2626 Flossmoor Rd

Flossmoor, IL 60422

$698,000F

2 bd · 2.5 ba · 6,357 sqft · Built 1970 · Condo · Active · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,134/mo
• Mortgage (P&I): −$3,660
• Tax + insurance: −$2,206
• HOA: −$0
• Vac / Maint / Mgmt: −$658
• Net cashflow: $-3,391/mo
• Annual: $-40,689/yr
• Cap rate: 0.46%
• Cash-on-cash: -20.82%
• DSCR: 0.07
• 1% rule: 0.45%
• Cash to close: $195,440

Investor read

• This is a 2-bed/2.5-bath condo listed at $698k.
• At list price, monthly cash flow is $-3k ($-41k/yr) — negative.
• To cash-flow at today's rent, offer at most $358k (48.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $313k (55.1% below list).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $313k (55.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $21k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#107 in IL, #1,718 nationally) — a professional / high-income tenant draw. Strengths: employment A+, housing A+, crime B+; Watch: cost of living D, amenities F.
• Homewood Flossmoor Chsd 233 (suburban): math 21% / reading 27% proficiency, ranked #272 of 620 in IL (top 44%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Heather Hill Elem School (math 27% / reading 37%, grade F, #586 of 2,056 statewide, top 31%, 326 students, 0% FRL); Parker Junior High School (math 16% / reading 21%, grade F, #438 of 665 statewide, top 67%, 858 students, 0% FRL); Homewood-Flossmoor High School (math 21% / reading 27%, grade F, #304 of 693 statewide, top 44%, 2,798 students, 0% FRL).
• Watch-outs: property tax is 3.3% of price.
• Market conditions: 95 active listings in the ZIP; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• 7 sale attempts since 18y ago; this cycle's ask has dropped $92k (12%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $230k; list at $698k implies a 203% gain — meaningful room to come down on a strong offer.
• Cap rate 0.5% vs local median 4.3% in Flossmoor — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• Schools are B-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?
• 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.