12943 W Playfield Dr, Crestwood IL 60418

12943 W Playfield Dr, Crestwood, IL 60418

Singlefamily: 4 bedrooms , 2 bathrooms

Year built: 1960, Size: 2100 SF

Investment strategy: Rental Property

Purchase Price$ 279,900

Rent$ 3,000/mo

Monthly Cash Flow$ 428

Cash on Cash Return7.27 %

Financial Analysis

Cash on Cash Return	7.27 %
Internal Rate of Return (IRR)	13.24 %
Capitalization Rate	8.75 %
Gross Rent Multiplier (GRM)	8.33
Debt-coverage Ratio (DCR)	1.24
Operating Expense Ratio (OER)	24.87 %
After Repair Value	$ 299,900

Financial Breakdown

Purchase Price	$ 279,900
Purchase Costs	$ 10,548
Repair/Construction Costs	$ 20,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 310,448
Financing	$ 239,920
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 70,528
Cash at Closing Cash at Closing This number includes down payment and loan points. Cash at Closing This number includes down payment and loan points.	$ 64,778
Cash During Rehab Cash During Rehab Shows the cash amount remaining to fund the purchase and rehab/construction. Cash During Rehab Shows the cash amount remaining to fund the purchase and rehab/construction.	$ 5,750

Operating Analysis

Rent	$ 3,000/mo
Gross Operating Income (GOI)	$ 34,920
Total Expenses	$ 8,684
Net Operating Income (NOI)	$ 26,236
Annual Debt Service	$ 21,105
Cash Flow Before Taxes (CFBT)	$ 5,131
Income Tax Liability	$ -251
Cash Flow After Taxes (CFAT)	$ 5,382

Purchase Price	$ 279,900
Address	12943 W Playfield Dr , Crestwood, 60418, IL
MLS^® #	12212580
Listing Agent	Lucie Fluksova
Year Built	1960
Type	Singlefamily
Size	2100 SF
Bedrooms	4
Bathrooms	2

Property History

Date	Price	Change	Event
11/17/2024	279900		Listed

Annual Property Operating Data

Incomes		% of GOI
Gross Scheduled Income Gross Scheduled Income (GSI) Represents the total of monthly rents for the particular property, including the potential rents from vacant units and uncollectable rents. Gross Scheduled Income (GSI) Represents the total of monthly rents for the particular property, including the potential rents from vacant units and uncollectable rents.	$ 36,000
Total Gross Income	$ 36,000
Vacancy loss Vacancy and Credit Loss Part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants. Vacancy and Credit Loss Part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants.	$ 1,080
Gross Operating Income Gross Operating Income (GOI) An actual income which is expected to be collected in the property. Gross Operating Income (GOI) An actual income which is expected to be collected in the property.	$ 34,920	100.00 %
Expenses Operating Expenses Expenses necessary for maintaining the property and ensuring its continued ability to produce income (doesn't include mortgage payments or depreciation). Operating Expenses Expenses necessary for maintaining the property and ensuring its continued ability to produce income (doesn't include mortgage payments or depreciation).
Insurance	$ 1,500	4.30 %
Property tax	$ 7,184	20.57 %
Total Expenses	$ 8,684	24.87 %
Net Operating Income Net Operating Income (NOI) Important measurement calculated as gross operating income minus operating expenses. Net Operating Income (NOI) Important measurement calculated as gross operating income minus operating expenses.	$ 26,236	75.13 %

Cash Flow (Year 1)

Net Operating Income	$ 26,236	75.13 %
Annual Debt Service	$ 21,105	60.44 %
Cash Flow Before Taxes (CFBT) Cash Flow All the inflows and outflows of cash for a certain property (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property. Cash Flow All the inflows and outflows of cash for a certain property (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.	$ 5,131	14.69 %
Income Tax Liability	$ -251	-0.72 %
Cash Flow After Taxes (CFAT) Cash Flow All the inflows and outflows of cash (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property. Cash Flow All the inflows and outflows of cash (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.	$ 5,382	15.41 %

Operating Ratios

Operating Expense Ratio Operating Expense Ratio Ratio of the operating expenses to the gross operating income (GOI). Operating Expense Ratio Ratio of the operating expenses to the gross operating income (GOI).	24.87 %
Break-Even Ratio Break-Even Ratio (BER) Another benchmark used by mortgage lenders, estimating how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less. Break-Even Ratio (BER) Another benchmark used by mortgage lenders, estimating how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less.	85.31 %

