1975 Shepard

Opdyke, IL 62872

$26,000D+

6 bd · 1.0 ba · 1,440 sqft · Built 1975 · SingleFamily · Pending · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,234/mo
• Mortgage (P&I): −$136
• Tax + insurance: −$43
• HOA: −$0
• Vac / Maint / Mgmt: −$259
• Net cashflow: $796/mo
• Annual: $9,547/yr
• Cap rate: 43.01%
• Cash-on-cash: 131.14%
• DSCR: 6.83
• 1% rule: 4.75%
• Cash to close: $7,280

Investor read

• This is a 6-bed/1.0-bath single-family listed at $26k. Condition is rated poor.
• At list price, monthly cash flow is $796 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $26k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $960 of equity ($180 loan paydown + $780 appreciation (3.0% local appreciation)).
• Location reads 60/100 on livability (#948 in IL) — a middle-class / working-renter tenant base. Strengths: cost of living A+, employment B+; Watch: schools C-, crime D-, amenities F.
• Mt Vernon Twp Hsd 201 (town): math 13% / reading 16% proficiency, ranked #532 of 620 in IL (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 4 active listings in the ZIP; 6 units permitted in Jefferson County in 2024 (0 in 5+ unit buildings).
• Jefferson County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $7k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Roof — Significant damage and missing shingles.
• Major: Exterior walls — Structurally compromised and in poor condition.
• Major: Flooring — Damaged and unstable, likely unsafe to walk on.
• Major: Interior walls and paint — Paint peeling and walls damaged, requiring extensive repair or replacement.
• Major: Landscaping — Overgrown and unkempt, with debris scattered around the property, requiring significant work to improve curb appeal.