701 Somerset Dr

Germantown Hills, IL 61548

$264,900F

1 bd · 2.0 ba · 1,752 sqft · Built 1976 · SingleFamily · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,557/mo
• Mortgage (P&I): −$1,389
• Tax + insurance: −$456
• HOA: −$0
• Vac / Maint / Mgmt: −$327
• Net cashflow: $-615/mo
• Annual: $-7,383/yr
• Cap rate: 3.51%
• Cash-on-cash: -9.95%
• DSCR: 0.56
• 1% rule: 0.59%
• Cash to close: $74,172

Investor read

• This is a 1-bed/2.0-bath single-family listed at $265k.
• At list price, monthly cash flow is $-615 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $156k (41.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $156k (41.2% below list).
• It's been on market 24 days — a 2% lower offer ($261k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $156k (41.2% below list) — sets the bar for 1% rule.
• In year one you build about $15k of equity ($2k loan paydown + $14k appreciation (5.2% local appreciation)).
• Location reads 77/100 on livability (#158 in IL, #2,935 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• County Of Woodford School (town): math 47% / reading 44% proficiency, ranked #75 of 620 in IL (top 12%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Metamora High School (math 47% / reading 44%, grade D-, #58 of 693 statewide, top 8%, 915 students, 0% FRL).
• Market conditions: 98 active listings in the ZIP; 35 units permitted in Woodford County in 2024 (0 in 5+ unit buildings).
• Woodford County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $146k; list at $265k implies a 81% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 1976 — 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 A-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.