 of 919 in IL (top 18%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Spring Grove Elementary School (math 22% / reading 37%, grade F, #658 of 2,056 statewide, top 35%, 308 students, 0% FRL); Nippersink Middle School (math 30% / reading 51%, grade F, #136 of 665 statewide, top 21%, 385 students, 0% FRL); Richmond-Burton High School (math 37% / reading 37%, grade F, #107 of 693 statewide, top 17%, 549 students, 0% FRL).
• Market conditions: 75 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,595 units permitted in McHenry County in 2024 (485 in 5+ unit buildings).
• McHenry County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 11y 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 $165k; list at $260k implies a 58% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $73k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 21.9% vs local median 6.0% in Fox Lake — 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

• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.