6520 W Gunnison St

Harwood Heights, IL 60706

$889,900D

9 bd · 4.5 ba · 4,646 sqft · Built 1985 · MultiFamily · Active · 376 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,014/mo
• Mortgage (P&I): −$4,667
• Tax + insurance: −$1,584
• HOA: −$0
• Vac / Maint / Mgmt: −$1,683
• Net cashflow: $80/mo
• Annual: $962/yr
• Cap rate: 6.40%
• Cash-on-cash: 0.39%
• DSCR: 1.02
• 1% rule: 0.90%
• Cash to close: $249,172

Investor read

• This is a 3 × 3-bed/1.5-bath units multifamily listed at $890k.
• At list price, monthly cash flow is $80 ($962/yr) — positive. Per door: $27/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $801k (9.9% below list).
• It's been on market 376 days — a 12% lower offer ($783k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $783k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $27k of value loss. Plan a longer hold.
• Location reads 87/100 on livability (#13 in IL, #302 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+.
• Ridgewood Chsd 234 (suburban): math 18% / reading 30% proficiency, ranked #314 of 620 in IL (top 51%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Ridgewood Comm High School (math 18% / reading 30%, grade F, #304 of 693 statewide, top 44%, 873 students, 0% FRL).
• Market conditions: 42 active listings in the ZIP; solid renter incomes; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• 7 sale attempts since 5y 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 $310k; list at $890k implies a 187% gain — meaningful room to come down on a strong offer.
• Cap rate 6.4% vs local median 3.8% in Harwood Heights — 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.
• At $8,014/mo this rent would consume 114% of the median local household income ($85k/yr) (locally 561% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 376 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.