750 Pearson St #808

Des Plaines, IL 60016

$2,900D+

2 bd · 2.0 ba · 1,493 sqft · Built 2002 · Townhouse · Coming Soon · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,539/mo
• Mortgage (P&I): −$15
• Tax + insurance: −$5
• HOA: −$0
• Vac / Maint / Mgmt: −$533
• Net cashflow: $1,986/mo
• Annual: $23,828/yr
• Cap rate: 827.95%
• Cash-on-cash: 2934.49%
• DSCR: 131.57
• 1% rule: 87.55%
• Cash to close: $812

Investor read

• This is a 2-bed/2.0-bath townhouse listed at $3k.
• At list price, monthly cash flow is $2k ($24k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $3k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $20 of loan paydown is wiped out by about $87 of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#58 in IL, #1,038 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+.
• Maine Township Hsd 207 (suburban): math 34% / reading 39% proficiency, ranked #143 of 620 in IL (top 23%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Iroquois Community School (math 44% / reading 59%, grade C-, #167 of 2,056 statewide, top 8%, 432 students, 0% FRL); Chippewa Middle School (math 27% / reading 38%, grade F, #223 of 665 statewide, top 34%, 615 students, 0% FRL); Maine West High School (math 21% / reading 27%, grade F, #304 of 693 statewide, top 44%, 1,880 students, 0% FRL).
• Market conditions: Rents rising fast (+4.7%/yr); 131 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 20d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• At projected returns (-3.0% appreciation + 4.7% rent growth), your $812 cash investment doubles in ~1 year — after that, you're playing with house money.
• Cap rate 828.0% vs local median 3.5% in Des Plaines — 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 35% of the median local income ($87k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• 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.