78 Pine Ave

Riverside, IL 60546

$1,049,000F

8 bd · 5.0 ba · 3,376 sqft · Built 1888 · MultiFamily · Pending · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,572/mo
• Mortgage (P&I): −$5,501
• Tax + insurance: −$1,743
• HOA: −$0
• Vac / Maint / Mgmt: −$1,590
• Net cashflow: $-1,263/mo
• Annual: $-15,151/yr
• Cap rate: 4.85%
• Cash-on-cash: -5.16%
• DSCR: 0.77
• 1% rule: 0.72%
• Cash to close: $293,720

Investor read

• This is a 5 × 2-bed/1.0-bath units multifamily listed at $1.05M.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative. Per door: $-253/mo.
• To cash-flow at today's rent, offer at most $826k (21.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $757k (27.8% below list).
• It's been on market 41 days — a 3% lower offer ($1.02M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $757k (27.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $31k of value loss. Plan a longer hold.
• Location reads 88/100 on livability (#9 in IL, #241 nationally) — a professional / high-income tenant draw. Strengths: schools A+, crime A+, commute A+; Watch: cost of living F.
• Watch-outs: built in 1888 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: High-income renter base; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• 6 sale attempts since 5y 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 $221k; list at $1.05M implies a 375% gain — meaningful room to come down on a strong offer.
• Cap rate 4.8% vs local median 1.2% in Riverside — 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.
• At $7,572/mo this rent would consume 80% of the median local household income ($114k/yr) (locally 344% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• It's been on market 41 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1888 — 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?