Ballenger with Finished Basement Plan

Sugar Grove, IL 60554

$489,990F

4 bd · 2.5 ba · 2,737 sqft · Built — · SingleFamily · Active · 116 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,700/mo
• Mortgage (P&I): −$2,717
• Tax + insurance: −$864
• HOA: −$0
• Vac / Maint / Mgmt: −$777
• Net cashflow: $-658/mo
• Annual: $-7,895/yr
• Cap rate: 4.77%
• Cash-on-cash: -5.44%
• DSCR: 0.76
• 1% rule: 0.71%
• Cash to close: $145,086

Investor read

• This is a 4-bed/2.5-bath single-family listed at $490k. Condition is rated excellent.
• At list price, monthly cash flow is $-658 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $423k (13.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $370k (24.5% below list).
• It's been on market 116 days — a 9% lower offer ($446k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $370k (24.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k 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; 3 comparable units currently listed for rent nearby; rentals lingering (median 66d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• Cap rate 4.8% vs local median 3.5% in Sugar Grove — 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.
• This rent runs 38% of the median local income ($116k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 116 days. Have you received any prior offers? Is the seller open to a 24% 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.