200 Sunset Ct

Lake Zurich, IL 60047

$719,900F

4 bd · 4.5 ba · 2,851 sqft · Built 2005 · SingleFamily · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,592/mo
• Mortgage (P&I): −$3,775
• Tax + insurance: −$1,496
• HOA: −$0
• Vac / Maint / Mgmt: −$1,174
• Net cashflow: $-854/mo
• Annual: $-10,252/yr
• Cap rate: 4.87%
• Cash-on-cash: -5.09%
• DSCR: 0.77
• 1% rule: 0.78%
• Cash to close: $201,572

Investor read

• This is a 4-bed/4.5-bath single-family listed at $720k.
• At list price, monthly cash flow is $-854 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $569k (21.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $559k (22.3% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $559k (22.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#175 in IL, #3,345 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Lake Zurich CUSD 95 (suburban): math 47% / reading 47% proficiency, ranked #44 of 620 in IL (top 7%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: May Whitney Elem School (math 45% / reading 37%, grade F, #372 of 2,056 statewide, top 18%, 657 students, 0% FRL); Lake Zurich Middle - N Campus (math 42% / reading 45%, grade D, #101 of 665 statewide, top 16%, 704 students, 0% FRL); Lake Zurich High School (math 54% / reading 58%, grade C, #25 of 693 statewide, top 4%, 1,804 students, 0% FRL).
• Market conditions: 164 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 75% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 948 units permitted in Lake County in 2024 (424 in 5+ unit buildings).
• Lake County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 7 sale attempts since 18y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $530k; 36% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• This rent runs 38% of the median local income ($176k/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?
• 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.