159 W Locust St

Canton, IL 61520

$104,900F

4 bd · 1.5 ba · 988 sqft · Built 1916 · Other · Active · 193 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $698/mo
• Mortgage (P&I): −$550
• Tax + insurance: −$339
• HOA: −$0
• Vac / Maint / Mgmt: −$147
• Net cashflow: $-337/mo
• Annual: $-4,049/yr
• Cap rate: 2.43%
• Cash-on-cash: -13.78%
• DSCR: 0.39
• 1% rule: 0.67%
• Cash to close: $29,372

Investor read

• This is a 4-bed/1.5-bath other listed at $105k.
• At list price, monthly cash flow is $-337 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $71k (32.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $70k (33.5% below list).
• It's been on market 193 days — a 12% lower offer ($92k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $70k (33.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $725 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#318 in IL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, amenities F, commute F.
• Canton Union SD 66 (town): math 19% / reading 23% proficiency, ranked #417 of 620 in IL (top 67%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Westview Elementary School (math 17% / reading 17%, grade F, #1,141 of 2,056 statewide, top 59%, 398 students, 0% FRL); Ingersoll Middle School (math 18% / reading 24%, grade F, #405 of 665 statewide, top 61%, 645 students, 0% FRL); Canton High School (math 22% / reading 27%, grade F, #256 of 693 statewide, top 44%, 641 students, 0% FRL) — zoned schools average 0% FRL vs 46% district-wide (46 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: property tax is 3.4% of price; built in 1916 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 108 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 14 units permitted in Fulton County in 2024 (0 in 5+ unit buildings).
• Fulton County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 10y ago; this cycle's ask is 7969% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $50k; list at $105k implies a 110% gain — meaningful room to come down on a strong offer.
• Cap rate 2.4% vs local median 7.8% in Canton — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• It's been on market 193 days. Have you received any prior offers? Is the seller open to a 33% concession, seller financing, or rate buy-down credit?
• Built in 1916 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• 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?