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7844 S. Ellis Ave. Opportunity - 39-Unit Apartment Building

Chicago, IL, 60619
See on the map $2,850,000
  • EquityBuild Inc. Property
  • EquityBuild Inc. Property
  • EquityBuild Inc. Property

Property Summary

This stately brick building is in excellent condition. It received a full gut rehab around 2009, and it has been meticulously maintained ever since.

The units are very large and pristine, and will not require any renovation at all. They feature good closet space, granite kitchen countertops and individual forced air heating. There are hardwood floors throughout.

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.

More Information

Proposed Terms

Property Type
39 units
Refers to the kind of property, including the number of units in the building.
Total Purchase Price
$2,850,000
The combined price to buy the building plus estimated building renovation costs.
Projected Cash Outlay
$611,559
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)
9.97%
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 3
21.97%
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 3 is once the property has reached full stabilization, and the building is fully rented.
Avg. Internal Rate of Return, Year 7
34.73%
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)
2- 1BR/1BA, 21- 2BR/1BA, 16- 3BR/1BA
This describes how many units contain a specified number of bedrooms and bathrooms.
Monthly Gross Income (per unit)
$750-850, $850-1,000, $950-1,100
The range of monthly rents that will be charged to tenants in each unit configuration.
Gross Potential Rent (annual/monthly)
$463,497/ $38,625
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
$27,725
The annual tax amount for the property.
Leasing Commissions
$5,775
No Description found!
Insurance
$11,700
This is the estimated annual cost for insuring the property.
Gas - Heat
$13,638
This is the estimated cost for these utilities, based on individual properties.
Electric
$2,721
This is the estimated cost for these utilities, based on individual properties.
Water
$21,000
This is the estimated cost for these utilities, based on individual properties.
Trash
$1,800
This is the estimated cost for these utilities, based on individual properties.
Snow Removal/Landscaping
$1,950
No Description found!
Pest Control
$480
This is the estimated cost for these utilities, based on individual properties.
Legal
$1,950
No Description found!
Repairs and Maintenance
$31,200
The estimated cost for repairs and maintenance within a year.
G and A
$7,800
No Description found!
Management Fee – 5%
$21,154
No Description found!
Net Operating Income (annual/monthly)
$274,191/ $22,849
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)
$92,524/ $7,710
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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