404 S Congress Ave

Polo, IL 61064

$20,000B-

2 bd · 1.0 ba · 950 sqft · Built — · SingleFamily · Pending

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $575/mo
• Mortgage (P&I): −$105
• Tax + insurance: −$90
• HOA: −$0
• Vac / Maint / Mgmt: −$121
• Net cashflow: $260/mo
• Annual: $3,118/yr
• Cap rate: 21.88%
• Cash-on-cash: 55.68%
• DSCR: 3.48
• 1% rule: 2.88%
• Cash to close: $5,600

Investor read

• This is a 2-bed/1.0-bath single-family listed at $20k.
• At list price, monthly cash flow is $260 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($575 rent vs $20k).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $138 of loan paydown is wiped out by about $600 of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#548 in IL) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Polo CUSD 222 (rural): math 27% / reading 40% proficiency, ranked #210 of 620 in IL (top 34%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Centennial Elem School (math 27% / reading 37%, grade F, #586 of 2,056 statewide, top 31%, 279 students, 0% FRL); Aplington Middle School (math 27% / reading 52%, grade F, #146 of 665 statewide, top 22%, 115 students, 0% FRL); Polo Comm High School (math 15% / reading 15%, grade F, #462 of 693 statewide, top 68%, 195 students, 0% FRL) — zoned schools average 0% FRL vs 36% district-wide (36 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: property tax is 4.9% of price.
• Market conditions: 19 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 113 units permitted in Ogle County in 2024 (67 in 5+ unit buildings).
• Ogle County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $6k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.