2650 Brookwood Way Dr #223

Rolling Meadows, IL 60008

$220,000D

2 bd · 2.0 ba · 1,000 sqft · Built 1978 · Condo · Active · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,301/mo
• Mortgage (P&I): −$1,154
• Tax + insurance: −$433
• HOA: −$355
• Vac / Maint / Mgmt: −$483
• Net cashflow: $-124/mo
• Annual: $-1,488/yr
• Cap rate: 5.98%
• Cash-on-cash: -1.12%
• DSCR: 0.95
• 1% rule: 1.05%
• Cash to close: $61,600

Investor read

• This is a 2-bed/2.0-bath condo listed at $220k. Condition is rated good.
• At list price, monthly cash flow is $-124 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $202k (8.2% below list).
• Meets the 1% rule at list price ($2k rent vs $220k).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $202k (8.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#162 in IL, #2,994 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: health & safety C-, amenities F.
• Township Hsd 211 (urban): math 45% / reading 43% proficiency, ranked #89 of 620 in IL (top 14%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Central Road Elem School (math 42% / reading 42%, grade F, #336 of 2,056 statewide, top 18%, 382 students, 0% FRL); Carl Sandburg Jr High School (math 24% / reading 25%, grade F, #332 of 665 statewide, top 55%, 470 students, 0% FRL); Wm Fremd High School (math 59% / reading 61%, grade C+, #18 of 693 statewide, top 3%, 2,708 students, 0% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents soft (-1.4%/yr); 43 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals at typical pace (median 17d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 3.7% in Rolling Meadows — 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

• 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 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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.