17202 Cottonwood Ct, Hazel Crest IL 60429

17202 Cottonwood Ct, Hazel Crest, IL 60429

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1971, Size: 1300 SF

Investment strategy: Rental Property

Purchase Price$ 174,900

Rent$ 2,505/mo

Monthly Cash Flow$ 890

Cash on Cash Return24.54 %

Financial Analysis

Cash on Cash Return	24.54 %
Internal Rate of Return (IRR)	24.05 %
Capitalization Rate	13.14 %
Gross Rent Multiplier (GRM)	5.82
Debt-coverage Ratio (DCR)	1.87
Operating Expense Ratio (OER)	21.16 %
After Repair Value	$ 174,900

Financial Breakdown

Purchase Price	$ 174,900
Purchase Costs	$ 8,548
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).	$ 183,448
Financing	$ 139,920
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 43,528
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.	$ 37,778
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	$ 2,505/mo
Gross Operating Income (GOI)	$ 29,158
Total Expenses	$ 6,169
Net Operating Income (NOI)	$ 22,989
Annual Debt Service	$ 12,309
Cash Flow Before Taxes (CFBT)	$ 10,681
Income Tax Liability	$ 1,691
Cash Flow After Taxes (CFAT)	$ 8,990

Purchase Price	$ 174,900
Address	17202 Cottonwood Ct , Hazel Crest, 60429, IL
MLS^® #	12253929
Listing Agent	Rochelle Millsapp
Year Built	1971
Type	Singlefamily
Size	1300 SF
Bedrooms	3
Bathrooms	1

Property History

Date	Price	Event
12/10/2024	174900	Listed
2/22/2001	82000	Sold
7/13/1989	35680	Sold
6/24/1985	44000	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	$ 4,669	16.01 %
Total Expenses	$ 6,169	21.16 %
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.	$ 22,989	78.84 %

Cash Flow (Year 1)

Net Operating Income	$ 22,989	78.84 %
Annual Debt Service	$ 12,309	42.21 %
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.	$ 10,681	36.63 %
Income Tax Liability	$ 1,691	5.80 %
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.	$ 8,990	30.83 %

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).	21.16 %
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.	63.37 %

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.	$ 223,789
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.	24.05 %
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	6.14
Annual Depreciation	$ 5,088

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.	24.54 %
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.	36.59 %
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.	13.14 %
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.	17.19 %
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.	5.82

Financing		% of ARV
Down Payment	$ 34,980	20.00 %
HomeStyle	$ 139,920	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.		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		1.87

HomeStyle Financing of: Purchase + Repairs ($ 174,900)
Type	Amortized
Loan Amount	$ 139,920
Down payment (20%)	$ 34,980
Amortization	30 years
Interest Rate	7.99 %
Monthly Payment	$ 1,025.71

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	6,169	6,292	6,418	6,547	6,678	6,811	6,947	7,086	7,228	7,373	7,520	7,670	7,824	7,980	8,140	8,303	8,469	8,638	8,811	8,987	9,167	9,350	9,537	9,728	9,922	10,121	10,323	10,530	10,740	10,955
Net Operating Income	0	22,989	23,449	23,918	24,396	24,884	25,382	25,890	26,407	26,936	27,474	28,024	28,584	29,156	29,739	30,334	30,940	31,559	32,190	32,834	33,491	34,161	34,844	35,541	36,252	36,977	37,716	38,471	39,240	40,025	40,825
Loan Payment	0	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308	12,308
Payment Interest Part	0	11,137	11,040	10,935	10,821	10,698	10,565	10,420	10,263	10,094	9,910	9,712	9,496	9,263	9,011	8,737	8,441	8,121	7,774	7,398	6,991	6,550	6,073	5,556	4,996	4,390	3,733	3,022	2,253	1,419	517
Payment Principal Part	0	1,171	1,268	1,373	1,487	1,610	1,744	1,889	2,045	2,215	2,398	2,597	2,812	3,045	3,298	3,571	3,867	4,188	4,535	4,911	5,318	5,759	6,236	6,753	7,313	7,919	8,575	9,286	10,056	10,889	11,792
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	-43,528	10,681	11,140	11,609	12,088	12,576	13,073	13,581	14,099	14,627	15,166	15,715	16,276	16,847	17,430	18,025	18,632	19,251	19,882	20,526	21,182	21,852	22,535	23,232	23,943	24,668	25,408	26,162	26,931	27,716	28,517
Depreciation	0	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088	5,088
Taxes	0	1,691	1,830	1,974	2,122	2,275	2,432	2,595	2,764	2,938	3,119	3,306	3,500	3,701	3,910	4,127	4,353	4,588	4,832	5,087	5,353	5,631	5,921	6,224	6,542	6,875	7,224	7,590	7,975	8,379	8,805
Cash Flow After Taxes	-43,528	8,990	9,310	9,636	9,966	10,301	10,641	10,986	11,335	11,689	12,047	12,409	12,776	13,146	13,520	13,898	14,279	14,663	15,050	15,439	15,829	16,222	16,615	17,008	17,401	17,793	18,184	18,572	18,957	19,337	19,712

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 (13.14%) & NOI	$ 310,695
Appreciation (3.00%)	$ 424,528
Gross Rent Multiplier	$ 310,683

Sale Proceeds

Projected Selling Price	$ 310,695
Costs of Sale (3.50%)	$ 10,874
Net Sale Proceeds Before Tax	$ 299,821

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	$ 299,821
Investor Cash Outlay	$ 43,528
Net Assets	$ 256,293
Average Yield
Annual Net Assets	$ 8,543
Average Cash Flow (After Taxes)	$ 13,533
Average Annual Gain (After Taxes)	$ 22,076
Average Annual Yield (After Taxes)	12.62 %

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: 17202 Cottonwood Ct, Hazel Crest RENTAL

Property Report :

17202 Cottonwood Ct, Hazel Crest, IL 60429

Executive Summary