223 Montgomery St

Niantic, IL 62551

$48,500B

3 bd · 1.0 ba · 880 sqft · Built 1890 · Other · Active · 159 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $953/mo
• Mortgage (P&I): −$254
• Tax + insurance: −$192
• HOA: −$0
• Vac / Maint / Mgmt: −$200
• Net cashflow: $306/mo
• Annual: $3,677/yr
• Cap rate: 13.87%
• Cash-on-cash: 27.08%
• DSCR: 2.20
• 1% rule: 1.96%
• Cash to close: $13,580

Investor read

• This is a 3-bed/1.0-bath other listed at $48k.
• At list price, monthly cash flow is $306 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($953 rent vs $48k).
• It's been on market 159 days — a 12% lower offer ($43k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $43k (12.0% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($335 loan paydown + $752 appreciation (1.6% local appreciation)).
• Location reads 59/100 on livability (#1,038 in IL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment D, crime D-, amenities F.
• Sangamon Valley CUSD 9 (rural): math 10% / reading 27% proficiency, ranked #432 of 620 in IL (top 70%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Sangamon Valley Primary School (177 students, 0% FRL); Sangamon Valley Middle School (math 8% / reading 22%, grade F, #510 of 665 statewide, top 78%, 150 students, 0% FRL); Sangamon Valley High School (math 8% / reading 17%, grade F, #506 of 693 statewide, top 74%, 180 students, 0% FRL) — zoned schools average 0% FRL vs 33% district-wide (33 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: property tax is 4.2% of price; built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 63 units permitted in Macon County in 2024 (0 in 5+ unit buildings).
• Macon County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $16k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (1.6% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 159 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1890 — 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?
• 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 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?
• 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.