1518 Melrose Ave · Waukegan, IL 60085

$299,900

5 bd · 2.0 ba · 1,437 sqft · SingleFamily public records · 8 Days on market

Built 1910 Est $233k · 29% over

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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 +15.7/30.0
• DSCR +4.8/10.0
• 1% rule +4.3/10.0
• Livability +3.8/5.0
• Rent growth +3.3/5.0
• Condition / age +2.5/5.0
• Schools +0.8/10.0
• ARV discount +0.0/15.0
• Appreciation +0.0/10.0

Listing remarks

* * * Multiple offers received. Seller is asking for Highest & Best offers by 6pm on Sunday, June 14. Appraisal Gap Coverage would be helpful * * * Recently rehabbed 4 bedroom & 2 bathroom with 1-car detached garage. 3 bedrooms & 1 bathroom on main floor. Living room, dining room, & all 3 bedrooms with hardwood floors. Full finished basement with a family room, rec room, 4th bedroom, & 2nd full bathroom. Enclosed front porch. Large fenced back yard. Come visit your new home today!!

Key facts

• Hardwood floors
• Enclosed front porch
• Garage

Tags

• HARDWOOD FLOORS
• FULL FINISHED BASEMENT
• ENCLOSED FRONT PORCH
• LARGE FENCED BACK YARD

Property features AI

Finance

• Other: Ownership is fee simple; Not currently leased
• HOA & community: No master association fee required

Exterior

• Parking: Detached garage (garage owned) with brick driveway; Total of 1 parking space
• Utilities: Public water; Public sewer
• Home design: Detached single-family home; One-story layout; Rehab projects completed in 2026; Property over 100 years old
• Construction: Aluminum and vinyl siding; Asphalt roof; Finished below-grade living area
• Exterior features: Curbs, sidewalks, street lights and paved streets; Lot less than 0.25 acre

Interior

• Kitchen: Range; Microwave; Dishwasher; Refrigerator
• Bedrooms: Three bedrooms on the main level; One additional bedroom in the basement (can be used as a 4th bedroom)
• Flooring: Hardwood flooring throughout main living areas and bedrooms; Vinyl flooring in basement recreation and family rooms and basement bedroom
• Bathrooms: Two full bathrooms; Basement contains a bathroom; Separate shower
• Heating & cooling: Natural gas forced air heating; Central air conditioning
• Interior features: First-floor bedroom and first-floor full bath; Finished full basement; Nine total rooms
• Laundry & utility: In-unit laundry with gas dryer hookup and utility sink

What this means for you Summary

Snapshot

• This is a 5-bed/2.0-bath single-family listed at $300k.

Deal economics

• At list price, monthly cash flow is $131 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $279k (7.0% below list).
• Recommended offer: $279k (7.0% below list) — sets the bar for 1% rule.
• Cap rate 6.8% vs local median 4.6% in Waukegan — 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 75/100 on livability (#216 in IL, #4,074 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: employment C-, crime D, schools F.
• Waukegan CUSD 60 (suburban): math 7% / reading 10% proficiency, ranked #587 of 620 in IL (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 66% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+3.2%/yr); 86 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 948 units permitted in Lake County in 2024 (424 in 5+ unit buildings).
• At $2,790/mo this rent would consume 50% of the median local household income ($67k/yr) (locally 2742% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Lake County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 11y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $117k; list at $300k implies a 156% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $278,963 (7.0% below list)

Questions for the listing agent

1. Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. 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?
5. 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?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 0.93% ✗
• Cap rate: 6.82%
• Cash-on-cash: 1.88%
• DSCR: 1.08
• GRM: 9.0

CMA / ARV

• ARV (on-the-fly): $232,794
• Comps found: 7

Show comp detail 7 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
108 S Fulton Ave	0.16mi	4/2.5 (-1)	1,365 (-5%)	15mo	$269,000	$197	64
201 Dorchester Ct	0.45mi	4/2.0 (-1)	1,419 (-1%)	22mo	$222,000	$156	54
1508 W Monroe St	0.51mi	4/2.0 (-1)	1,444 (+0%)	24mo	$210,000	$145	51
419 S Lewis Ave	0.32mi	4/1.0 (-1)	1,287 (-10%)	16mo	$208,000	$162	46
2209 Melrose Ave	0.53mi	4/2.0 (-1)	1,632 (+14%)	3mo	$265,000	$162	45
616 Bluff St	0.56mi	4/2.0 (-1)	1,628 (+13%)	20mo	$265,900	$163	30
524 Archer Ave	0.59mi	4/2.0 (-1)	1,628 (+13%)	21mo	$155,000	$95	28

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.24% rent growth · sell at horizon

5-year hold

• IRR: -13.0%
• Equity multiple: 0.53×
• Total profit: $-39,519
• Equity at exit: $44,716

10-year hold

• IRR: -3.7%
• Equity multiple: 0.75×
• Total profit: $-20,692
• Equity at exit: $25,930

Cash invested: $83,972 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 43 Moderately Tenant-Leaning
• State Illinois: 43 Moderately Tenant-Leaning · D+7
• County: — inherits STATE
• City: — inherits STATE

Chicago RTLO is among the strongest tenant ordinances in the Midwest; downstate is more landlord-friendly.

