717 Railroad St

Beardstown, IL 62618

$49,900B-

3 bd · 1.0 ba · 594 sqft · Built 1925 · Other · Pending · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $907/mo
• Mortgage (P&I): −$262
• Tax + insurance: −$111
• HOA: −$0
• Vac / Maint / Mgmt: −$191
• Net cashflow: $344/mo
• Annual: $4,133/yr
• Cap rate: 14.58%
• Cash-on-cash: 29.58%
• DSCR: 2.32
• 1% rule: 1.82%
• Cash to close: $13,972

Investor read

• This is a 3-bed/1.0-bath other listed at $50k.
• At list price, monthly cash flow is $344 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($907 rent vs $50k).
• It's been on market 93 days — a 9% lower offer ($45k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $45k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.7%/yr); year-one equity from $345 of loan paydown is wiped out by about $828 of value loss. Plan a longer hold.
• Location reads 57/100 on livability (#1,164 in IL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime C-, amenities F, commute F.
• Beardstown CUSD 15 (town): math 3% / reading 5% proficiency, ranked #607 of 620 in IL (top 98%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 64% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Gard Elementary School (math 2% / reading 2%, grade F, #1,927 of 2,056 statewide, top 100%, 473 students, 0% FRL); Beardstown Jr/Sr High School (math 3% / reading 6%, grade F, #656 of 693 statewide, top 95%, 849 students, 0% FRL) — zoned schools average 0% FRL vs 64% district-wide (64 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 2 units permitted in Cass County in 2024 (0 in 5+ unit buildings).
• Cass County population projected at -28% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 28y ago; this cycle's ask has dropped $29k (37%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $42k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-1.7% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~4 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 93 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1925 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.