514 N Posey St

Reynolds, IL 61279

$169,900F

3 bd · 3.0 ba · 1,200 sqft · Built 1950 · SingleFamily · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,231/mo
• Mortgage (P&I): −$891
• Tax + insurance: −$295
• HOA: −$0
• Vac / Maint / Mgmt: −$259
• Net cashflow: $-213/mo
• Annual: $-2,562/yr
• Cap rate: 4.79%
• Cash-on-cash: -5.38%
• DSCR: 0.76
• 1% rule: 0.72%
• Cash to close: $47,572

Investor read

• This is a 3-bed/3.0-bath single-family listed at $170k.
• At list price, monthly cash flow is $-213 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $132k (22.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $123k (27.5% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $123k (27.5% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($1k loan paydown + $8k appreciation (4.6% local appreciation)).
• Location reads 65/100 on livability (#660 in IL) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Rockridge CUSD 300 (rural): math 25% / reading 29% proficiency, ranked #257 of 620 in IL (top 42%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Taylor Ridge Elem School (179 students, 0% FRL); Rockridge Jr High School (math 25% / reading 26%, grade F, #322 of 665 statewide, top 49%, 233 students, 0% FRL); Rockridge High School (math 42% / reading 42%, grade F, #76 of 693 statewide, top 12%, 343 students, 0% FRL) — zoned schools average 0% FRL vs 16% district-wide (16 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 4 active listings in the ZIP; 116 units permitted in Rock Island County in 2024 (50 in 5+ unit buildings).
• Rock Island County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $115k; 48% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 4, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Built in 1950 — 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.
• 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?
• 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.