9504 S 86th Ave #201

Hickory Hills, IL 60457

$169,000D

2 bd · 1.0 ba · 1,129 sqft · Built 1967 · Condo · Active · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,760/mo
• Mortgage (P&I): −$886
• Tax + insurance: −$282
• HOA: −$235
• Vac / Maint / Mgmt: −$370
• Net cashflow: $-12/mo
• Annual: $-149/yr
• Cap rate: 6.20%
• Cash-on-cash: -0.31%
• DSCR: 0.99
• 1% rule: 1.04%
• Cash to close: $47,320

Investor read

• This is a 2-bed/1.0-bath condo listed at $169k. Condition is rated fair.
• At list price, monthly cash flow is $-12 ($-149/yr) — negative.
• To cash-flow at today's rent, offer at most $167k (1.1% below list).
• Meets the 1% rule at list price ($2k rent vs $169k).
• It's been on market 23 days — a 2% lower offer ($166k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $166k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#54 in IL, #1,002 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, housing A+; Watch: health & safety D+, amenities D-.
• Cons Hsd 230 (suburban): math 35% / reading 39% proficiency, ranked #146 of 620 in IL (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Oak Ridge Elem School (math 44% / reading 50%, grade D-, #219 of 2,056 statewide, top 12%, 703 students, 0% FRL); H H Conrady Jr High School (math 47% / reading 62%, grade B-, #35 of 665 statewide, top 5%, 1,113 students, 0% FRL); Amos Alonzo Stagg High School (math 30% / reading 35%, grade F, #152 of 693 statewide, top 22%, 2,538 students, 0% FRL).
• Market conditions: 49 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals at typical pace (median 17d 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).
• 4 sale attempts since 13y 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 $60k; list at $169k implies a 182% gain — meaningful room to come down on a strong offer.
• Cap rate 6.2% vs local median 2.7% in Hickory Hills — 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

• 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1967 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?

Repairs flagged (vision-AI assessment)

• Major: roof — Significant wear and tear
• Major: exterior siding — Weathered and peeling
• Major: interior walls — Worn paint and potential structural issues
• Major: windows — Older windows may need replacement
• Major: HVAC — No photos of HVAC, but likely outdated