2 bd · 2.0 ba ·
1,152 sqft ·
Built 1988
· Other
· Active
· 38 DOM
Cashflow @ list (25.0% down · 7.5%)
Estimated rent
$2,043/mo
Mortgage (P&I)
−$551
Tax + insurance
−$175
HOA
−$0
Vac / Maint / Mgmt
−$429
Net cashflow
$888/mo
Annual
$10,659/yr
Cap rate
16.44%
Cash-on-cash
36.26%
DSCR
2.61
1% rule
1.95%
Cash to close
$29,400
Investor read
This is a 2-bed/2.0-bath other listed at $105k.
At list price, monthly cash flow is $888 ($11k/yr) — positive.
The deal already cash-flows at list — no discount required.
Meets the 1% rule at list price ($2k rent vs $105k).
It's been on market 38 days — a 3% lower offer ($102k) is reasonable based on typical stale-listing flexibility.
Recommended offer: $102k (3.0% below list) — sets the bar for market timing.
Local home prices are declining (-3.0%/yr); year-one equity from $726 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
Location reads 83/100 on livability (#47 in IL, #975 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+; Watch: health & safety C-, schools D-.
SD U-46 (suburban): math 19% / reading 20% proficiency, ranked #386 of 620 in IL (top 62%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
Market conditions: Rents rising (+3.7%/yr); 89 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
At projected returns (-3.0% appreciation + 3.7% rent growth), your $29k cash investment doubles in ~4 years — after that, you're playing with house money.
Cap rate 16.4% vs local median 3.4% in Elgin — 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
It's been on market 38 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
Schools are D-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.
CashFlowRE · CFR-SZT8B06MTKV5XP
· Data 3 h agocashflowre.app · 2026-05-29