Financial Measures

Net Present Value Net Present Value (NPV) Probably the best measure of any investment thanks to its complexity; taking into account all future cash flows including the selling price, and it converts all these amounts to their present values using discount rate required by the investor. More information and an example on the blog. Net Present Value (NPV) Probably the best measure of any investment thanks to its complexity; taking into account all future cash flows including the selling price, and it converts all these amounts to their present values using discount rate required by the investor. More information and an example on the blog.	$ 194,090
Internal Rate of Return Internal Rate of Return (IRR) Rate which an investment will return over the estimated period of ownership. It is in fact the discount rate that produces NPV of zero. Internal Rate of Return (IRR) Rate which an investment will return over the estimated period of ownership. It is in fact the discount rate that produces NPV of zero.	13.24 %
Profitability Index Profitability Index Similar to NPV, also calculates with the present values of future cash flows and discount rate. It shows whether the present value of the cash flows is worth the initial investment. Good investment should be above 1.0 Profitability Index Similar to NPV, also calculates with the present values of future cash flows and discount rate. It shows whether the present value of the cash flows is worth the initial investment. Good investment should be above 1.0	3.75
Annual Depreciation	$ 8,143

Holding period of 30 years and discount rate of 5.00% were used for calculation of NPV and IRR. The rest of the financial measures are for the 1st year only and therefore don't provide such an exact information.

Investment Return Ratios

Cash on Cash Return Cash on Cash Return Ratio between annual cash flow before taxes and the total initial investment, expressed as a percentage. It does not take in account the future value of money. Cash on Cash Return Ratio between annual cash flow before taxes and the total initial investment, expressed as a percentage. It does not take in account the future value of money.	7.27 %
Return on Investment Return on Investment Very similar to Cash on Cash Return, but also takes in account appreciation of the property in the first year. Return on Investment Very similar to Cash on Cash Return, but also takes in account appreciation of the property in the first year.	19.18 %
Capitalization Rate Capitalization Rate Calculated as ratio of the net operating income and the value of the property. Capitalization Rate Calculated as ratio of the net operating income and the value of the property.	8.75 %
Gross Rental Yield Gross Rental Yield Used for a particular property or also as a market indicator when using median values of rent and house prices - counted from gross scheduled rent and initial investment. Gross Rental Yield Used for a particular property or also as a market indicator when using median values of rent and house prices - counted from gross scheduled rent and initial investment.	12.86 %
Gross Rent Multiplier Gross Rent Multiplier (GRM) Counted as a ratio of market value of the property and gross scheduled income. Gross Rent Multiplier (GRM) Counted as a ratio of market value of the property and gross scheduled income.	8.33

Financing		% of ARV
Down Payment	$ 59,980	20.00 %
HomeStyle	$ 239,920	80.00 %
Loan to Value Ratio Loan to Value Ratio Shows sum of all purchase and rehab loans divided by purchase price. Loan to Value Ratio Shows sum of all purchase and rehab loans divided by purchase price.		85.72 %
Loan to Cost Ratio Loan to Cost Ratio Shows sum of all purchase and rehab loans to construction cost (purchase price + repairs). Loan to Cost Ratio Shows sum of all purchase and rehab loans to construction cost (purchase price + repairs).		80.00 %
Debt Coverage Ratio		1.24

HomeStyle Financing of: Purchase + Repairs ($ 299,900)
Type	Amortized
Loan Amount	$ 239,920
Down payment (20%)	$ 59,980
Amortization	30 years
Interest Rate	7.99 %
Monthly Payment	$ 1,758.78

This chart shows the process of accumulation of investor's equity. There is some equity created right at the beginning with the rehab/construction and later investor's equity is rising by paying off the principal of the loan and also by appreciation over the years. All the green parts is the cummulative equity belonging to the investor and the red part belongs to the lender.

