4707 Fairview Ave

Downers Grove, IL 60515

$359,999D+

2 bd · 1.0 ba · 1,176 sqft · Built 1960 · SingleFamily · Pending · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,662/mo
• Mortgage (P&I): −$1,888
• Tax + insurance: −$304
• HOA: −$0
• Vac / Maint / Mgmt: −$559
• Net cashflow: $-89/mo
• Annual: $-1,066/yr
• Cap rate: 6.00%
• Cash-on-cash: -1.06%
• DSCR: 0.95
• 1% rule: 0.74%
• Cash to close: $100,800

Investor read

• This is a 2-bed/1.0-bath single-family listed at $360k.
• At list price, monthly cash flow is $-89 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $344k (4.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $266k (26.0% below list).
• It's been on market 45 days — a 3% lower offer ($349k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $266k (26.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#24 in IL, #452 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: cost of living F.
• Chsd 99 (suburban): math 46% / reading 46% proficiency, ranked #66 of 620 in IL (top 11%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lester Elem School (554 students, 0% FRL); Herrick Middle School (math 24% / reading 24%, grade F, #332 of 665 statewide, top 55%, 666 students, 0% FRL); Comm H S Dist 99 - North H S (math 53% / reading 52%, grade C-, #34 of 693 statewide, top 5%, 2,138 students, 0% FRL).
• Market conditions: Rents rising fast (+7.6%/yr); 74 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals leasing fast (median 1d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 1,378 units permitted in DuPage County in 2024 (594 in 5+ unit buildings).
• 4 sale attempts; this cycle's ask has dropped $19k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $65k; list at $360k implies a 454% gain — meaningful room to come down on a strong offer.
• Cap rate 6.0% vs local median 3.0% in Downers Grove — 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.

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?
• It's been on market 45 days. Have you received any prior offers? Is the seller open to a 26% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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 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?
• 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.