3 Cedar Dr

Macomb, IL 61455

$89,900F

3 bd · 2.0 ba · 702 sqft · Built 1975 · Other · Active · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $893/mo
• Mortgage (P&I): −$471
• Tax + insurance: −$331
• HOA: −$100
• Vac / Maint / Mgmt: −$187
• Net cashflow: $-198/mo
• Annual: $-2,373/yr
• Cap rate: 3.65%
• Cash-on-cash: -9.43%
• DSCR: 0.58
• 1% rule: 0.99%
• Cash to close: $25,172

Investor read

• This is a 3-bed/2.0-bath other listed at $90k.
• At list price, monthly cash flow is $-198 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $71k (21.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $89k (0.7% below list).
• It's been on market 28 days — a 2% lower offer ($89k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $71k (21.5% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $622 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 70/100 on livability (#379 in IL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing B; Watch: crime D, amenities D, commute F.
• Macomb CUSD 185 (town): math 19% / reading 26% proficiency, ranked #410 of 620 in IL (top 66%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Macomb Junior High School (math 21% / reading 32%, grade F, #312 of 665 statewide, top 48%, 308 students, 0% FRL); Macomb Senior High School (math 27% / reading 37%, grade F, #157 of 693 statewide, top 25%, 622 students, 0% FRL) — zoned schools average 0% FRL vs 40% district-wide (40 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: property tax is 3.9% of price.
• Market conditions: 135 active listings in the ZIP.
• Cap rate 3.7% vs local median 6.2% in Macomb — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?