4833 W 109th St #201

Oak Lawn, IL 60453

$155,000D

2 bd · 1.0 ba · 900 sqft · Built 1973 · Condo · Active · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,674/mo
• Mortgage (P&I): −$813
• Tax + insurance: −$219
• HOA: −$301
• Vac / Maint / Mgmt: −$352
• Net cashflow: $-10/mo
• Annual: $-124/yr
• Cap rate: 6.21%
• Cash-on-cash: -0.29%
• DSCR: 0.99
• 1% rule: 1.08%
• Cash to close: $43,400

Investor read

• This is a 2-bed/1.0-bath condo listed at $155k.
• At list price, monthly cash flow is $-10 ($-124/yr) — negative.
• To cash-flow at today's rent, offer at most $153k (1.2% below list).
• Meets the 1% rule at list price ($2k rent vs $155k).
• It's been on market 16 days — a 2% lower offer ($153k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $153k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#102 in IL, #1,614 nationally) — a professional / high-income tenant draw. Strengths: commute A+, housing A+, employment A-.
• Chsd 218 (suburban): math 14% / reading 20% proficiency, ranked #454 of 620 in IL (top 73%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Stony Creek Elem School (math 12% / reading 22%, grade F, #1,141 of 2,056 statewide, top 59%, 624 students, 0% FRL); Prairie Jr High School (math 14% / reading 35%, grade F, #332 of 665 statewide, top 55%, 336 students, 0% FRL); H L Richards High Sch(Campus) (math 17% / reading 20%, grade F, #427 of 693 statewide, top 62%, 1,676 students, 0% FRL).
• Market conditions: Rents rising fast (+8.2%/yr); 189 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals leasing fast (median 12d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• 5 sale attempts since 16y ago; this cycle's ask is 76% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $87k; list at $155k implies a 78% gain — meaningful room to come down on a strong offer.
• Cap rate 6.2% vs local median 4.4% in Oak Lawn — 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.

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 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.