844 Village Quarter Rd Unit B5

West Dundee, IL 60118

$173,500D

2 bd · 1.0 ba · 845 sqft · Built 1969 · Condo · Active · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,936/mo
• Mortgage (P&I): −$910
• Tax + insurance: −$221
• HOA: −$384
• Vac / Maint / Mgmt: −$407
• Net cashflow: $14/mo
• Annual: $174/yr
• Cap rate: 6.39%
• Cash-on-cash: 0.36%
• DSCR: 1.02
• 1% rule: 1.12%
• Cash to close: $48,580

Investor read

• This is a 2-bed/1.0-bath condo listed at $174k.
• At list price, monthly cash flow is $14 ($174/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $174k).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#18 in IL, #391 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, employment A+, housing A+; Watch: cost of living C-, commute D.
• CUSD 300 (suburban): math 24% / reading 27% proficiency, ranked #261 of 620 in IL (top 42%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Dundee Highlands Elem School (math 27% / reading 37%, grade F, #586 of 2,056 statewide, top 31%, 385 students, 0% FRL); Dundee Middle School (math 27% / reading 35%, grade F, #233 of 665 statewide, top 36%, 1,129 students, 0% FRL); Dundee-Crown High School (math 20% / reading 21%, grade F, #350 of 693 statewide, top 51%, 2,636 students, 0% FRL) — zoned schools average 0% FRL vs 37% district-wide (37 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents soft (-2.0%/yr); 58 active listings in the ZIP; 16 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• Current owner paid $70k; list at $174k implies a 150% gain — meaningful room to come down on a strong offer.
• Cap rate 6.4% vs local median 4.1% in West Dundee — 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

• Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.