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638 N. Avers Ave. Opportunity – 13-Unit Apartment Building

Chicago, IL, 60624
See on the map $1,300,000
  • EquityBuild Inc. Property
  • EquityBuild Inc. Property

Property Summary

This stately brick building features large 2 and 3-bedroom apartments.

Three of the units have already received fresh turns with granite counter tops, tile floors in the kitchen and bathrooms and refinished hardwood floors throughout the rest of the apartment. The other units will be brought up to the same level as part of stabilization.

This well-maintained building's electrical and plumbing systems and its roof are all newer.

The property offers an on-site laundry. All the units have separated utilities, so each pays its own heat, reducing the operating cost for the owner. The building's porches are steel.

Seven of the building's thirteen units will be targeted for CHA voucher tenants.

The property is situated in Chicago’s desirable Humboldt Park neighborhood.

Set on a tree-lined residential street, the property is just four blocks from historic 187-acre Garfield Park with its lagoons, baseball and soccer fields, tennis and basketball courts, swimming pool, playgrounds and ice skating rink. The park's Golden Dome houses an Olympic-sized gymnasium, gymnastic and fitness centers, a boxing ring, and a theater.

The building is near restaurants, shops, schools and churches, and very convenient to public transportation. It is easy walking distance to the Pulaski and Conservatory/Central Park Drive Green Line El stops, as well as to the Kedzie metrarail station. There are also multiple bus stops nearby.

Our analysis indicates that the property will generate more than enough revenue to cover mortgage payments on the building as well as all of the property's operating expenses, and still return positive cash flow. This is why we consider this multi-unit building to be an excellent investment opportunity.

The property is priced at $1,300,000.

More Information

Proposed Terms

Property Type
13 units
Refers to the kind of property, including the number of units in the building.
Total Purchase Price
$1,300,000
The combined price to buy the building plus estimated building renovation costs.
Projected Cash Outlay
$308,907
The amount of cash out of pocket that will be required to complete the purchase. Includes down payment and building rehab costs.
Full Stabilized Cap Rate (Based on Purchase Price)
9.18%
No Description found!
Projected Refi/Resale Cap Rate Used in Model
8.00%
No Description found!
Area Market Cap Rate
8.00%
No Description found!
Cash on Cash Return, Year 2
12.88%
Cash on cash return is the ratio of annual before-tax cash flow to the total amount of cash invested, shown as a percentage. Year 2 is once the property has reached full stabilization, and the building is fully rented.
Avg. Internal Rate of Return, Year 7
25.51%
The average value of the stream of Cash on Cash returns produced by the property through Year 7. This is the rate of return that would be required to equal the benefit of owning the property.
Proposed Unit Configuration (BRs/BAs)
10- 2BR/1BA, 3- 3BR/1BA
This describes how many units contain a specified number of bedrooms and bathrooms.
Monthly Gross Income (per unit)
$950-1,150, $1,200-1,400
The range of monthly rents that will be charged to tenants in each unit configuration.
Gross Potential Rent (annual/monthly)
$176,213/ $14,684
The total amount of rent the property can generate, provided all units are filled for the full year, and the mix of tenants between subsidized and non-subsidized conforms to projections.
Real Estate Taxes
$9,738
The annual tax amount for the property.
Leasing Commissions
$2,562
No Description found!
Insurance
$3,900
This is the estimated annual cost for insuring the property.
Gas - Heat
$250
This is the estimated cost for these utilities, based on individual properties.
Electric
$325
This is the estimated cost for these utilities, based on individual properties.
Water
$8,368
This is the estimated cost for these utilities, based on individual properties.
Trash
$132
This is the estimated cost for these utilities, based on individual properties.
Snow Removal/Landscaping
$650
No Description found!
Pest Control
$0
This is the estimated cost for these utilities, based on individual properties.
Legal
$650
No Description found!
Repairs and Maintenance
$7,800
The estimated cost for repairs and maintenance within a year.
G and A
$2,600
No Description found!
Management Fee – 5%
$8,031
No Description found!
Net Operating Income (annual/monthly)
$115,619/ $9,635
The amount of money generated by the property, less the regular expenses required to keep it in operation. Does not include financial costs like mortgage payments.
Free Cash Flow (annual/monthly)
$39,790/ $3,316
The amount of money generated by the property after all associated expenses have been paid, including operating and financial costs.

EquityBuild Comments

EquityBuild is changing the real estate investing industry by proudly providing three unique, industry-leading guarantees on every property we sell. These guarantees are straightforward, clear and available to you so that the risks of past are now met with guarantees that are changing real estate investing from this day forward. Call Now!

Call 877-978-1869 to find out more.

EquityBuild Difference

EquityBuild is a client advocate in a real estate world where we build life-long relationships to create turn-key solutions that consistently deliver double-digit returns. Real estate investment opportunities are carefully selected based on EquityBuild’s proprietary econometric model that identifies properties with strong upside and minimal risk. To learn more about EquityBuild and how you can invest directly in real estate with expert guidance and no landlord hassles please call (877) 978-1869.

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