137 N Highview Ave, Addison IL 60101

137 N Highview Ave, Addison, IL 60101

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1957, Size: 1200 SF

Investment strategy: Rental Property

Purchase Price$ 300,000

Rent$ 2,600/mo

Monthly Cash Flow$ 212

Cash on Cash Return3.60 %

Financial Analysis

Cash on Cash Return	3.60 %
Internal Rate of Return (IRR)	11.88 %
Capitalization Rate	6.39 %
Gross Rent Multiplier (GRM)	11.86
Debt-coverage Ratio (DCR)	1.12
Operating Expense Ratio (OER)	21.84 %
After Repair Value	$ 370,000
Profit/Equity From Rehab	$ 59,450

Financial Breakdown

Purchase Price	$ 300,000
Purchase Costs	$ 10,550
Repair/Construction Costs	$ 0
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 310,550
Financing	$ 240,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 70,550
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.	$ 64,800
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	$ 2,600/mo
Gross Operating Income (GOI)	$ 30,264
Total Expenses	$ 6,610
Net Operating Income (NOI)	$ 23,654
Annual Debt Service	$ 21,112
Cash Flow Before Taxes (CFBT)	$ 2,542
Income Tax Liability	$ -1,044
Cash Flow After Taxes (CFAT)	$ 3,586

Well maintained 3 bed 1 bath Ranch style home offers a spacious interior filled with natural light. The rooms are bright and well-sized, making the home feel open and inviting. This home also includes a large fully fenced yard, perfect for entertaining guests, family gatherings, or outdoor activities. Additionally, the house includes a detached 2-car garage adding extra storage and parking convenience. Home is within walking distance of key local amenities like the Village Hall and Addison Public Library. The area also features nearby parks, providing convenient recreational options. With it's prime location near community resources, this property combines the benefits of suburban living with easy access to everyday conveniences like shopping and dining. Local schools include Army Trail Elementary, Indian Trail Junior High, and Addison Trail High School. Home is currently leased until March 2025

Purchase Price	$ 300,000
Address	137 N Highview Ave , Addison, 60101, IL
MLS^® #	12145482
Listing Agent	Maria Bello
Year Built	1957
Type	Singlefamily
Size	1200 SF
Bedrooms	3
Bathrooms	1

Property History

Date	Price	Event
9/26/2024	300000	Listed
3/10/2020	215000	Listing removed
12/22/2019	205000	Sold
10/4/1994	109000	Sold
9/30/1989	90000	Sold

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.	$ 31,200
Total Gross Income	$ 31,200
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.	$ 936
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.	$ 30,264	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	4.96 %
Property tax	$ 5,110	16.88 %
Total Expenses	$ 6,610	21.84 %
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.	$ 23,654	78.16 %

Cash Flow (Year 1)

Net Operating Income	$ 23,654	78.16 %
Annual Debt Service	$ 21,112	69.76 %
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.	$ 2,542	8.40 %
Income Tax Liability	$ -1,044	-3.45 %
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.	$ 3,586	11.85 %

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).	21.84 %
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.	91.60 %

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.	$ 186,615
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.	11.88 %
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	3.65
Annual Depreciation	$ 8,727

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.	3.60 %
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.	16.36 %
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.	6.39 %
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.	10.40 %
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.	11.86

Financing		% of ARV
Down Payment	$ 60,000	16.22 %
HomeStyle	$ 240,000	64.86 %
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.		80.00 %
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		1.12

HomeStyle Financing of: Purchase + Repairs ($ 300,000)
Type	Amortized
Loan Amount	$ 240,000
Down payment (20%)	$ 60,000
Amortization	30 years
Interest Rate	7.99 %
Monthly Payment	$ 1,759.36

