226-228 Smith Ave · Rockford, IL 61107

$150,000

6 bd · 2.0 ba · — sqft · MultiFamily · 33 Days on market

Built 1900

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Rent growth +4.0/5.0
• Livability +3.1/5.0
• Condition / age +2.5/5.0
• Schools +1.2/10.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 2 units. confirmed

Listing remarks MLS

Multi Family 2 large units 1264 sq ft each unit with 3 bedrooms and 1 bath on upper level. Unit on left vacant & needs repair. Unit on right in good shape and rented.

Key facts

• Parking
• Built 1900
• Listed 33 days

What this means for you Summary

Snapshot

• This is a 2 × 3-bed/1.0-bath units multifamily listed at $150k.

Deal economics

• At list price, monthly cash flow is $1k ($14k/yr) — positive. Per door: $574/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $150k).
• Recommended offer: $146k (3.0% below list) — sets the bar for market timing.
• Cap rate 15.5% vs local median 6.1% in Rockford — 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.

Location & tenants

• Location reads 62/100 on livability (#876 in IL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools F, crime F, amenities F.
• Rockford SD 205 (urban): math 12% / reading 16% proficiency, ranked #533 of 620 in IL (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 73% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+5.9%/yr); 151 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 285 units permitted in Winnebago County in 2024 (0 in 5+ unit buildings).
• This rent runs 43% of the median local income ($79k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Winnebago County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 5.9% rent growth), your $42k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• It's been on market 33 days — a 3% lower offer ($146k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts 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 $30k; list at $150k implies a 400% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $145,500 (3.0% below list)

Questions for the listing agent

1. It's been on market 33 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
8. 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.
9. 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.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.86% ✓
• Cap rate: 15.48%
• Cash-on-cash: 32.81%
• DSCR: 2.46
• GRM: 4.5

CMA / ARV

No comps found within radius.

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
140 Summit St	0.21mi	6/4.0	—	1mo	$235,000	—	69
140-142 Summit St	0.21mi	6/4.0	—	1mo	$235,000	—	69
201 Adams St	0.29mi	5/2.0 (-1)	—	10mo	$195,000	—	60
1602 E State St	0.14mi	6/6.0	2,000	7mo	$740,000	$370	59
209 S Highland Ave	0.32mi	5/2.0 (-1)	—	10mo	$206,000	—	59
517 8th St	0.68mi	6/2.0	—	8mo	$128,500	—	49
420 8th St	0.61mi	6/4.0	—	4mo	$235,000	—	47
1241 6th Ave	0.72mi	5/2.0 (-1)	—	8mo	$185,000	—	42
1437 7th Ave	0.70mi	5/2.0 (-1)	—	10mo	$111,000	—	41
513 8th St	0.68mi	5/3.0 (-1)	—	13mo	$140,000	—	36
515 & 517 Hill St	0.71mi	6/6.0	—	4mo	$200,000	—	35
628 9th St	0.68mi	7/5.0 (+1)	—	9mo	$190,000	—	31

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 5.92% rent growth · sell at horizon

5-year hold

• IRR: 31.3%
• Equity multiple: 2.37×
• Total profit: $57,338
• Equity at exit: $22,365

10-year hold

• IRR: 40.0%
• Equity multiple: 5.31×
• Total profit: $181,146
• Equity at exit: $12,969

Cash invested: $42,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 43 Moderately Tenant-Leaning
• State Illinois: 43 Moderately Tenant-Leaning · D+7
• County: — inherits STATE
• City: — inherits STATE

Chicago RTLO is among the strongest tenant ordinances in the Midwest; downstate is more landlord-friendly.

Methodology + full state rankings →

ZIP-level market 61107

• Home prices YoY: -20.1%
• Rents YoY: 5.9%
• Active inventory: 151
• Price-to-rent: 8.9×

Monthly cashflow live

• Estimated rent: $2,794 high
• Mortgage (P&I): −$787
• Tax from tax record: −$210 /mo · $2,517/yr
• Insurance: −$62
• HOA: −$0
• Vacancy / Maint / Mgmt: −$587
• Net cashflow: $1,148

Break-even live

Break-even rent $1,340

Max offer price $150,000

Occupancy floor 54%

Sensitivity live

Price	-10% $1,233	-5% $1,191	+0% $1,148	+5% $1,106	+10% $1,063
Rent	-10% $928	-5% $1,038	+0% $1,148	+5% $1,259	+10% $1,369
Rate	-1.0pp $1,224	-0.5pp $1,187	base $1,148	+0.5pp $1,109	+1.0pp $1,070

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	3	1	$2,794
Total (2 units)			$2,794

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $37,500
• Closing costs: $4,500
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
620 Paris Ave Rockford, IL	5.0	3.5	—	$2,200	—	21d	1	0.54mi

Listing history 5 events

1. 2025-12-16
   status Pending 172-char remark

   Show marketing remark (172 chars)

   Multi Family 2 large units 1264 sq ft each unit with 3 bedrooms and 1 bath on upper level. Unit on left vacant & needs repair. Unit on right in good shape and rented.