Methodology + full state rankings →

ZIP-level market 60085

• Rents YoY: 3.2%
• Active inventory: 86
• Price-to-rent: 9.0×

Monthly cashflow live

• Estimated rent: $2,790 medium
• Mortgage (P&I): −$1,573
• Tax est. 1.5%: −$375 /mo · $4,498/yr
• Insurance: −$125
• HOA: −$0
• Vacancy / Maint / Mgmt: −$586
• Net cashflow: $131

Break-even live

Break-even rent $2,623

Max offer price $299,900

Occupancy floor 90%

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: $74,975
• Closing costs: $8,997
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
708 Keller Ave Waukegan, IL	4.0	2.0	1800	$4,500	$2.50	1d	1	1.03mi

Listing history 6 events

1. 2026-06-18
   days on market $299,900 Active 8 DOM
2. 2026-06-17
   days on market $299,900 Active 7 DOM
3. 2026-06-16
   days on market $299,900 Active 6 DOM
4. 2026-06-15
   days on market $299,900 Active 5 DOM
5. 2026-06-13
   remarks 503-char remark
6. 2026-06-13
   listed $299,900 Active 3 DOM

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥97°F today · 14 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $33,476
• − Mortgage interest: −$16,799
• − Property taxes: −$4,498
• − Insurance: −$1,500
• − Repairs & maintenance: −$2,678
• − Management: −$2,678
• − Depreciation: −$8,724
• Taxable loss: −$3,402
• Est. tax savings @ 24.0%: +$816
• After-tax cash flow: $2,392/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: Waukegan CUSD 60
• NCES district ID: 1741250
• Math proficiency: 7% ▼ -8.00%
• Reading proficiency: 10% ▼ -8.00%
• Median HH income: $43,248
• Composite: 7.73/100
• National rank: #9939
• State rank: #587 of 620 in IL

Livability — Waukegan

• Score: 75/100
• State rank: #216
• US rank: #4074

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Waukegan, IL
• County: Lake County · 591,991 people
• City population: 99,634
• Metro: Chicago-Naperville-Elgin, IL-IN-WI
• Population (ZIP): 72,341
• Household income: $66,793
• Rent vs Own: 51.8% rent · 48.2% own
• Severe rent burden: 2742.0

Population outlook (Lake County) Hauer SSP2

• Today (2025): 700,217 people
• By 2030: 693,290 · -1.0%
• By 2040: 673,588 · -3.8%
• By 2050: 643,556 · -8.1%
• By 2075: 562,792 · -19.6%
• By 2100: 457,715 · -34.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.57)
• Race & ethnicity: Hispanic / Latino 62% Two or more races 24% Black 14% White 14% Asian 6% Native American 2%
• Hispanic origin (detail): Mexican 51% Puerto Rican 3%
• Common ancestry: Romanian 1% British 1% Portuguese 1%
• Foreign-born: 34% · Canada, Jamaica
• Languages at home: 39% English-only · Spanish 54% Tagalog/Filipino 2% Other Asian/Pacific 1%

Political lean MEDSL · Lake

• 2024 margin: Strong D (+20.8) · D 59.7% · R 38.9% · Other 1.4%
• 2008→2024 swing: +1.1pp toward D · 2008: 19.6pp · 2024: 20.8pp
• All cycles: 2024: D+20.8 2020: D+24.1 2016: D+20.3 2012: D+8.1 2008: D+19.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -114.04%
• Current HPI: 203.6304
• Rent YoY: ▲ 3.24%
• Metro: Chicago-Naperville-Elgin, IL-IN-WI
• State GDP YoY: ▲ 1.59%
• F500 in state: 60

Industry mix (Fortune 500 HQ in IL)

Industry	F500 HQs	Revenue
▸Insurance	4	$201B
▸Consumer Goods	4	$87B
▸Industrial Machinery	3	$64B
▸Healthcare	2	$55B
▸Retail / Pharmacy	1	$148B
▸Agriculture / Food	1	$86B

Price history

+566.4% since first listed

7 events — show timeline

• 2026-06-09 Listed $299,900 MRED as Distributed by MLS Grid
• 2015-07-20 Listing Removed — MRED as Distributed by MLS Grid
• 2015-06-04 Price Changed — MRED as Distributed by MLS Grid
• 2015-03-31 Listed — MRED as Distributed by MLS Grid
• 2001-07-06 Sold (Public Records) $117,000 Public Records
• 1990-05-01 Sold (Public Records) $63,900 Public Records
• 1985-07-01 Sold (Public Records) $45,000 Public Records

Property tax history

-17.5%/yr

Latest (2024): $161 · -97.1% YoY. Source: county tax records.