None

Elgin, IL 60120

$460,000C+

6 bd · 3.0 ba · — sqft · Built — · SingleFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $10,220/mo
• Mortgage (P&I): −$2,412
• Tax + insurance: −$829
• HOA: −$0
• Vac / Maint / Mgmt: −$2,146
• Net cashflow: $4,832/mo
• Annual: $57,980/yr
• Cap rate: 18.90%
• Cash-on-cash: 45.02%
• DSCR: 3.00
• 1% rule: 2.22%
• Cash to close: $128,800

Investor read

• This is a 6-bed/3.0-bath single-family listed at $460k.
• At list price, monthly cash flow is $5k ($58k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($10k rent vs $460k).
• It's been on market 15 days — a 2% lower offer ($453k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $453k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k 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 soft (-2.4%/yr); 47 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 1,944 units permitted in Kane County in 2024 (357 in 5+ unit buildings).
• 5 sale attempts since 17y ago; this cycle's ask is 18% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $394k; 17% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $129k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 18.9% 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.
• At $10,220/mo this rent would consume 149% of the median local household income ($82k/yr) (locally 1349% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• 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.