15624 Lawndale Ave, Markham IL 60428

15624 Lawndale Ave, Markham, IL 60428

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1955,

Investment strategy: Rental Property

Purchase Price$ 139,900

Rent$ 2,505/mo

Monthly Cash Flow$ 892

Cash on Cash Return25.21 %

Financial Analysis

Cash on Cash Return	25.21 %
Internal Rate of Return (IRR)	24.11 %
Capitalization Rate	11.39 %
Gross Rent Multiplier (GRM)	6.62
Debt-coverage Ratio (DCR)	1.90
Operating Expense Ratio (OER)	22.29 %
After Repair Value	$ 199,000
Profit/Equity From Rehab	$ 20,632

Financial Breakdown

Purchase Price	$ 139,900
Purchase Costs	$ 8,468
Repair/Construction Costs	$ 30,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 178,368
Financing	$ 135,920
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 42,448
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.	$ 36,698
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	$ 2,505/mo
Gross Operating Income (GOI)	$ 29,158
Total Expenses	$ 6,500
Net Operating Income (NOI)	$ 22,658
Annual Debt Service	$ 11,957
Cash Flow Before Taxes (CFBT)	$ 10,702
Income Tax Liability	$ 1,942
Cash Flow After Taxes (CFAT)	$ 8,759

Nice solid and move in ready ranch for a great price in West Markham. The roof was just replaced this year, and all new carpeting was installed. Most rooms are freshly painted as well. The home features a comfortable Living Room, eat in Kitchen and three bedrooms. The attached one-car garage also serves as the Laundry and Utility Room. With the attached garage, your back yard space is even nicer with mature maple trees. Ideally located for those in need of commuting to work with I-57, I-80, and I-294 within 1.5 miles, along with the Metra line in nearby Midlothian or Oak Forest.

Purchase Price	$ 139,900
Address	15624 Lawndale Ave , Markham, 60428, IL
MLS^® #	12220451
Listing Agent	Lenny Feil
Year Built	1955
Type	Singlefamily
Bedrooms	3
Bathrooms	1

Property History

Date	Price	Change	Event
12/2/2024	139900		Listed
3/22/1983	42000		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.	$ 30,060
Total Gross Income	$ 30,060
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.	$ 902
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.	$ 29,158	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	5.14 %
Property tax	$ 5,000	17.15 %
Total Expenses	$ 6,500	22.29 %
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.	$ 22,658	77.71 %

Cash Flow (Year 1)

Net Operating Income	$ 22,658	77.71 %
Annual Debt Service	$ 11,957	41.01 %
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.	$ 10,702	36.70 %
Income Tax Liability	$ 1,942	6.66 %
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.	$ 8,759	30.04 %

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).	22.29 %
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.	63.30 %

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.	$ 230,101
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.	24.11 %
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	6.42
Annual Depreciation	$ 4,070

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.	25.21 %
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.	35.10 %
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.	11.39 %
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.	21.49 %
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.	6.62

Financing		% of ARV
Down Payment	$ 33,980	17.08 %
HomeStyle	$ 135,920	68.30 %
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.		97.16 %
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		1.90

HomeStyle Financing of: Purchase + Repairs ($ 169,900)
Type	Amortized
Loan Amount	$ 135,920
Down payment (20%)	$ 33,980
Amortization	30 years
Interest Rate	7.99 %
Monthly Payment	$ 996.39

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	30,060	30,661	31,274	31,900	32,538	33,189	33,852	34,529	35,220	35,924	36,643	37,376	38,123	38,886	39,664	40,457	41,266	42,091	42,933	43,792	44,668	45,561	46,472	47,402	48,350	49,317	50,303	51,309	52,335	53,382
Vacancy Loss	0	902	920	938	957	976	996	1,016	1,036	1,057	1,078	1,099	1,121	1,144	1,167	1,190	1,214	1,238	1,263	1,288	1,314	1,340	1,367	1,394	1,422	1,450	1,479	1,509	1,539	1,570	1,601
Gross Operating Income	0	29,158	29,741	30,336	30,943	31,562	32,193	32,837	33,494	34,163	34,847	35,544	36,255	36,980	37,719	38,474	39,243	40,028	40,829	41,645	42,478	43,328	44,194	45,078	45,980	46,899	47,837	48,794	49,770	50,765	51,780
Expenses	0	6,500	6,630	6,763	6,898	7,036	7,177	7,320	7,466	7,616	7,768	7,923	8,082	8,244	8,408	8,577	8,748	8,923	9,102	9,284	9,469	9,659	9,852	10,049	10,250	10,455	10,664	10,877	11,095	11,317	11,543
Net Operating Income	0	22,658	23,111	23,574	24,045	24,526	25,016	25,517	26,027	26,548	27,079	27,620	28,173	28,736	29,311	29,897	30,495	31,105	31,727	32,362	33,009	33,669	34,342	35,029	35,730	36,444	37,173	37,917	38,675	39,448	40,237
Loan Payment	0	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957	11,957
Payment Interest Part	0	10,819	10,725	10,623	10,512	10,392	10,262	10,122	9,970	9,805	9,627	9,434	9,225	8,998	8,753	8,488	8,200	7,889	7,551	7,186	6,791	6,363	5,899	5,397	4,853	4,264	3,627	2,936	2,188	1,379	502
Payment Principal Part	0	1,138	1,232	1,334	1,445	1,564	1,694	1,835	1,987	2,151	2,330	2,523	2,732	2,958	3,204	3,469	3,757	4,068	4,405	4,770	5,166	5,594	6,058	6,560	7,104	7,692	8,330	9,021	9,768	10,578	11,455
Cash Flow
Repairs/Construction	30,000	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	-42,448	10,702	11,155	11,617	12,088	12,569	13,060	13,560	14,071	14,591	15,122	15,664	16,216	16,779	17,354	17,940	18,538	19,148	19,770	20,405	21,052	21,712	22,386	23,073	23,773	24,488	25,217	25,960	26,718	27,492	28,281
Depreciation	0	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070	4,070
Taxes	0	1,942	2,079	2,220	2,366	2,516	2,671	2,831	2,997	3,168	3,345	3,529	3,719	3,917	4,122	4,335	4,556	4,787	5,026	5,276	5,537	5,809	6,093	6,391	6,702	7,028	7,369	7,728	8,104	8,500	8,916
Cash Flow After Taxes	-42,448	8,759	9,076	9,397	9,723	10,053	10,389	10,729	11,074	11,423	11,777	12,135	12,497	12,863	13,232	13,606	13,982	14,362	14,744	15,129	15,515	15,903	16,292	16,682	17,071	17,460	17,847	18,232	18,614	18,992	19,364

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 (11.39%) & NOI	$ 353,270
Appreciation (3.00%)	$ 483,025
Gross Rent Multiplier	$ 353,388

Sale Proceeds

Projected Selling Price	$ 353,270
Costs of Sale (3.50%)	$ 12,364
Net Sale Proceeds Before Tax	$ 340,906

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	$ 340,906
Investor Cash Outlay	$ 42,448
Net Assets	$ 298,458
Average Yield
Annual Net Assets	$ 9,949
Average Cash Flow (After Taxes)	$ 13,252
Average Annual Gain (After Taxes)	$ 23,200
Average Annual Yield (After Taxes)	16.58 %

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: 15624 Lawndale Ave, Markham RENTAL

Property Report :

15624 Lawndale Ave, Markham, IL 60428

Executive Summary