901 Peter St

Island Lake, IL 60051

$345,000F

3 bd · 2.5 ba · 1,340 sqft · Built 2007 · SingleFamily · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,341/mo
• Mortgage (P&I): −$1,809
• Tax + insurance: −$593
• HOA: −$0
• Vac / Maint / Mgmt: −$492
• Net cashflow: $-552/mo
• Annual: $-6,629/yr
• Cap rate: 4.37%
• Cash-on-cash: -6.86%
• DSCR: 0.69
• 1% rule: 0.68%
• Cash to close: $96,600

Investor read

• This is a 3-bed/2.5-bath single-family listed at $345k.
• At list price, monthly cash flow is $-552 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $247k (28.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $234k (32.1% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $234k (32.1% below list) — sets the bar for 1% rule.
• In year one you build about $37k of equity ($2k loan paydown + $34k appreciation (10.0% local appreciation)).
• Location reads 81/100 on livability (#84 in IL, #1,369 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F.
• Wauconda CUSD 118 (suburban): math 22% / reading 29% proficiency, ranked #267 of 620 in IL (top 43%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Cotton Creek School (math 17% / reading 27%, grade F, #940 of 2,056 statewide, top 49%, 576 students, 0% FRL); Matthews Middle School (math 16% / reading 26%, grade F, #405 of 665 statewide, top 61%, 510 students, 0% FRL); Wauconda High School (math 25% / reading 33%, grade F, #210 of 693 statewide, top 30%, 1,460 students, 0% FRL) — zoned schools average 0% FRL vs 25% district-wide (25 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 151 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals leasing fast (median 12d on market — plan ~1-2 weeks tenant-placement turnaround); 1,595 units permitted in McHenry County in 2024 (485 in 5+ unit buildings).
• McHenry County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $234k; 47% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$59k 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.