821 N 8th St

Rochelle, IL 61068

$147,500C-

4 bd · 2.0 ba · 1,482 sqft · Built 1940 · SingleFamily · Pending · 91 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,545/mo
• Mortgage (P&I): −$774
• Tax + insurance: −$389
• HOA: −$0
• Vac / Maint / Mgmt: −$325
• Net cashflow: $58/mo
• Annual: $698/yr
• Cap rate: 6.77%
• Cash-on-cash: 1.69%
• DSCR: 1.08
• 1% rule: 1.05%
• Cash to close: $41,300

Investor read

• This is a 4-bed/2.0-bath single-family listed at $148k.
• At list price, monthly cash flow is $58 ($698/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $148k).
• It's been on market 91 days — a 9% lower offer ($134k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $134k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#588 in IL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F, employment D-.
• Rochelle Twp Hsd 212 (rural): math 25% / reading 25% proficiency, ranked #608 of 919 in IL (top 66%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Rochelle Middle School (math 12% / reading 24%, grade F, #444 of 665 statewide, top 67%, 474 students, 0% FRL); Rochelle Twp High School (math 22% / reading 22%, grade F, #319 of 693 statewide, top 50%, 863 students, 0% FRL).
• Watch-outs: property tax is 2.7% of price; built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 45 active listings in the ZIP; 113 units permitted in Ogle County in 2024 (67 in 5+ unit buildings).
• Ogle County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $127k; 16% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Questions for listing agent

• It's been on market 91 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• 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.