GARFIELD Plan

Hampshire, IL 60140

$309,990D-

3 bd · 2.5 ba · 1,756 sqft · Built — · Townhouse · Active · 738 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,737/mo
• Mortgage (P&I): −$1,700
• Tax + insurance: −$540
• HOA: −$0
• Vac / Maint / Mgmt: −$575
• Net cashflow: $-78/mo
• Annual: $-939/yr
• Cap rate: 6.00%
• Cash-on-cash: -1.03%
• DSCR: 0.95
• 1% rule: 0.84%
• Cash to close: $90,769

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $310k. Condition is rated excellent.
• At list price, monthly cash flow is $-78 ($-939/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $274k (11.7% below list).
• It's been on market 738 days — a 12% lower offer ($273k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $273k (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 (#350 in IL) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• CUSD 300 (suburban): math 24% / reading 27% proficiency, ranked #261 of 620 in IL (top 42%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Gary D Wright Elem Sch (math 24% / reading 24%, grade F, #922 of 2,056 statewide, top 45%, 638 students, 0% FRL); Hampshire Middle School (math 23% / reading 21%, grade F, #389 of 665 statewide, top 60%, 795 students, 0% FRL); Hampshire High School (math 30% / reading 35%, grade F, #152 of 693 statewide, top 22%, 1,938 students, 0% FRL) — zoned schools average 0% FRL vs 37% district-wide (37 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 251 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• 2 sale attempts since 3y ago; this cycle's ask is 11% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Cap rate 6.0% vs local median 4.6% in Hampshire — 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

• 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 738 days. Have you received any prior offers? Is the seller open to a 12% 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.