103 S 22nd St

Murphysboro, IL 62966

$125,000F

1 bd · 1.5 ba · 1,149 sqft · Built 1938 · SingleFamily · Active · 43 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $825/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$329
• HOA: −$0
• Vac / Maint / Mgmt: −$173
• Net cashflow: $-333/mo
• Annual: $-3,996/yr
• Cap rate: 3.10%
• Cash-on-cash: -11.42%
• DSCR: 0.49
• 1% rule: 0.66%
• Cash to close: $35,000

Investor read

• This is a 1-bed/1.5-bath single-family listed at $125k.
• At list price, monthly cash flow is $-333 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $67k (46.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $82k (34.0% below list).
• It's been on market 43 days — a 3% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $67k (46.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 54/100 on livability (#1,265 in IL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A-; Watch: crime D-, amenities F, commute F.
• Murphysboro CUSD 186 (town): math 9% / reading 10% proficiency, ranked #585 of 620 in IL (top 94%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Carruthers Elementary School (math 11% / reading 11%, grade F, #1,460 of 2,056 statewide, top 72%, 406 students, 0% FRL); Murphysboro Middle School (math 4% / reading 6%, grade F, #636 of 665 statewide, top 98%, 444 students, 0% FRL); Murphysboro High School (math 17% / reading 17%, grade F, #430 of 693 statewide, top 66%, 598 students, 0% FRL) — zoned schools average 0% FRL vs 62% district-wide (62 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: property tax is 2.7% of price; built in 1938 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 81 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 5 units permitted in Jackson County in 2024 (0 in 5+ unit buildings).
• 5 sale attempts 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 $92k; 36% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 3.1% vs local median 6.2% in Murphysboro — 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 43 days. Have you received any prior offers? Is the seller open to a 47% concession, seller financing, or rate buy-down credit?
• Built in 1938 — 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?
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?