16442 Honore Ave

Markham, IL 60428

$133,000A

3 bd · 1.0 ba · 1,044 sqft · Built 1954 · SingleFamily · Active · 170 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,409/mo
• Mortgage (P&I): −$697
• Tax + insurance: −$438
• HOA: −$0
• Vac / Maint / Mgmt: −$506
• Net cashflow: $767/mo
• Annual: $9,207/yr
• Cap rate: 13.22%
• Cash-on-cash: 24.72%
• DSCR: 2.10
• 1% rule: 1.81%
• Cash to close: $37,240

Investor read

• This is a 3-bed/1.0-bath single-family listed at $133k. Condition is rated good.
• At list price, monthly cash flow is $767 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $133k).
• It's been on market 170 days — a 12% lower offer ($117k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (12.0% below list) — sets the bar for market timing.
• In year one you build about $14k of equity ($920 loan paydown + $13k appreciation (10.0% local appreciation)).
• Location reads 76/100 on livability (#186 in IL, #3,539 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: crime D, amenities D, employment D.
• Thornton Twp Hsd 205 (suburban): math 7% / reading 8% proficiency, ranked #594 of 620 in IL (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Barack H Obama Learning Academy (math 24% / reading 24%, grade F, #850 of 2,056 statewide, top 45%, 468 students, 0% FRL); Thornwood High School (math 8% / reading 9%, grade F, #584 of 693 statewide, top 85%, 1,996 students, 0% FRL).
• Watch-outs: property tax is 3.5% of price; built in 1954 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 106 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals lingering (median 55d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 68% of comp listings sitting > 30 days — soft ceiling on asking rent; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• 4 sale attempts since 20y ago; this cycle's ask has dropped $32k (19%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $81k; list at $133k implies a 64% gain — meaningful room to come down on a strong offer.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $37k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 13.2% vs local median 10.5% in Markham — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.
• At $2,409/mo this rent would consume 54% of the median local household income ($53k/yr) (locally 32% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 170 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1954 — 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?
• 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.
• 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 D 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?
• 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.