1936-1938 Patti Ln · Schererville, IN 46375

$397,000

2 bd · 1.0 ba · 832 sqft · MultiFamily public records · 4 Days on market

Built 1977 0.33 ac lot

---

Why this score? — see what drove the D- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +10.5/30.0
• ARV discount +7.5/15.0
• Schools +4.5/10.0
• Livability +3.4/5.0
• DSCR +3.0/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• 1% rule +2.3/10.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 2 units. confirmed

Listing remarks

Exceptional investment opportunity in a prime Schererville location near schools, a community park, and local amenities. This well-maintained duplex offers flexibility for an owner occupant or investor, with one unit currently owner-occupied and the other tenant occupied. Unit 1936 is a 2-bedroom, 1-bath ranch featuring an updated eat-in kitchen and living room. The tenant pays all utilities, providing a low maintenance income stream. Unit 1938 is a spacious 3-bedroom, 2.5-bath two-story home with an updated eat-in kitchen, living room, formal dining room, and family room. The main floor includes a laundry area and full bath. The upper level offers a primary bedroom with an ensuite bath and

Key facts

• 0.33 acre lot
• 2 garage spots
• Built 1977

Tags

• PRIME SCHERERVILLE LOCATION
• UPDATED EAT-IN KITCHEN
• DETACHED 1 CAR GARAGE
• STRONG RENTAL POTENTIAL

What this means for you Summary

Snapshot

• This is a 1×2bd/1ba + 1×3bd/2.5ba units multifamily listed at $397k.

Deal economics

• At list price, monthly cash flow is $-202 ($-2k/yr) — negative. Per door: $-101/mo.
• To cash-flow at today's rent, offer at most $361k (9.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $288k (27.4% below list).
• Recommended offer: $288k (27.4% below list) — sets the bar for 1% rule.
• Cap rate 5.7% vs local median 4.0% in Schererville — 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.

Location & tenants

• Location reads 68/100 on livability (#226 in IN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F, health & safety F.
• Lake Central School Corporation (suburban): math 45% / reading 54% proficiency, ranked #41 of 301 in IN (top 14%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Lake Central High School (math 46% / reading 74%, grade C+, #46 of 369 statewide, top 13%, 3,069 students, 23% FRL).
• Market conditions: 165 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals leasing fast (median 9d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,642 units permitted in Lake County in 2024 (14 in 5+ unit buildings).
• This rent runs 37% of the median local income ($93k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Lake County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.

Recommended offer $288,200 (27.4% below list)

Questions for the listing agent

1. 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?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
7. 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?
8. 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.
9. 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.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.73% ✗
• Cap rate: 5.68%
• Cash-on-cash: -2.18%
• DSCR: 0.90
• GRM: 11.5

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -19.9%
• Equity multiple: 0.30×
• Total profit: $-77,290
• Equity at exit: $59,194

10-year hold

• IRR: -13.0%
• Equity multiple: 0.24×
• Total profit: $-84,321
• Equity at exit: $34,325

Cash invested: $111,160 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 90 Strongly Landlord-Friendly
• State Indiana: 90 Strongly Landlord-Friendly · R+11
• County: — inherits STATE
• City: — inherits STATE

10-day pay-or-quit; landlord-favorable; preempted.

Methodology + full state rankings →

ZIP-level market 46375

• Active inventory: 165
• Price-to-rent: 24.8×

Monthly cashflow live

• Estimated rent: $2,882 medium
• Mortgage (P&I): −$2,082
• Tax from tax record: −$231 /mo · $2,773/yr
• Insurance: −$165
• HOA: −$0
• Vacancy / Maint / Mgmt: −$605
• Net cashflow: $-202

Break-even live

Break-even rent $3,137

Max offer price $361,388

Occupancy floor —

Sensitivity live

Price	-10% $23	-5% $-89	+0% $-202	+5% $-314	+10% $-426
Rent	-10% $-429	-5% $-315	+0% $-202	+5% $-88	+10% $26
Rate	-1.0pp $-2	-0.5pp $-101	base $-202	+0.5pp $-304	+1.0pp $-409

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
1× unit	2	1	$1,333
1× unit	3	2.5	$1,549
Total (2 units)			$2,882

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $99,250
• Closing costs: $11,910
• Reserves months: —
• Total cash needed: —

