Deal Analysis for an Illinois single family property (7 of 30)

[Marshall Shen]

Hi there,

I'm doing a 30-day deal analysis challenge where I analyze one deal per day. This is my 7th day :)

I analyzed a deal in college town (Urbana, IL), and assume a reasonable rent, and it passed 1% rule.

Based on the asking price, I estimated it will generate a positive annual cash-on-cash return, assuming 20% downpayment. Has anyone have experience in rent-and-hold in college town market? Any touchas in those markets?


The detailed analysis can be found here: https://bit.ly/3eapF4l

Thank ahead for reviewing!

[Quentin McNew]

@Marshall Shen I would be EXTREMELY careful of Champaign-Urbana campus housing. Out of town private equity and MASSIVE AMOUNTS of oversupply of apartments being built from incentives (opportunity zones, etc)........ instead of logical supply and demand reasons to build. City approves new builds if meets building requirements, zoning, etc, but they don't tell people how to run business. VACANCY INCREASING and PRICE DROPS seems inevitable here at this point, but the numbers and time will let us know for sure. Here is interesting article last year on Champaign, IL here. https://www.news-gazette.com/news/local/housing/tom-kacich-apartment-landlords-call-for-lower-tax-assessments-amid/article_b8b70990-e3b7-5f57-bd2b-a9a0689150a5.html