1200 S Prospect Ave #108

Elmhurst, IL 60126

$329,000D-

2 bd · 2.0 ba · 1,201 sqft · Built 2000 · Condo · Active · 286 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,931/mo
• Mortgage (P&I): −$1,725
• Tax + insurance: −$471
• HOA: −$375
• Vac / Maint / Mgmt: −$616
• Net cashflow: $-255/mo
• Annual: $-3,065/yr
• Cap rate: 5.60%
• Cash-on-cash: -2.46%
• DSCR: 0.89
• 1% rule: 0.89%
• Cash to close: $92,120

Investor read

• This is a 2-bed/2.0-bath condo listed at $329k.
• At list price, monthly cash flow is $-255 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $284k (13.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $293k (10.9% below list).
• It's been on market 286 days — a 12% lower offer ($290k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $284k (13.7% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 87/100 on livability (#11 in IL, #268 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: cost of living F.
• Dupage Hsd 88 (suburban): math 29% / reading 35% proficiency, ranked #212 of 620 in IL (top 34%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Stella May Swartz Elem School (math 37% / reading 37%, grade F, #457 of 2,056 statewide, top 24%, 150 students, 0% FRL); John E Albright Middle School (math 22% / reading 32%, grade F, #302 of 665 statewide, top 47%, 197 students, 0% FRL); Willowbrook High School (math 34% / reading 41%, grade F, #104 of 693 statewide, top 15%, 1,992 students, 0% FRL).
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents rising fast (+4.0%/yr); 129 active listings in the ZIP; 13 comparable units currently listed for rent nearby; rentals leasing fast (median 1d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 1,378 units permitted in DuPage County in 2024 (594 in 5+ unit buildings).
• Current owner paid $226k; 46% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.6% vs local median 2.4% in Elmhurst — 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 286 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?
• 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 A-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?