7901 Newland Ave

Burbank, IL 60459

$575,000B-

4 bd · 4.0 ba · 2,850 sqft · Built 1961 · MultiFamily · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,326/mo
• Mortgage (P&I): −$3,015
• Tax + insurance: −$1,145
• HOA: −$0
• Vac / Maint / Mgmt: −$1,748
• Net cashflow: $2,418/mo
• Annual: $29,011/yr
• Cap rate: 11.34%
• Cash-on-cash: 18.02%
• DSCR: 1.80
• 1% rule: 1.45%
• Cash to close: $161,000

Investor read

• This is a 4 × 4-bed/4.0-bath units multifamily listed at $575k.
• At list price, monthly cash flow is $2k ($29k/yr) — positive. Per door: $604/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $575k).
• 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 $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#132 in IL, #2,422 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, employment A-; Watch: health & safety C-, amenities F.
• Reavis Twp Hsd 220 (suburban): math 18% / reading 21% proficiency, ranked #420 of 620 in IL (top 68%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Maddock Elementary School (math 12% / reading 22%, grade F, #1,141 of 2,056 statewide, top 59%, 287 students, 0% FRL); Liberty Junior High School (math 12% / reading 17%, grade F, #517 of 665 statewide, top 79%, 1,190 students, 0% FRL); Reavis High School (math 18% / reading 21%, grade F, #397 of 693 statewide, top 61%, 1,986 students, 0% FRL).
• Market conditions: 55 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• Current owner paid $215k; list at $575k implies a 167% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $161k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 11.3% vs local median 5.3% in Burbank — 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.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1961 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.