221 Mckinley St

Hooppole, IL 61258

$68,500A-

3 bd · 1.0 ba · 1,688 sqft · Built 1917 · Other · Active · 178 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,200/mo
• Mortgage (P&I): −$359
• Tax + insurance: −$121
• HOA: −$0
• Vac / Maint / Mgmt: −$252
• Net cashflow: $467/mo
• Annual: $5,607/yr
• Cap rate: 14.48%
• Cash-on-cash: 29.24%
• DSCR: 2.30
• 1% rule: 1.75%
• Cash to close: $19,180

Investor read

• This is a 3-bed/1.0-bath other listed at $68k.
• At list price, monthly cash flow is $467 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $68k).
• It's been on market 178 days — a 12% lower offer ($60k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $60k (12.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($474 loan paydown + $2k appreciation (3.0% local appreciation)).
• Location reads 58/100 on livability (#1,133 in IL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Annawan CUSD 226 (rural): math 30% / reading 35% proficiency, ranked #429 of 919 in IL (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Annawan Grade School (math 27% / reading 32%, grade F, #658 of 2,056 statewide, top 35%, 247 students, 0% FRL); Annawan High School (math 30% / reading 10%, grade F, #357 of 693 statewide, top 54%, 105 students, 0% FRL) — zoned schools average 0% FRL vs 22% district-wide (22 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1917 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 32 units permitted in Henry County in 2024 (0 in 5+ unit buildings).
• Henry County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 7 sale attempts since 3y ago; this cycle's ask is 128% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $18k; list at $68k implies a 270% gain — meaningful room to come down on a strong offer.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 178 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1917 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 F 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.
• 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.