Rent comps 7 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1841 Austin Ave Schererville, IN	1.0	1.0	540	$1,025	$1.90	0d	1	0.52mi
1825 Austin Ave Schererville, IN	1.0	1.0	540	$1,040	$1.93	22d	1	0.55mi
1825 Austin Ave Schererville, IN	2.0	1.0	875	$1,235	$1.41	5d	1	0.55mi
1825 Austin Ave Unit 16 Schererville, IN	2.0	1.0	875	$1,235	$1.41	9d	1	0.55mi
1825 Austin Ave Unit 17 Schererville, IN	1.0	1.0	540	$1,040	$1.93	26d	1	0.55mi
2615 Morningside Dr Crown Point, IN	2.0	1.0	1000	$1,475	$1.48	5d	1	1.48mi
2615 Morningside Dr Unit A4 Crown Point, IN	2.0	1.0	1000	$1,475	$1.48	26d	1	1.48mi

Listing history 2 events

1. 2026-04-26
   status Pending
2. 2026-04-22
   listed $397,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IN · Partial reset (capped growth)

• Current annual tax: $2,773 · $231/mo
• Projected year-2 tax: $3,074 · $256/mo
• Expected delta: +$301/yr (+$25/mo · 10.9%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥101°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 0% chance of damaging wind over 30 yrs
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $34,584
• − Mortgage interest: −$22,238
• − Property taxes: −$2,773
• − Insurance: −$1,985
• − Repairs & maintenance: −$2,767
• − Management: −$2,767
• − Depreciation: −$11,549
• Taxable loss: −$9,494
• Est. tax savings @ 24.0%: +$2,279
• After-tax cash flow: $-140/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Lake Central School Corporation
• NCES district ID: 1805450
• Math proficiency: 45% ▼ -9.00%
• Reading proficiency: 54% ▼ -11.00%
• Median HH income: $75,957
• Composite: 44.82/100
• National rank: #2736
• State rank: #41 of 301 in IN

Livability — Schererville

• Score: 68/100
• State rank: #226
• US rank: #9897

Category grades

Amenities F Commute F Cost of living A+ Crime A Employment A- Housing A+ Health & safety F User ratings B+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Schererville, IN
• County: Lake County · 422,878 people
• City population: 24,188
• Metro: Chicago-Naperville-Elgin, IL-IN-WI
• Population (ZIP): 24,188
• Household income: $93,160
• Rent vs Own: 17.0% rent · 83.0% own
• Severe rent burden: 283.0

Population outlook (Lake County) Hauer SSP2

• Today (2025): 484,026 people
• By 2030: 478,091 · -1.2%
• By 2040: 462,974 · -4.3%
• By 2050: 449,894 · -7.1%
• By 2075: 436,169 · -9.9%
• By 2100: 426,607 · -11.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (72%)
• Race & ethnicity: White 72% Hispanic / Latino 13% Two or more races 10% Black 7% Asian 4%
• Hispanic origin (detail): Mexican 11% Puerto Rican 1%
• Common ancestry: Romanian 15% Iranian 4% Italian 1%
• Foreign-born: 10% · Canada, Vietnam, South Korea
• Languages at home: 85% English-only · Spanish 6% Russian/Polish/Slavic 5% Vietnamese 2%

Political lean MEDSL · Lake

• 2024 margin: Lean D (+5.6) · D 52.1% · R 46.5% · Other 1.5%
• 2008→2024 swing: -28.6pp toward R · 2008: 34.3pp · 2024: 5.6pp
• All cycles: 2024: D+5.6 2020: D+15.1 2016: D+20.6 2012: D+31.0 2008: D+34.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -172.42%
• Current HPI: 204.9394
• Rent YoY: —
• Metro: Chicago-Naperville-Elgin, IL-IN-WI
• State GDP YoY: ▲ 2.90%
• F500 in state: 18

Industry mix (Fortune 500 HQ in IN)

Industry	F500 HQs	Revenue
▸Industrial Machinery	2	$37B
▸Healthcare	1	$177B
▸Pharmaceuticals	1	$45B
▸Metals / Steel	1	$18B
▸Agriculture	1	$17B
▸Packaging	1	$12B

Price history

2 events — show timeline

• 2026-04-26 Pending — NIRA MLS as Distributed by MLS Grid
• 2026-04-22 Listed $397,000 NIRA MLS as Distributed by MLS Grid

Property tax history

+0.6%/yr

Latest (2024): $2,773 · +2.7% YoY. Source: county tax records.