Meridian Plan

Hampshire, IL 60140

$383,990D

4 bd · 2.5 ba · 1,847 sqft · Built — · SingleFamily · Active · 593 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,391/mo
• Mortgage (P&I): −$2,051
• Tax + insurance: −$652
• HOA: −$0
• Vac / Maint / Mgmt: −$712
• Net cashflow: $-24/mo
• Annual: $-290/yr
• Cap rate: 6.22%
• Cash-on-cash: -0.26%
• DSCR: 0.99
• 1% rule: 0.87%
• Cash to close: $109,508

Investor read

• This is a 4-bed/2.5-bath single-family listed at $384k. Condition is rated good.
• At list price, monthly cash flow is $-24 ($-290/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 $339k (11.7% below list).
• It's been on market 593 days — a 12% lower offer ($338k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $338k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k 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.
• Market conditions: 253 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• Cap rate 6.2% 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.
• This rent runs 37% of the median local income ($111k/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 593 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.