2211 Webster Ave, Joliet IL 60436

2211 Webster Ave, Joliet, IL 60436

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 1952, Size: 884 SF

Investment strategy: Rental Property

Purchase Price$ 187,000

Rent$ 2,495/mo

Monthly Cash Flow$ 563

Cash on Cash Return12.33 %

Financial Analysis

Cash on Cash Return	12.33 %
Internal Rate of Return (IRR)	16.07 %
Capitalization Rate	7.70 %
Gross Rent Multiplier (GRM)	9.85
Debt-coverage Ratio (DCR)	1.42
Operating Expense Ratio (OER)	21.74 %
After Repair Value	$ 295,000
Profit/Equity From Rehab	$ 58,618

Financial Breakdown

Purchase Price	$ 187,000
Purchase Costs	$ 9,382
Repair/Construction Costs	$ 40,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 236,382
Financing	$ 181,600
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 54,782
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.	$ 49,032
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	$ 2,495/mo
Gross Operating Income (GOI)	$ 29,042
Total Expenses	$ 6,315
Net Operating Income (NOI)	$ 22,727
Annual Debt Service	$ 15,975
Cash Flow Before Taxes (CFBT)	$ 6,752
Income Tax Liability	$ 708
Cash Flow After Taxes (CFAT)	$ 6,044

Southwest Joliet 3 bedroom, 1 1/2 bath ranch styled home that includes a side drive to a detached 2-car garage. All 3 bedrooms are located on the main level. Hardwood flooring on the main level is located in bedrooms and in the living room. U shaped kitchen offers 32 oak cabinets , prep area and table space for dining. Full, finished basement has a family room/bonus area, 1/2 bath/storage area and comes with a fireplace. Newer windows with the home. Detached garage, storage shed and sits on a deep 135 foot lot.

Purchase Price	$ 187,000
Address	2211 Webster Ave , Joliet, 60436, IL
MLS^® #	12184712
Listing Agent	Brent Wilk
Year Built	1952
Type	Singlefamily
Size	884 SF
Bedrooms	3
Bathrooms	2

Property History

Date	Price	Event
10/8/2024	192400	Listed
8/22/2024		Listing removed
6/4/2024	220000	Listed
10/5/2006	168000	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.	$ 29,940
Total Gross Income	$ 29,940
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.	$ 898
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.	$ 29,042	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	5.16 %
Property tax	$ 4,815	16.58 %
Total Expenses	$ 6,315	21.74 %
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.	$ 22,727	78.26 %

Cash Flow (Year 1)

Net Operating Income	$ 22,727	78.26 %
Annual Debt Service	$ 15,975	55.01 %
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.	$ 6,752	23.25 %
Income Tax Liability	$ 708	2.44 %
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.	$ 6,044	20.81 %

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).	21.74 %
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.	76.75 %

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.	$ 210,617
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.	16.07 %
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	4.84
Annual Depreciation	$ 5,440

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.	12.33 %
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.	22.57 %
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.	7.70 %
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.	16.01 %
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.	9.85

Financing		% of ARV
Down Payment	$ 45,400	15.39 %
HomeStyle	$ 181,600	61.56 %
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.		97.11 %
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		1.42

HomeStyle Financing of: Purchase + Repairs ($ 227,000)
Type	Amortized
Loan Amount	$ 181,600
Down payment (20%)	$ 45,400
Amortization	30 years
Interest Rate	7.99 %
Monthly Payment	$ 1,331.25

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	29,940	30,539	31,150	31,773	32,408	33,056	33,717	34,392	35,079	35,781	36,497	37,227	37,971	38,731	39,505	40,295	41,101	41,923	42,762	43,617	44,489	45,379	46,287	47,212	48,157	49,120	50,102	51,104	52,126	53,169
Vacancy Loss	0	898	916	934	953	972	992	1,012	1,032	1,052	1,073	1,095	1,117	1,139	1,162	1,185	1,209	1,233	1,258	1,283	1,308	1,335	1,361	1,389	1,416	1,445	1,474	1,503	1,533	1,564	1,595
Gross Operating Income	0	29,042	29,623	30,215	30,819	31,436	32,065	32,706	33,360	34,027	34,708	35,402	36,110	36,832	37,569	38,320	39,086	39,868	40,666	41,479	42,308	43,155	44,018	44,898	45,796	46,712	47,646	48,599	49,571	50,562	51,574
Expenses	0	6,315	6,441	6,570	6,702	6,836	6,972	7,112	7,254	7,399	7,547	7,698	7,852	8,009	8,169	8,333	8,499	8,669	8,843	9,019	9,200	9,384	9,571	9,763	9,958	10,157	10,360	10,568	10,779	10,995	11,214
Net Operating Income	0	22,727	23,181	23,645	24,118	24,600	25,092	25,594	26,106	26,628	27,161	27,704	28,258	28,823	29,400	29,988	30,587	31,199	31,823	32,459	33,109	33,771	34,446	35,135	35,838	36,555	37,286	38,031	38,792	39,568	40,359
Loan Payment	0	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975	15,975
Payment Interest Part	0	14,455	14,329	14,193	14,045	13,885	13,712	13,524	13,321	13,101	12,862	12,604	12,325	12,022	11,695	11,340	10,956	10,540	10,089	9,601	9,073	8,501	7,881	7,211	6,484	5,697	4,845	3,923	2,924	1,842	670
Payment Principal Part	0	1,520	1,646	1,782	1,930	2,090	2,263	2,451	2,654	2,874	3,113	3,371	3,650	3,953	4,280	4,635	5,019	5,435	5,886	6,374	6,902	7,474	8,094	8,764	9,491	10,278	11,130	12,052	13,051	14,133	15,305
Cash Flow
Repairs/Construction	40,000	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	-54,782	6,752	7,206	7,670	8,143	8,625	9,117	9,619	10,131	10,653	11,186	11,729	12,283	12,848	13,425	14,013	14,612	15,224	15,848	16,484	17,134	17,796	18,471	19,160	19,863	20,580	21,311	22,056	22,817	23,593	24,384
Depreciation	0	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440	5,440
Taxes	0	708	853	1,003	1,158	1,319	1,485	1,658	1,836	2,022	2,215	2,415	2,623	2,840	3,066	3,302	3,548	3,805	4,073	4,355	4,649	4,957	5,281	5,621	5,978	6,354	6,750	7,167	7,607	8,071	8,562
Cash Flow After Taxes	-54,782	6,044	6,353	6,667	6,985	7,306	7,632	7,962	8,295	8,631	8,971	9,314	9,660	10,008	10,358	10,711	11,064	11,419	11,775	12,130	12,485	12,838	13,190	13,539	13,884	14,225	14,561	14,889	15,210	15,521	15,822

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 (7.70%) & NOI	$ 524,146
Appreciation (3.00%)	$ 716,042
Gross Rent Multiplier	$ 523,712

Sale Proceeds

Projected Selling Price	$ 524,146
Costs of Sale (3.50%)	$ 18,345
Net Sale Proceeds Before Tax	$ 502,301

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	$ 502,301
Investor Cash Outlay	$ 54,782
Net Assets	$ 447,519
Average Yield
Annual Net Assets	$ 14,917
Average Cash Flow (After Taxes)	$ 10,388
Average Annual Gain (After Taxes)	$ 25,305
Average Annual Yield (After Taxes)	13.53 %

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: 2211 Webster Ave, Joliet RENTAL

Property Report :

2211 Webster Ave, Joliet, IL 60436

Executive Summary