320 W Michigan Ave

Metamora, IL 61548

$235,000F

1 bd · 2.0 ba · 1,377 sqft · Built 1967 · SingleFamily · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,676/mo
• Mortgage (P&I): −$1,232
• Tax + insurance: −$534
• HOA: −$0
• Vac / Maint / Mgmt: −$352
• Net cashflow: $-442/mo
• Annual: $-5,308/yr
• Cap rate: 4.03%
• Cash-on-cash: -8.07%
• DSCR: 0.64
• 1% rule: 0.71%
• Cash to close: $65,800

Investor read

• This is a 1-bed/2.0-bath single-family listed at $235k.
• At list price, monthly cash flow is $-442 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $157k (33.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $168k (28.7% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $157k (33.3% below list) — sets the bar for cash-flow.
• In year one you build about $14k of equity ($2k loan paydown + $12k appreciation (5.2% local appreciation)).
• Location reads 81/100 on livability (#98 in IL, #1,582 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, cost of living A+; Watch: amenities F, commute F.
• County Of Woodford School (town): math 47% / reading 44% proficiency, ranked #75 of 620 in IL (top 12%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Metamora High School (math 47% / reading 44%, grade D-, #58 of 693 statewide, top 8%, 915 students, 0% FRL).
• Market conditions: 99 active listings in the ZIP; 35 units permitted in Woodford County in 2024 (0 in 5+ unit buildings).
• Woodford County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 11y 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 $158k; 49% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Built in 1967 — 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 A-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.