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Welcome back to The Wealth Wagon everyone, I hope you all had an amazing weekend and are ready for a very productive week. Today we will be discussing another real estate market, one in the city of Illinois. Enjoy!

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Real Estate Investing

Market Snapshot:

Peoria, Illinois
The Peoria real estate market is experiencing steady activity, with the median home price at $165,000, reflecting a modest 1.2% year-over-year growth. Peoria's affordability compared to national averages continues to attract first-time buyers and investors. The area benefits from its strong healthcare and manufacturing industries, including major employers like Caterpillar, which anchor economic stability. Active listings are up 5% year-over-year, providing buyers with more options, although higher interest rates are slowing sales slightly.

Median Home Price: $165,000
YoY Price Growth: 1.2%
Active Listings: 1,200

Deal Of The Day:

Duplex Near West Peoria
Price: $495,000
Units: 2 (3-Bed, 2-Bath each)
Monthly Rental Income: $3,400
Cap Rate: 8%
Located near the West Peoria neighborhood, this duplex offers high rents averaging $1,700 per unit. Its proximity to schools and shopping centers ensures consistent tenant demand. This property is a great choice for investors looking for appreciation over cash flow as at first this property is not likely to cash flow due to it’s high price.

Deal Rating: 7/10

This deal gets a 7/10, the main reason for it not getting a higher rating is the fact that the property doesn’t immediately cash flow and although this isn’t a big issue as the appreciation of the property will be the portion making you the most, it is a riskier investment as the property will not begin to cash flow until 2-4 years after purchase.

Real Estate Tip:

Investment Strategy:

Equity Sharing for Low-Cost Entry
Equity sharing is a creative strategy where an investor partners with another individual (often a tenant or family member) to buy a property. The investor provides the down payment, and the partner lives in the home and pays the mortgage. When the property sells, profits are shared based on ownership stakes.
Example: A duplex in Peoria purchased for $250,000 could involve a 50/50 split, where the tenant covers living expenses and shares future equity gains, reducing the upfront cost for the investor.

Current Interest Rates:

Peoria, Illinois
30-Year Fixed Residential: 6.8%
15-Year Fixed Residential: 6.1%
Commercial Rates: Starting at 6.5%
Interest rates in Peoria remain slightly above the national average due to regional lending conditions. Higher rates have increased demand for rentals, making multifamily properties a solid choice for cash flow-focused investors.

How Rising Interest Rates Shape Investment Opportunities

With mortgage rates hovering near 7% or more, some buyers are stepping back, creating opportunities for savvy investors. Properties that have lingered on the market for 60+ days are ripe for negotiation, often leading to 5-10% discounts on asking prices. Additionally, rental demand is surging as potential buyers delay homeownership, making multifamily units particularly attractive. Savvy investors can also consider interest-only loans to reduce monthly payments and maximize short-term cash flow while market conditions stabilize.

Economic Conditions

Peoria boasts a 4.8% unemployment rate, slightly lower than the state average. This is driven by the resilience of the manufacturing and healthcare sectors, which collectively employ over 40% of the workforce. Inflation in the Midwest sits at 1.5%, slightly below the national rate, providing a stable backdrop for real estate investment. However, rising construction costs (up 3.8% year-over-year) are challenging new developments, keeping inventory relatively tight.

Market Rating: 6/10

This market has an extremely low entry cost compared to other markets with some properties being under $100k which is unheard of in other areas of the U.S.. With that said this market does have slightly lower interest rates but the appreciation rate of the market is zero to none. Great for investors just starting out but isn’t the greatest for actually generating significant wealth or even cashflow.

Key Takeaways:

• Market Snapshot: Peoria, IL, offers affordable housing with a median price of $165,000 and a growing inventory.

• Deal of the Day: A duplex near West Peoria with an 8% cap rate and $3,400 monthly income is ideal for cash flow.

• Tip: Location is key—proximity to major employers like OSF Healthcare ensures long-term value.

• Strategy: Equity sharing lowers entry costs and diversifies risk.

• Interest Rates: Residential rates are at 6.8%, driving rental demand.

• Economic Impact: slightly lower unemployment but strong job markets make Peoria a steady investment hub.

That’s All For Today

I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.

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Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.