488 Ann St

West Chicago, IL 60185

$325,000D-

3 bd · 1.0 ba · 988 sqft · Built 1960 · SingleFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,995/mo
• Mortgage (P&I): −$1,704
• Tax + insurance: −$463
• HOA: −$0
• Vac / Maint / Mgmt: −$629
• Net cashflow: $198/mo
• Annual: $2,379/yr
• Cap rate: 7.02%
• Cash-on-cash: 2.61%
• DSCR: 1.12
• 1% rule: 0.92%
• Cash to close: $91,000

Investor read

• This is a 3-bed/1.0-bath single-family listed at $325k.
• At list price, monthly cash flow is $198 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $300k (7.8% below list).
• It's been on market 15 days — a 2% lower offer ($320k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $300k (7.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#731 in IL) — a middle-class / working-renter tenant base. Strengths: housing A+, crime A, employment A-; Watch: amenities F, commute F, health & safety F.
• Chsd 94 (suburban): math 20% / reading 21% proficiency, ranked #378 of 620 in IL (top 61%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Pioneer Elem School (math 2% / reading 2%, grade F, #1,927 of 2,056 statewide, top 100%, 263 students, 0% FRL); Leman Middle School (math 11% / reading 12%, grade F, #571 of 665 statewide, top 86%, 1,124 students, 0% FRL); West Chicago Comm High School (math 20% / reading 21%, grade F, #350 of 693 statewide, top 51%, 2,076 students, 0% FRL).
• Market conditions: 50 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 1,378 units permitted in DuPage County in 2024 (594 in 5+ unit buildings).
• 6 sale attempts since 15y 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 $213k; list at $325k implies a 53% gain — meaningful room to come down on a strong offer.
• Cap rate 7.0% vs local median 3.0% in West Chicago — 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

• Built in 1960 — 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 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?
• 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.