1166 Mariemont Rd

Sugar Grove, IL 60554

$489,990F

4 bd · 2.5 ba · 3,327 sqft · Built 2026 · SingleFamily · Active · 189 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,464/mo
• Mortgage (P&I): −$2,570
• Tax + insurance: −$817
• HOA: −$0
• Vac / Maint / Mgmt: −$517
• Net cashflow: $-1,440/mo
• Annual: $-17,276/yr
• Cap rate: 2.77%
• Cash-on-cash: -12.59%
• DSCR: 0.44
• 1% rule: 0.50%
• Cash to close: $137,197

Investor read

• This is a 4-bed/2.5-bath single-family listed at $490k. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• To cash-flow at today's rent, offer at most $282k (42.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $246k (49.7% below list).
• It's been on market 189 days — a 12% lower offer ($431k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $246k (49.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#157 in IL, #2,930 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: cost of living C-, amenities F, commute F.
• Kaneland CUSD 302 (rural): math 33% / reading 42% proficiency, ranked #122 of 620 in IL (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Kaneland Mcdole Elem School (419 students, 0% FRL); Kaneland Harter Middle School (math 24% / reading 24%, grade F, #332 of 665 statewide, top 55%, 894 students, 0% FRL); Kaneland Senior High School (math 34% / reading 43%, grade F, #100 of 693 statewide, top 15%, 1,309 students, 0% FRL).
• Market conditions: 148 active listings in the ZIP; high-income renter base; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• Cap rate 2.8% vs local median 3.5% in Sugar Grove — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 189 days. Have you received any prior offers? Is the seller open to a 50% concession, seller financing, or rate buy-down credit?
• 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.
• 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.