Torrey Plan

Hampshire, IL 60140

$382,990F

4 bd · 2.5 ba · 1,946 sqft · Built — · SingleFamily · Active · 151 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,081/mo
• Mortgage (P&I): −$2,297
• Tax + insurance: −$730
• HOA: −$45
• Vac / Maint / Mgmt: −$647
• Net cashflow: $-639/mo
• Annual: $-7,663/yr
• Cap rate: 4.54%
• Cash-on-cash: -6.25%
• DSCR: 0.72
• 1% rule: 0.70%
• Cash to close: $122,667

Investor read

• This is a 4-bed/2.5-bath single-family listed at $383k. Condition is rated good.
• At list price, monthly cash flow is $-639 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $346k (9.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $308k (19.6% below list).
• It's been on market 151 days — a 12% lower offer ($337k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $308k (19.6% 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: 387 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• This rent runs 33% 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?
• It's been on market 151 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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.