704 E Lincoln St

Monticello, IL 61856

$159,900C

2 bd · 1.0 ba · 1,020 sqft · Built 1919 · SingleFamily · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,650/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$238
• HOA: −$0
• Vac / Maint / Mgmt: −$346
• Net cashflow: $227/mo
• Annual: $2,720/yr
• Cap rate: 7.99%
• Cash-on-cash: 6.08%
• DSCR: 1.27
• 1% rule: 1.03%
• Cash to close: $44,772

Investor read

• This is a 2-bed/1.0-bath single-family listed at $160k.
• At list price, monthly cash flow is $227 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $160k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#69 in IL, #1,132 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, cost of living A+; Watch: amenities F, commute F.
• Monticello CUSD 25 (town): math 30% / reading 51% proficiency, ranked #123 of 620 in IL (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Monticello Middle School (math 25% / reading 56%, grade F, #136 of 665 statewide, top 21%, 379 students, 0% FRL); Monticello High School (math 32% / reading 42%, grade F, #107 of 693 statewide, top 17%, 476 students, 0% FRL) — zoned schools average 0% FRL vs 15% district-wide (15 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1919 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 47 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 34 units permitted in Piatt County in 2024 (0 in 5+ unit buildings).
• Piatt County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 19y ago 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 $136k; 18% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 8.0% vs local median 3.5% in Monticello — 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.

Questions for listing agent

• Built in 1919 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.