Year	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25	26	27	28	29	30
Operational Analysis
Gross Scheduled Income	0	36,000	36,720	37,454	38,203	38,968	39,747	40,542	41,353	42,180	43,023	43,884	44,761	45,657	46,570	47,501	48,451	49,420	50,409	51,417	52,445	53,494	54,564	55,655	56,768	57,904	59,062	60,243	61,448	62,677	63,930
Vacancy Loss	0	1,080	1,102	1,124	1,146	1,169	1,192	1,216	1,241	1,265	1,291	1,317	1,343	1,370	1,397	1,425	1,454	1,483	1,512	1,543	1,573	1,605	1,637	1,670	1,703	1,737	1,772	1,807	1,843	1,880	1,918
Gross Operating Income	0	34,920	35,618	36,331	37,057	37,799	38,555	39,326	40,112	40,914	41,733	42,567	43,419	44,287	45,173	46,076	46,998	47,938	48,896	49,874	50,872	51,889	52,927	53,986	55,065	56,167	57,290	58,436	59,604	60,797	62,013
Expenses	0	8,684	8,858	9,035	9,216	9,400	9,588	9,780	9,975	10,175	10,378	10,586	10,797	11,013	11,234	11,458	11,688	11,921	12,160	12,403	12,651	12,904	13,162	13,425	13,694	13,968	14,247	14,532	14,823	15,119	15,421
Net Operating Income	0	26,236	26,761	27,296	27,842	28,399	28,967	29,546	30,137	30,740	31,354	31,982	32,621	33,274	33,939	34,618	35,310	36,016	36,737	37,471	38,221	38,985	39,765	40,560	41,372	42,199	43,043	43,904	44,782	45,678	46,591
Loan Payment	0	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105	21,105
Payment Interest Part	0	19,097	18,931	18,750	18,555	18,344	18,115	17,867	17,599	17,308	16,993	16,652	16,283	15,883	15,451	14,982	14,474	13,925	13,329	12,685	11,987	11,231	10,413	9,526	8,566	7,527	6,401	5,183	3,863	2,433	886
Payment Principal Part	0	2,008	2,175	2,355	2,550	2,761	2,990	3,238	3,507	3,797	4,112	4,453	4,822	5,222	5,655	6,123	6,631	7,181	7,776	8,420	9,118	9,874	10,693	11,579	12,539	13,578	14,704	15,923	17,243	18,672	20,220
Cash Flow
Repairs/Construction	20,000	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-70,528	5,131	5,655	6,191	6,737	7,293	7,861	8,441	9,032	9,634	10,249	10,876	11,516	12,168	12,834	13,513	14,205	14,911	15,631	16,366	17,116	17,880	18,660	19,455	20,266	21,094	21,938	22,799	23,677	24,572	25,486
Depreciation	0	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143	8,143
Taxes	0	-251	-78	101	286	478	677	884	1,099	1,322	1,555	1,797	2,049	2,312	2,586	2,873	3,173	3,487	3,816	4,161	4,523	4,903	5,302	5,723	6,166	6,632	7,125	7,645	8,194	8,775	9,391
Cash Flow After Taxes	-70,528	5,382	5,734	6,090	6,451	6,815	7,184	7,557	7,933	8,312	8,695	9,080	9,467	9,857	10,247	10,639	11,032	11,424	11,815	12,205	12,593	12,977	13,357	13,732	14,101	14,461	14,813	15,154	15,483	15,797	16,095

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 30 years. Below is the resale price calculated using different methods.

Capitalization (8.75%) & NOI	$ 532,469
Appreciation (3.00%)	$ 727,936
Gross Rent Multiplier	$ 532,540

Sale Proceeds

Projected Selling Price	$ 532,469
Costs of Sale (3.50%)	$ 18,636
Net Sale Proceeds Before Tax	$ 513,833

In the resale analysis we do not include any calculation for taxes that might be owed on sale of the property. The tax laws for the resale are rather complex and subjected to frequent changes.

Net Assets and Yield

Net Assets
Sale Proceeds Before Tax	$ 513,833
Investor Cash Outlay	$ 70,528
Net Assets	$ 443,305
Average Yield
Annual Net Assets	$ 14,777
Average Cash Flow (After Taxes)	$ 10,280
Average Annual Gain (After Taxes)	$ 25,056
Average Annual Yield (After Taxes)	8.95 %

This charts shows Net Present Value (NPV) when property is sold in various years, i.e. when sold in 5th year, the NPV is calculated from 5 years of Cash Flow (including the selling price) and this NPV is displayed in year 5. Optimal holding period can be estimated, using this method - when NPV is the highest. Please note that appreciation growth can change these numbers greatly. It sometimes makes sense to sell the property even before the end of the mortgage term.

Property Report: 12943 W Playfield Dr, Crestwood RENTAL

Property Report :

12943 W Playfield Dr, Crestwood, IL 60418

Executive Summary