220 Mill Stream Dr, Bolingbrook IL 60440

220 Mill Stream Dr, Bolingbrook, IL 60440

Singlefamily: 5 bedrooms , 2 bathrooms

Year built: 1977, Size: 1800 SF

Investment strategy: Rental Property

Purchase Price$ 275,000

Rent$ 3,300/mo

Monthly Cash Flow$ 787

Cash on Cash Return13.39 %

Financial Analysis

Cash on Cash Return	13.39 %
Internal Rate of Return (IRR)	17.01 %
Capitalization Rate	7.66 %
Gross Rent Multiplier (GRM)	10.08
Debt-coverage Ratio (DCR)	1.45
Operating Expense Ratio (OER)	20.45 %
After Repair Value	$ 399,000
Profit/Equity From Rehab	$ 88,450

Financial Breakdown

Purchase Price	$ 275,000
Purchase Costs	$ 10,550
Repair/Construction Costs	$ 25,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 310,550
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	$ 3,300/mo
Gross Operating Income (GOI)	$ 38,412
Total Expenses	$ 7,854
Net Operating Income (NOI)	$ 30,558
Annual Debt Service	$ 21,112
Cash Flow Before Taxes (CFBT)	$ 9,446
Income Tax Liability	$ 864
Cash Flow After Taxes (CFAT)	$ 8,582

Check out this 5 bedroom home in the heart of Bolingbrook. This home has two stories and offers plenty of natural light. Updated half bath on first floor. Perfectly located in the heart of Bolingbrook. Do not miss out!

Purchase Price	$ 275,000
Address	220 Mill Stream Dr , Bolingbrook, 60440, IL
MLS^® #	12217123
Listing Agent	Michael Scanlon
Year Built	1977
Type	Singlefamily
Size	1800 SF
Bedrooms	5
Bathrooms	2

Property History

Date	Price	Event
11/25/2024	275000	Listed
11/23/2024		Listing removed
11/22/2024	2480	Price Changed for rent
11/21/2024		Listing removed
11/10/2024	2480	Price Changed for rent
11/9/2024	2505	Price Changed for rent
11/7/2024	2505	Price Changed for rent
11/5/2024	2550	Listed for rent
11/4/2024		Listing removed
11/1/2024	2550	Price Changed for rent
10/30/2024	2550	Price Changed for rent
10/26/2024	2590	Price Changed for rent
10/23/2024	2590	Price Changed for rent
10/9/2024	2630	Listed for rent
10/7/2024	2630	Listed for rent
10/6/2024		Listing removed
10/5/2024	2630	Listed for rent
10/4/2024		Listing removed
10/3/2024		Listing removed
9/24/2024	2630	Price Changed for rent
9/16/2024		Listing removed
9/8/2024	2710	Listed for rent
8/27/2024	2710	Price Changed for rent
8/14/2024	2745	Listed for rent
9/3/2015	4466598	Sold
7/28/2013	94900	Sold
6/17/2013	94900	Listed
9/11/2006	210000	Sold
8/28/2006	214900	Listing removed
6/26/2006	214900	Listed
4/13/2004	166000	Sold
12/26/1996	113000	Sold
11/30/1987	71000	Sold
8/31/1986	62500	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.	$ 39,600
Total Gross Income	$ 39,600
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.	$ 1,188
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.	$ 38,412	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	3.91 %
Property tax	$ 6,354	16.54 %
Total Expenses	$ 7,854	20.45 %
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.	$ 30,558	79.55 %

Cash Flow (Year 1)

Net Operating Income	$ 30,558	79.55 %
Annual Debt Service	$ 21,112	54.96 %
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.	$ 9,446	24.59 %
Income Tax Liability	$ 864	2.25 %
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.	$ 8,582	22.34 %

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).	20.45 %
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.	75.41 %

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.	$ 295,484
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.	17.01 %
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	5.19
Annual Depreciation	$ 8,000

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.	13.39 %
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.	25.08 %
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.	7.66 %
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.	14.40 %
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.	10.08

Financing		% of ARV
Down Payment	$ 60,000	15.04 %
HomeStyle	$ 240,000	60.15 %
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.		87.27 %
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		1.45

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	39,600	40,392	41,200	42,024	42,864	43,722	44,596	45,488	46,398	47,326	48,272	49,238	50,222	51,227	52,251	53,296	54,362	55,450	56,559	57,690	58,844	60,020	61,221	62,445	63,694	64,968	66,267	67,593	68,945	70,323
Vacancy Loss	0	1,188	1,212	1,236	1,261	1,286	1,312	1,338	1,365	1,392	1,420	1,448	1,477	1,507	1,537	1,568	1,599	1,631	1,663	1,697	1,731	1,765	1,801	1,837	1,873	1,911	1,949	1,988	2,028	2,068	2,110
Gross Operating Income	0	38,412	39,180	39,964	40,763	41,578	42,410	43,258	44,123	45,006	45,906	46,824	47,760	48,716	49,690	50,684	51,698	52,731	53,786	54,862	55,959	57,078	58,220	59,384	60,572	61,783	63,019	64,279	65,565	66,876	68,214
Expenses	0	7,854	8,011	8,171	8,335	8,501	8,671	8,845	9,022	9,202	9,386	9,574	9,765	9,961	10,160	10,363	10,570	10,782	10,998	11,217	11,442	11,671	11,904	12,142	12,385	12,633	12,885	13,143	13,406	13,674	13,948
Net Operating Income	0	30,558	31,169	31,793	32,428	33,077	33,739	34,413	35,102	35,804	36,520	37,250	37,995	38,755	39,530	40,321	41,127	41,950	42,789	43,644	44,517	45,408	46,316	47,242	48,187	49,151	50,134	51,136	52,159	53,202	54,266
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	25,000	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	-70,550	9,446	10,057	10,680	11,316	11,965	12,626	13,301	13,989	14,691	15,407	16,138	16,883	17,643	18,418	19,208	20,015	20,837	21,676	22,532	23,405	24,295	25,203	26,130	27,075	28,038	29,021	30,024	31,047	32,090	33,154
Depreciation	0	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000	8,000
Taxes	0	864	1,058	1,259	1,467	1,682	1,904	2,135	2,374	2,622	2,880	3,148	3,427	3,717	4,019	4,333	4,662	5,005	5,364	5,739	6,132	6,543	6,975	7,428	7,904	8,405	8,933	9,488	10,074	10,692	11,345
Cash Flow After Taxes	-70,550	8,582	8,999	9,421	9,849	10,283	10,722	11,166	11,615	12,069	12,527	12,990	13,456	13,926	14,399	14,875	15,353	15,832	16,313	16,793	17,273	17,752	18,228	18,702	19,170	19,633	20,089	20,536	20,973	21,398	21,809

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 (7.66%) & NOI	$ 708,436
Appreciation (3.00%)	$ 968,478
Gross Rent Multiplier	$ 708,860

Sale Proceeds

Projected Selling Price	$ 708,436
Costs of Sale (3.50%)	$ 24,795
Net Sale Proceeds Before Tax	$ 683,641

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	$ 683,641
Investor Cash Outlay	$ 70,550
Net Assets	$ 613,091
Average Yield
Annual Net Assets	$ 20,436
Average Cash Flow (After Taxes)	$ 14,431
Average Annual Gain (After Taxes)	$ 34,867
Average Annual Yield (After Taxes)	12.68 %

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: 220 Mill Stream Dr, Bolingbrook RENTAL

Property Report :

220 Mill Stream Dr, Bolingbrook, IL 60440

Executive Summary