1412 Broadway St #1412

Blue Island, IL 60406

$235,000D

2 bd · 2.5 ba · 2,127 sqft · Built 2008 · Condo · Active · 188 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,550/mo
• Mortgage (P&I): −$1,232
• Tax + insurance: −$818
• HOA: −$230
• Vac / Maint / Mgmt: −$535
• Net cashflow: $-266/mo
• Annual: $-3,192/yr
• Cap rate: 4.93%
• Cash-on-cash: -4.85%
• DSCR: 0.78
• 1% rule: 1.08%
• Cash to close: $65,800

Investor read

• This is a 2-bed/2.5-bath condo listed at $235k.
• At list price, monthly cash flow is $-266 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $188k (20.0% below list).
• Meets the 1% rule at list price ($3k rent vs $235k).
• It's been on market 188 days — a 12% lower offer ($207k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $188k (20.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#159 in IL, #2,964 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: employment C-, crime F, amenities D-.
• Chsd 218 (suburban): math 14% / reading 20% proficiency, ranked #454 of 620 in IL (top 73%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Burr Oak Academy (318 students, 0% FRL); Calumet Elem School (math 24% / reading 24%, grade F, #332 of 665 statewide, top 55%, 310 students, 0% FRL); A B Shepard High Sch (Campus) (math 16% / reading 25%, grade F, #350 of 693 statewide, top 51%, 1,973 students, 0% FRL).
• Watch-outs: property tax is 3.7% of price.
• Market conditions: 44 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 6,272 units permitted in Cook County in 2024 (4,658 in 5+ unit buildings).
• Cap rate 4.9% vs local median 6.6% in Blue Island — 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?
• It's been on market 188 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• 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?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?