516 N Williams St

Reynolds, IL 61279

$125,000C-

3 bd · 1.5 ba · 1,160 sqft · Built 1930 · SingleFamily · Pending

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,205/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$267
• HOA: −$0
• Vac / Maint / Mgmt: −$253
• Net cashflow: $29/mo
• Annual: $348/yr
• Cap rate: 6.57%
• Cash-on-cash: 0.99%
• DSCR: 1.04
• 1% rule: 0.96%
• Cash to close: $35,000

Investor read

• This is a 3-bed/1.5-bath single-family listed at $125k.
• At list price, monthly cash flow is $29 ($348/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $120k (3.6% below list).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $120k (3.6% below list) — sets the bar for 1% rule.
• In year one you build about $7k of equity ($864 loan paydown + $6k appreciation (4.6% local appreciation)).
• Location reads 65/100 on livability (#660 in IL) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Rockridge CUSD 300 (rural): math 25% / reading 29% proficiency, ranked #257 of 620 in IL (top 42%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Andalusia Elem School (math 18% / reading 27%, grade F, #934 of 2,056 statewide, top 46%, 236 students, 0% FRL); Rockridge Jr High School (math 25% / reading 26%, grade F, #322 of 665 statewide, top 49%, 233 students, 0% FRL); Rockridge High School (math 42% / reading 42%, grade F, #76 of 693 statewide, top 12%, 343 students, 0% FRL) — zoned schools average 0% FRL vs 16% district-wide (16 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 4 active listings in the ZIP; 116 units permitted in Rock Island County in 2024 (50 in 5+ unit buildings).
• Rock Island County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 8 sale attempts since 22y 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.
• At projected returns (4.6% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1930 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.