100 Luella Ave

Calumet City, IL 60409

$349,900B-

8 bd · 4.5 ba · 4,134 sqft · Built 1963 · MultiFamily · Pending · 374 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,019/mo
• Mortgage (P&I): −$1,835
• Tax + insurance: −$1,395
• HOA: −$0
• Vac / Maint / Mgmt: −$1,264
• Net cashflow: $1,525/mo
• Annual: $18,305/yr
• Cap rate: 11.52%
• Cash-on-cash: 18.68%
• DSCR: 1.83
• 1% rule: 1.72%
• Cash to close: $97,972

Investor read

• This is a 3 × 3-bed/1.5-bath units multifamily listed at $350k.
• At list price, monthly cash flow is $2k ($18k/yr) — positive. Per door: $508/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $350k).
• It's been on market 374 days — a 12% lower offer ($308k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $308k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#330 in IL) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: employment C-, crime D-, amenities F.
• Thornton Twp Hsd 205 (suburban): math 7% / reading 8% proficiency, ranked #594 of 620 in IL (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Caroline Sibley Elem School (math 0% / reading 5%, grade F, #1,923 of 2,056 statewide, top 94%, 518 students, 0% FRL); Creative Communications Acad (math 2% / reading 2%, grade F, #660 of 665 statewide, top 100%, 177 students, 0% FRL); Thornridge High School (math 8% / reading 8%, grade F, #589 of 693 statewide, top 86%, 1,057 students, 0% FRL).
• Watch-outs: property tax is 4.3% of price.
• Market conditions: Rents rising fast (+6.2%/yr); 195 active listings in the ZIP; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• 15 sale attempts since 19y ago; this cycle's ask has dropped $30k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $121k; list at $350k implies a 189% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 6.2% rent growth), your $98k cash investment doubles in ~6 years — after that, you're playing with house money.
• Cap rate 11.5% vs local median 8.2% in Calumet City — 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 $6,019/mo this rent would consume 130% of the median local household income ($55k/yr) (locally 2415% 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 374 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?
• Built in 1963 — 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?