128 Majestic Dr

Lombard, IL 60148

$310,000F

3 bd · 1.0 ba · 1,226 sqft · Built 1979 · Townhouse · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,810/mo
• Mortgage (P&I): −$1,626
• Tax + insurance: −$651
• HOA: −$0
• Vac / Maint / Mgmt: −$590
• Net cashflow: $-57/mo
• Annual: $-688/yr
• Cap rate: 6.07%
• Cash-on-cash: -0.79%
• DSCR: 0.96
• 1% rule: 0.91%
• Cash to close: $86,800

Investor read

• This is a 3-bed/1.0-bath townhouse listed at $310k.
• At list price, monthly cash flow is $-57 ($-688/yr) — negative.
• To cash-flow at today's rent, offer at most $300k (3.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $281k (9.4% below list).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $281k (9.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#314 in IL) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A-; Watch: cost of living C-, health & safety D+, amenities F.
• Glenbard Twp Hsd 87 (suburban): math 38% / reading 40% proficiency, ranked #126 of 620 in IL (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents flat; 136 active listings in the ZIP; 20 comparable units currently listed for rent nearby; rentals leasing fast (median 3d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,378 units permitted in DuPage County in 2024 (594 in 5+ unit buildings).
• Current owner paid $60k; list at $310k implies a 417% gain — meaningful room to come down on a strong offer.
• Cap rate 6.1% vs local median 3.8% in Lombard — 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 34% of the median local income ($101k/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?
• Built in 1979 — 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?
• 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.