Rental Project

7528 S Aberdeen St, Chicago, IL 60620, USA

Bedrooms: 5, Bathrooms: 2.0, Sqft: 1808, Lot Size: 3500, Year Built: 1922
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Deal Summary

Initial Investment

Purchase Price
$30,000
Purchase Costs
$3,138
Rehab Costs
$50,000
Rehab Contingency (15%)
$7,500
Construction Holding Costs
$7,625
Total Project Costs
$98,263
Financing
($87,324)
Cash out of Pocket
$10,939

Property Value

After Repair Value (ARV)
$200,688
Annual Appreciation Rate
4.00%
Value at Project End
$244,168

Project Timing

Construction Time
3.0 Months
Rental During Rehab?
No
Income Starts in Month
4
Total Project Length
6 Years

Financial KPIs

Cash Flow (Year 1)
($3,683)
Cash-On-Cash Return (Year 1)
-33.67%
Internal Rate of Return (Project)
11.77%

Monthly Cash Flow (Starting Month 4)

Income

Gross Scheduled Rents
$1,500
Scheduled Other Income
$0
Vacancy Loss
($75)
Effective Monthly Income
$1,425

Expenses

Property Taxes
($100)
Property Management
($143)
Utilities
($0)
CapEx
Using average monthly
($0)
Total Expenses
($242)

Cash Flow

Effective Monthly Income
$1,425
Expenses
($242)
Loan Payment
Does not include origination
($433)
Monthly Cash Flow
$750

Cash-on-Cash Analysis (Year 1)

Income & Expenses

Income (9 Months)

Gross Scheduled Rents
$13,500
Gross Other Income
$0
Vacancy Loss
($675)
Effective Total Income
$12,825

Expenses

Property Taxes
($1,197)
Property Management
($1,283)
Utilities
$0
CapEx
Using actual
$0
Total Expenses
($2,480)

Financing

AQ/REhab
($3,157)
Rehab only
($4,169)
Refinance
($6,702)
Total Mortgage Payment
Includes all financing costs
($14,028)

Cash-on-Cash Analysis

Cash Flow (Year 1)

Total Income
$12,825
Expenses
($2,480)
Mortgage Payment
($14,028)
Total Cash Flow
($3,683)

Initial Investment

Purchase Price
$30,000
Purchase Costs
$3,138
Rehab Costs
$50,000
Rehab Contingency (15%)
$7,500
Construction Holding Costs
$7,625
Total Cash Needed
$98,263
Purchase Financing
($87,324)
Cash out of Pocket
$10,939

Cash-on-Cash Return

Year 1 Cash Flow / Cash out of Pocket

-33.67%


Annual Performance

Project Year123456
Gross Income 
Scheduled Gross Rents$13,500$18,450$18,911$19,384$19,869$5,091
Scheduled Other Income$0$0$0$0$0$0
Total Sch. Gross Income$13,500$18,450$18,911$19,384$19,869$5,091
Vacancy Loss($675)($923)($946)($969)($993)($255)
Effective Gross Income$12,825$17,527$17,966$18,415$18,875$4,837
Operating Expenses 
Property Taxes($1,197)($1,245)($1,295)($1,346)($1,400)($364)
Property Management($1,283)($1,753)($1,797)($1,841)($1,888)($484)
Utilities & Expenses$0$0$0$0$0$0
Total OpEx($2,480)($2,998)($3,091)($3,188)($3,288)($848)
Net Operating Income$10,346$14,530$14,874$15,227$15,587$3,989
Capital Expenditures 
Replacements $0$0$0$0$0$0
Net Income After Expenses$10,346$14,530$14,874$15,227$15,587$3,989
Financing 
Principal($1,191)($1,645)($1,712)($1,781)($1,854)($475)
Interest + Fees($12,837)($3,548)($3,481)($3,411)($3,339)($823)
Total Payment($14,028)($5,193)($5,193)($5,193)($5,193)($1,298)
Performance 
Cash Flow ($3,683)$9,337$9,682$10,034$10,395$2,691
Property Value $200,688$208,716$217,064$225,747$234,777$244,168
Cap Rate 5.16%6.96%6.85%6.75%6.64%1.63%
Gross Rent Multiplier (GRM) 14.8711.3111.4811.6511.8247.96
Operating Expense Ratio (OER) 19.33%17.10%17.21%17.31%17.42%17.53%
Outstanding Loans ($89,581)($87,942)($86,236)($84,460)($82,612)($82,139)
Equity $111,107$120,774$130,828$141,286$152,164$162,029
Rolling Income After Expenses $10,346$24,875$39,750$54,977$70,564$74,553
Rolling Loan Interest & Fees ($12,837)($16,385)($19,866)($23,277)($26,616)($27,439)
Acquisition & Disposition ($72,309)($72,309)($72,309)($72,309)($72,309)($72,309)
Profit From Sale
Includes sale profit and rolling income
$68,387$87,397$107,139$127,637$148,916$161,473

Comps

AddressDistBedsBathsSqftSold ($)$/sqftSale date
7505 South May Street0.057 miles32.02112$140,000$662019-03-12
7753 S May St0.29 miles32.01806$200,000$1112019-01-28
7817 South Aberdeen Street0.34 miles62.01956$305,000$1562019-07-08
Average:$215,000$111 

CMA Summary

By Average of Sales

Adjusted Comps

Avg of Adjusted Sales ARV
$215,000
Subject Sqft
1,808
Adjusted $/sqft
$119

Unadjusted Comps

Avg of Sales ARV
$215,000
Subject Sqft
1,808
Avg of Sales $/sqft
$119

By Average of $/Sqft

Adjusted Comps

Avg of Adjusted $/sqft
$111
Subject Sqft
1,808
Calculated Adj. ARV
$200,688

Unadjusted Comps

Avg of Unadjusted $/sqft
$111
Subject Sqft
1,808
Calculated ARV
$200,688

CMA Detail

BasicsSubjectComparable Comparable Comparable
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Address7528 S Aberdeen St, Chicago, IL 60620, USA7505 South May Street, Chicago, IL 60620, USA7753 S May St, Chicago, IL 60620, USA7817 South Aberdeen Street, Chicago, IL 60620, USA
Sold Date2010-11-082019-03-122019-01-282019-07-08
Sold $$140,000$200,000$305,000
Sqft1,8082,1121,8061,956
$/sqft$0$66$111$156
Features
Feature Values
UnitsUnitsAdjustmentUnitsAdjustmentUnitsAdjustment
Bedrooms
$05.003.00$03.00$06.00$0
Bathrooms
$02.002.00$02.00$02.00$0
Garage spaces
$00.000.00$00.00$00.00$0
Carport spaces
$00.000.00$00.00$00.00$0
Lot size sqft
$03,500.003,624.00$03,720.00$03,484.00$0
Basement sqft
$00.000.00$00.00$00.00$0
Has pool
$00.000.00$00.00$00.00$0
Has view
$00.000.00$00.00$00.00$0
Adjustment Subtotals$0$0$0
Adjusted $/sqft$119$66$111$156
Adjusted ARV $$215,000$140,000$200,000$305,000
Notes

Loans

NameAmount Financed ($)Rate (%)PointsFeesTermTotal of Payments
AQ/REhab.

An interest only purchase loan for the financing of purchase costs

$29,82413.00%4.00$9953 Months$3,157
Rehab only.

An interest only purchase loan for the financing of rehab costs

$57,50013.00%4.00$03 Months$4,169
Refinance.

An amortized refinance loan for the financing of purchase and rehab costs

$90,6384.00%2.00$995360 Months$28,771
Total Payments:$36,097

Property Photos

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