653 E Willow St

Elburn, IL 60119

$275,000C

3 bd · 2.5 ba · 1,625 sqft · Built 2004 · SingleFamily · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,269/mo
• Mortgage (P&I): −$1,442
• Tax + insurance: −$616
• HOA: −$270
• Vac / Maint / Mgmt: −$687
• Net cashflow: $255/mo
• Annual: $3,059/yr
• Cap rate: 7.41%
• Cash-on-cash: 3.97%
• DSCR: 1.18
• 1% rule: 1.19%
• Cash to close: $77,000

Investor read

• This is a 3-bed/2.5-bath single-family listed at $275k.
• At list price, monthly cash flow is $255 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $275k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#773 in IL) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Kaneland CUSD 302 (rural): math 33% / reading 42% proficiency, ranked #122 of 620 in IL (top 20%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 13% free/reduced lunch — higher-income household profile.
• Zoned schools: Kaneland Blackberry Creek Elem (523 students, 0% FRL); Kaneland Harter Middle School (math 24% / reading 24%, grade F, #332 of 665 statewide, top 55%, 894 students, 0% FRL); Kaneland Senior High School (math 34% / reading 43%, grade F, #100 of 693 statewide, top 15%, 1,309 students, 0% FRL).
• Market conditions: 50 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 27d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• 2 sale attempts since 17y ago; this cycle's ask is 60% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $167k; list at $275k implies a 65% gain — meaningful room to come down on a strong offer.
• Cap rate 7.4% vs local median 3.9% in Elburn — 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 does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.