The property offers an on-site laundry.
23 of the building’s 39 units will be targeted for CHA voucher tenants.
The building is the nicest in its area, giving it strong appeal to potential tenants. Its outstanding condition and low level of deferred maintenance mean that capital expenditures will be minimal: the aluminum wrapping on the building's lintels will be cleaned and painted, there will be minor spot tuckpointing, and the furnaces will be serviced.
The property is situated in Chicago's desirable Greater Grand Crossing neighborhood. Its location offers the best of both worlds: livability and convenience.
Set on a tree-lined residential street, the property is part of a dynamic mix of single family homes and multi-family buildings. Beautiful 17-acre Grand Crossing Park is just at the end of the block, with its two gymnasiums, fitness center, woodshop and multi-purpose rooms, baseball and football fields, basketball and tennis courts, pool, spray pool and playground.
At the same time, the building is also just around the corner from the busy 79th Street retail corridor with its offering of restaurants, shops, schools and churches.
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 $2,850,000.
These numbers are for the first year of stabilized operation (year 2 of ownership) unless otherwise noted.
|Property Type||39 units|
|Total Purchase Price||$2,850,000|
|Projected Cash Outlay||$611,559|
|Full Stabilized Cap Rate (Based on Purchase Price)||9.97%|
|Projected Refi/Resale Cap Rate Used in Model||8.00%|
|Area Market Cap Rate||8.00%|
|Cash on Cash Return, Year 3||21.97%|
|Avg. Internal Rate of Return, Year 7||34.73%|
|Proposed Unit Configuration (BRs/BAs)||2- 1BR/1BA, 21- 2BR/1BA, 16- 3BR/1BA|
|Monthly Gross Income (per unit)||$750-850, $850-1,000, $950-1,100|
|Gross Potential Rent (annual/monthly)||$463,497/ $38,625|
|Real Estate Taxes||$27,725|
|Gas - Heat||$13,638|
|Repairs and Maintenance||$31,200|
|G and A||$7,800|
|Management Fee – 5%||$21,154|
|Net Operating Income (annual/monthly)||$274,191/ $22,849|
|Free Cash Flow (annual/monthly)||$92,524/ $7,710|
EquityBuild will handle all elements of this transaction to their successful conclusion. EquityBuild has tremendous experience in this area, having completed more than 600 transactions in the past 10 years. We provide the rehab, property management and the expertise needed to get the property financed and refinanced, resulting in a highly productive, cash flow producing investment property that will enhance your portfolio.