305 E North St

Mulberry Grove, IL 62262

$120,000D

1 bd · 1.0 ba · 1,200 sqft · Built 2004 · SingleFamily · Active · 42 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,011/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$245
• HOA: −$0
• Vac / Maint / Mgmt: −$212
• Net cashflow: $-76/mo
• Annual: $-911/yr
• Cap rate: 5.53%
• Cash-on-cash: -2.71%
• DSCR: 0.88
• 1% rule: 0.84%
• Cash to close: $33,600

Investor read

• This is a 1-bed/1.0-bath single-family listed at $120k.
• At list price, monthly cash flow is $-76 ($-911/yr) — negative.
• To cash-flow at today's rent, offer at most $107k (11.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $101k (15.8% below list).
• It's been on market 42 days — a 3% lower offer ($116k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $101k (15.8% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($830 loan paydown + $4k appreciation (3.1% local appreciation)).
• Location reads 58/100 on livability (#1,127 in IL) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Mulberry Grove CUSD 1 (rural): math 16% / reading 21% proficiency, ranked #732 of 919 in IL (top 80%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Mulberry Grove Elem School (math 17% / reading 27%, grade F, #940 of 2,056 statewide, top 49%, 165 students, 0% FRL); Mulberry Grove Jr High School (math 8% / reading 22%, grade F, #510 of 665 statewide, top 78%, 78 students, 0% FRL); Mulberry Grove Sr High School (math 10% / reading 10%, grade F, #528 of 693 statewide, top 82%, 111 students, 0% FRL) — zoned schools average 0% FRL vs 42% district-wide (42 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 7 active listings in the ZIP; 35 units permitted in Bond County in 2024 (0 in 5+ unit buildings).
• Bond County population projected at -23% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 3y 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.
• At projected returns (3.1% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$34k 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?
• It's been on market 42 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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?
• 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.