2. 2025-12-16
   status Pending

   Show marketing remark (172 chars)

   Multi Family 2 large units 1264 sq ft each unit with 3 bedrooms and 1 bath on upper level. Unit on left vacant & needs repair. Unit on right in good shape and rented.

3. 2025-11-13
   listed $150,000 Active 172-char remark

   Show marketing remark (172 chars)

   Multi Family 2 large units 1264 sq ft each unit with 3 bedrooms and 1 bath on upper level. Unit on left vacant & needs repair. Unit on right in good shape and rented.

4. 2025-11-13
   listed $150,000 Active

   Show marketing remark (172 chars)

   Multi Family 2 large units 1264 sq ft each unit with 3 bedrooms and 1 bath on upper level. Unit on left vacant & needs repair. Unit on right in good shape and rented.

5. 2020-09-24
   soldstatus $30,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IL · Partial reset (capped growth)

• Current annual tax: $2,517 · $210/mo
• Projected year-2 tax: $2,961 · $247/mo
• Expected delta: +$444/yr (+$37/mo · 17.6%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥101°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $33,528
• − Mortgage interest: −$8,402
• − Property taxes: −$2,517
• − Insurance: −$750
• − Repairs & maintenance: −$2,682
• − Management: −$2,682
• − Depreciation: −$4,364
• Taxable income: $12,130
• Est. tax owed @ 24.0%: −$2,911
• After-tax cash flow: $10,869/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Rockford SD 205
• NCES district ID: 1734510
• Math proficiency: 12% ▼ -2.00%
• Reading proficiency: 16% ▼ -3.00%
• Median HH income: $42,533
• Composite: 12.21/100
• National rank: #9649
• State rank: #533 of 620 in IL

Livability — Rockford

• Score: 62/100
• State rank: #876
• US rank: #17035

Category grades

Amenities F Commute F Cost of living A+ Crime F Employment F Housing A+ Health & safety A+ User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Rockford, IL
• County: Winnebago County · 147,297 people
• City population: 147,297
• Metro: Rockford, IL
• Population (ZIP): 30,765
• Household income: $78,574
• Rent vs Own: 28.9% rent · 71.1% own
• Severe rent burden: 981.0

Population outlook (Winnebago County) Hauer SSP2

• Today (2025): 271,080 people
• By 2030: 260,684 · -3.8%
• By 2040: 238,405 · -12.1%
• By 2050: 216,129 · -20.3%
• By 2075: 172,882 · -36.2%
• By 2100: 135,336 · -50.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (68%)
• Race & ethnicity: White 68% Hispanic / Latino 15% Black 9% Two or more races 9% Asian 4% Native American 1%
• Hispanic origin (detail): Mexican 11% Puerto Rican 1%
• Common ancestry: Romanian 6% Portuguese 4% Lithuanian 2%
• Foreign-born: 10% · Canada, China
• Languages at home: 83% English-only · Spanish 11% Arabic 1% Other Indo-European 1%

Political lean MEDSL · Winnebago

• 2024 margin: Toss-up / Even · D 49.5% · R 49.0% · Other 1.5%
• 2008→2024 swing: -12.2pp toward R · 2008: 12.8pp · 2024: 0.6pp
• All cycles: 2024: D+0.6 2020: D+2.5 2016: R+1.2 2012: D+5.7 2008: D+12.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -62.46%
• Current HPI: 248.8598
• Rent YoY: ▲ 5.92%
• Metro: Rockford, IL
• State GDP YoY: ▲ 1.59%
• F500 in state: 60

Industry mix (Fortune 500 HQ in IL)

Industry	F500 HQs	Revenue
▸Insurance	4	$201B
▸Consumer Goods	4	$87B
▸Industrial Machinery	3	$64B
▸Healthcare	2	$55B
▸Retail / Pharmacy	1	$148B
▸Agriculture / Food	1	$86B

Price history

+400.0% since first listed

5 events — show timeline

• 2025-12-16 Pending — NWIAR
• 2025-12-16 Pending — MRED as Distributed by MLS Grid
• 2025-11-13 Listed $150,000 NWIAR
• 2025-11-13 Listed $150,000 MRED as Distributed by MLS Grid
• 2020-09-24 Sold (Public Records) $30,000 Public Records

Property tax history

-1.2%/yr

Latest (2024): $2,517 · +3.5% YoY. Source: county tax records.