402 Scarlet Oak Dr

Poplar Grove, IL 61065

$360,000C

4 bd · 2.5 ba · 3,379 sqft · Built 2004 · SingleFamily · Active · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,306/mo
• Mortgage (P&I): −$1,888
• Tax + insurance: −$742
• HOA: −$0
• Vac / Maint / Mgmt: −$904
• Net cashflow: $772/mo
• Annual: $9,264/yr
• Cap rate: 8.87%
• Cash-on-cash: 9.19%
• DSCR: 1.41
• 1% rule: 1.20%
• Cash to close: $100,800

Investor read

• This is a 4-bed/2.5-bath single-family listed at $360k.
• At list price, monthly cash flow is $772 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $360k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $14k of equity ($2k loan paydown + $12k appreciation (3.2% local appreciation)).
• Location reads 65/100 on livability (#598 in IL) — a middle-class / working-renter tenant base. Strengths: housing A+, crime A, cost of living A; Watch: amenities F, commute F, health & safety F.
• North Boone CUSD 200 (rural): math 14% / reading 21% proficiency, ranked #440 of 620 in IL (top 71%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Poplar Grove Elem School (math 17% / reading 27%, grade F, #940 of 2,056 statewide, top 49%, 238 students, 0% FRL); North Boone Middle School (math 15% / reading 24%, grade F, #425 of 665 statewide, top 65%, 242 students, 0% FRL); North Boone High School (math 12% / reading 22%, grade F, #430 of 693 statewide, top 66%, 517 students, 0% FRL) — zoned schools average 0% FRL vs 35% district-wide (35 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 39 active listings in the ZIP; 56 units permitted in Boone County in 2024 (0 in 5+ unit buildings).
• Boone County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 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 $34k; list at $360k implies a 962% gain — meaningful room to come down on a strong offer.
• At projected returns (3.2% appreciation + 3.0% rent growth), your $101k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.