408 E 1st St

Ramsey, IL 62080

$74,000B+

3 bd · 1.0 ba · 1,184 sqft · Built 1977 · Other · Active · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,081/mo
• Mortgage (P&I): −$388
• Tax + insurance: −$153
• HOA: −$0
• Vac / Maint / Mgmt: −$227
• Net cashflow: $312/mo
• Annual: $3,747/yr
• Cap rate: 11.36%
• Cash-on-cash: 18.09%
• DSCR: 1.80
• 1% rule: 1.46%
• Cash to close: $20,720

Investor read

• This is a 3-bed/1.0-bath other listed at $74k.
• At list price, monthly cash flow is $312 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $74k).
• It's been on market 27 days — a 2% lower offer ($73k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $73k (1.5% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($512 loan paydown + $4k appreciation (5.2% local appreciation)).
• Location reads 62/100 on livability (#887 in IL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: crime D-, amenities F, commute F.
• Ramsey CUSD 204 (rural): math 23% / reading 42% proficiency, ranked #233 of 620 in IL (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Ramsey High School (math 22% / reading 37%, grade F, #187 of 693 statewide, top 30%, 206 students, 0% FRL) — zoned schools average 0% FRL vs 48% district-wide (48 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 8 active listings in the ZIP.
• Fayette County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (5.2% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1977 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.