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	31,200	31,824	32,460	33,110	33,772	34,447	35,136	35,839	36,556	37,287	38,033	38,793	39,569	40,361	41,168	41,991	42,831	43,688	44,561	45,453	46,362	47,289	48,235	49,199	50,183	51,187	52,211	53,255	54,320	55,406
Vacancy Loss	0	936	955	974	993	1,013	1,033	1,054	1,075	1,097	1,119	1,141	1,164	1,187	1,211	1,235	1,260	1,285	1,311	1,337	1,364	1,391	1,419	1,447	1,476	1,505	1,536	1,566	1,598	1,630	1,662
Gross Operating Income	0	30,264	30,869	31,487	32,116	32,759	33,414	34,082	34,764	35,459	36,168	36,892	37,630	38,382	39,150	39,933	40,731	41,546	42,377	43,224	44,089	44,971	45,870	46,788	47,723	48,678	49,651	50,644	51,657	52,690	53,744
Expenses	0	6,610	6,742	6,877	7,015	7,155	7,298	7,444	7,593	7,745	7,900	8,058	8,219	8,383	8,551	8,722	8,896	9,074	9,256	9,441	9,629	9,822	10,019	10,219	10,423	10,632	10,844	11,061	11,282	11,508	11,738
Net Operating Income	0	23,654	24,127	24,610	25,102	25,604	26,116	26,638	27,171	27,714	28,269	28,834	29,411	29,999	30,599	31,211	31,835	32,472	33,121	33,784	34,459	35,149	35,852	36,569	37,300	38,046	38,807	39,583	40,375	41,182	42,006
Loan Payment	0	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112	21,112
Payment Interest Part	0	19,103	18,937	18,757	18,561	18,350	18,121	17,873	17,604	17,314	16,999	16,658	16,289	15,889	15,456	14,987	14,479	13,929	13,334	12,689	11,991	11,235	10,416	9,529	8,569	7,529	6,404	5,184	3,864	2,434	886
Payment Principal Part	0	2,009	2,175	2,356	2,551	2,762	2,991	3,239	3,508	3,799	4,114	4,455	4,824	5,224	5,657	6,125	6,633	7,183	7,778	8,423	9,121	9,878	10,696	11,583	12,543	13,583	14,709	15,928	17,248	18,678	20,226
Cash Flow
Repairs/Construction	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	0
Cash Flow Before Taxes	-70,550	2,542	3,015	3,497	3,989	4,492	5,004	5,526	6,059	6,602	7,156	7,722	8,298	8,887	9,487	10,099	10,723	11,360	12,009	12,671	13,347	14,036	14,739	15,456	16,188	16,934	17,695	18,471	19,262	20,070	20,894
Depreciation	0	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727	8,727
Taxes	0	-1,044	-884	-719	-547	-368	-183	10	210	418	636	862	1,099	1,346	1,604	1,874	2,157	2,454	2,765	3,092	3,435	3,797	4,177	4,578	5,001	5,447	5,919	6,418	6,946	7,505	8,098
Cash Flow After Taxes	-70,550	3,586	3,899	4,216	4,536	4,860	5,187	5,516	5,849	6,184	6,521	6,859	7,200	7,541	7,883	8,224	8,566	8,906	9,244	9,580	9,912	10,240	10,562	10,878	11,187	11,486	11,776	12,053	12,316	12,565	12,795

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 (6.39%) & NOI	$ 657,369
Appreciation (3.00%)	$ 898,087
Gross Rent Multiplier	$ 657,120

Sale Proceeds

Projected Selling Price	$ 657,369
Costs of Sale (3.50%)	$ 23,008
Net Sale Proceeds Before Tax	$ 634,361

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	$ 634,361
Investor Cash Outlay	$ 70,550
Net Assets	$ 563,811
Average Yield
Annual Net Assets	$ 18,794
Average Cash Flow (After Taxes)	$ 7,911
Average Annual Gain (After Taxes)	$ 26,705
Average Annual Yield (After Taxes)	8.90 %

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: 137 N Highview Ave, Addison RENTAL

Property Report :

137 N Highview Ave, Addison, IL 60101

Executive Summary