Torrey Plan

Hampshire, IL 60140

$373,990D-

4 bd · 2.5 ba · 1,946 sqft · Built — · SingleFamily · Active · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,367/mo
• Mortgage (P&I): −$2,214
• Tax + insurance: −$704
• HOA: −$0
• Vac / Maint / Mgmt: −$707
• Net cashflow: $-258/mo
• Annual: $-3,098/yr
• Cap rate: 5.56%
• Cash-on-cash: -2.62%
• DSCR: 0.88
• 1% rule: 0.80%
• Cash to close: $118,239

Investor read

• This is a 4-bed/2.5-bath single-family listed at $374k. Condition is rated good.
• At list price, monthly cash flow is $-258 ($-3k/yr) — negative.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $337k (10.0% below list).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $337k (10.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#350 in IL) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• CUSD 300 (suburban): math 24% / reading 27% proficiency, ranked #261 of 620 in IL (top 42%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Gary D Wright Elem Sch (math 24% / reading 24%, grade F, #922 of 2,056 statewide, top 45%, 638 students, 0% FRL); Hampshire Middle School (math 23% / reading 21%, grade F, #389 of 665 statewide, top 60%, 795 students, 0% FRL); Hampshire High School (math 30% / reading 35%, grade F, #152 of 693 statewide, top 22%, 1,938 students, 0% FRL) — zoned schools average 0% FRL vs 37% district-wide (37 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 251 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• Cap rate 5.6% vs local median 4.6% in Hampshire — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• This rent runs 36% of the median local income ($111k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• 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.
• 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.