505 Hinton St

Kane, IL 62054

$139,000D

3 bd · 2.5 ba · 1,496 sqft · Built 1973 · Other · Active · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,175/mo
• Mortgage (P&I): −$729
• Tax + insurance: −$237
• HOA: −$0
• Vac / Maint / Mgmt: −$247
• Net cashflow: $-37/mo
• Annual: $-449/yr
• Cap rate: 5.97%
• Cash-on-cash: -1.15%
• DSCR: 0.95
• 1% rule: 0.85%
• Cash to close: $38,920

Investor read

• This is a 3-bed/2.5-bath other listed at $139k.
• At list price, monthly cash flow is $-37 ($-449/yr) — negative.
• To cash-flow at today's rent, offer at most $132k (4.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $118k (15.5% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $118k (15.5% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($961 loan paydown + $7k appreciation (5.0% local appreciation)).
• Location reads 50/100 on livability (#1,334 in IL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Jersey CUSD 100 (town): math 25% / reading 32% proficiency, ranked #260 of 620 in IL (top 42%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Jerseyville East Elem School (math 35% / reading 25%, grade F, #648 of 2,056 statewide, top 32%, 384 students, 0% FRL); Jersey Community Middle School (math 22% / reading 38%, grade F, #246 of 665 statewide, top 38%, 499 students, 0% FRL); Jersey Comm High School (math 23% / reading 30%, grade F, #241 of 693 statewide, top 35%, 1,006 students, 0% FRL) — zoned schools average 0% FRL vs 41% district-wide (41 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 2 active listings in the ZIP; 1 units permitted in Greene County in 2024 (0 in 5+ unit buildings).
• Greene County population projected at -28% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 2y 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 $115k; 21% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (5.0% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.