420 Brentwood Rd #105

Morton, IL 61550

$125,000F

1 bd · 1.0 ba · 906 sqft · Built 1968 · SingleFamily · Active · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,269/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$246
• HOA: −$145
• Vac / Maint / Mgmt: −$266
• Net cashflow: $-44/mo
• Annual: $-530/yr
• Cap rate: 5.87%
• Cash-on-cash: -1.51%
• DSCR: 0.93
• 1% rule: 1.02%
• Cash to close: $35,000

Investor read

• This is a 1-bed/1.0-bath single-family listed at $125k.
• At list price, monthly cash flow is $-44 ($-530/yr) — negative.
• To cash-flow at today's rent, offer at most $117k (6.2% below list).
• Meets the 1% rule at list price ($1k rent vs $125k).
• It's been on market 64 days — a 6% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (6.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#22 in IL, #419 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: commute F.
• Morton CUSD 709 (suburban): math 48% / reading 59% proficiency, ranked #41 of 620 in IL (top 7%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 12% free/reduced lunch — higher-income household profile.
• Zoned schools: Morton Jr High School (math 46% / reading 68%, grade B, #30 of 665 statewide, top 5%, 485 students, 0% FRL); Morton High School (math 52% / reading 51%, grade D+, #38 of 693 statewide, top 6%, 1,061 students, 0% FRL).
• Market conditions: 63 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 77 units permitted in Tazewell County in 2024 (0 in 5+ unit buildings).
• Tazewell County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 24y ago; this cycle's ask has dropped $10k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $78k; list at $125k implies a 61% gain — meaningful room to come down on a strong offer.
• Cap rate 5.9% vs local median 2.9% in Morton — 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?
• It's been on market 64 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1968 — 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?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?