Harrison Plan

Huntley, IL 60142

$324,990C+

3 bd · 1.5 ba · 1,406 sqft · Built — · Townhouse · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,810/mo
• Mortgage (P&I): −$1,231
• Tax + insurance: −$391
• HOA: −$0
• Vac / Maint / Mgmt: −$590
• Net cashflow: $597/mo
• Annual: $7,164/yr
• Cap rate: 9.34%
• Cash-on-cash: 10.90%
• DSCR: 1.48
• 1% rule: 1.20%
• Cash to close: $65,745

Investor read

• This is a 3-bed/1.5-bath townhouse listed at $325k. Condition is rated excellent.
• At list price, monthly cash flow is $597 ($7k/yr) — positive.
• To cash-flow at today's rent, offer at most $321k (1.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $281k (13.5% below list).
• It's been on market 16 days — a 2% lower offer ($320k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $281k (13.5% 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 $7k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#235 in IL, #4,300 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F.
• Huntley Community School District 158 (suburban): math 37% / reading 42% proficiency, ranked #116 of 620 in IL (top 19%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 10% free/reduced lunch — higher-income household profile.
• Market conditions: 192 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $66k cash investment doubles in ~10 years — after that, you're playing with house money.
• Cap rate 9.3% vs local median 4.0% in Huntley — 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.
• This rent runs 38% of the median local income ($90k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.