22829 Redwood Dr, Richton Park IL 60471

22829 Redwood Dr, Richton Park, IL 60471

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 1972, Size: 1489 SF

Investment strategy: Rental Property

Purchase Price$ 178,073

Rent$ 2,300/mo

Monthly Cash Flow$ 226

Cash on Cash Return5.25 %

Financial Analysis

Cash on Cash Return	5.25 %
Internal Rate of Return (IRR)	12.44 %
Capitalization Rate	6.11 %
Gross Rent Multiplier (GRM)	10.51
Debt-coverage Ratio (DCR)	1.18
Operating Expense Ratio (OER)	33.84 %
After Repair Value	$ 290,000
Profit/Equity From Rehab	$ 67,768

Financial Breakdown

Purchase Price	$ 178,073
Purchase Costs	$ 9,159
Repair/Construction Costs	$ 35,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 222,232
Financing	$ 170,458
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 51,774
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.	$ 46,024
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	$ 2,300/mo
Gross Operating Income (GOI)	$ 26,772
Total Expenses	$ 9,060
Net Operating Income (NOI)	$ 17,712
Annual Debt Service	$ 14,995
Cash Flow Before Taxes (CFBT)	$ 2,717
Income Tax Liability	$ -259
Cash Flow After Taxes (CFAT)	$ 2,976

Priced to Sell and Move-In Ready just waiting for your personal touch to make it your very own! This is a Quad style home with an open floor plan featuring a nice and roomy Living Room, Dining Area, and Eat-in kitchen where all appliances will stay, extra refrigerator. Upstairs you have 3 bedrooms and a full-sized bathroom with whirlpool. The lower level features a family/rec room with patio exit, another full bath with shower, and a finished basement. Outdoors, you will find a beautiful large, fenced-in yard with plenty of space to barbeque and entertain your family and friends. Listing Agent will present offers to seller with a Preapproval Letter and Certified Earnest Money Deposit. Agents must accompany their clients. Home is Sold As-Is. Disclosure: Client's daughter is the daughter-n-law of the Realtor

Purchase Price	$ 178,073
Address	22829 Redwood Dr , Richton Park, 60471, IL
MLS^® #	12211806
Listing Agent	Claudette M Pendleton
Year Built	1972
Type	Singlefamily
Size	1489 SF
Bedrooms	3
Bathrooms	2

Property History

Date	Price	Event
12/12/2024	205000	Price Changed
11/15/2024	215000	Listed
9/8/2013	175000	Listing removed
9/26/2012	175000	Listed
7/9/2008	199900	Listing removed
4/4/2008	199900	Listed
8/29/2001	147500	Sold
7/8/1985	83500	Sold
11/28/1982	89000	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.	$ 27,600
Total Gross Income	$ 27,600
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.	$ 828
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.	$ 26,772	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	5.60 %
Property tax	$ 7,560	28.24 %
Total Expenses	$ 9,060	33.84 %
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.	$ 17,712	66.16 %

Cash Flow (Year 1)

Net Operating Income	$ 17,712	66.16 %
Annual Debt Service	$ 14,995	56.01 %
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.	$ 2,717	10.15 %
Income Tax Liability	$ -259	-0.97 %
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.	$ 2,976	11.12 %

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).	33.84 %
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.	89.85 %

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.	$ 150,900
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.	12.44 %
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	3.91
Annual Depreciation	$ 5,180

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.	5.25 %
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.	15.57 %
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.	6.11 %
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.	15.50 %
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.	10.51

Financing		% of ARV
Down Payment	$ 42,615	14.69 %
HomeStyle	$ 170,458	58.78 %
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.		95.72 %
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		1.18

HomeStyle Financing of: Purchase + Repairs ($ 213,073)
Type	Amortized
Loan Amount	$ 170,458
Down payment (20%)	$ 42,615
Amortization	30 years
Interest Rate	7.99 %
Monthly Payment	$ 1,249.58

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	27,600	28,152	28,715	29,289	29,875	30,473	31,082	31,704	32,338	32,985	33,644	34,317	35,003	35,704	36,418	37,146	37,889	38,647	39,420	40,208	41,012	41,832	42,669	43,522	44,393	45,281	46,186	47,110	48,052	49,013
Vacancy Loss	0	828	845	861	879	896	914	932	951	970	990	1,009	1,030	1,050	1,071	1,093	1,114	1,137	1,159	1,183	1,206	1,230	1,255	1,280	1,306	1,332	1,358	1,386	1,413	1,442	1,470
Gross Operating Income	0	26,772	27,307	27,854	28,411	28,979	29,558	30,150	30,753	31,368	31,995	32,635	33,288	33,953	34,632	35,325	36,032	36,752	37,487	38,237	39,002	39,782	40,577	41,389	42,217	43,061	43,922	44,801	45,697	46,611	47,543
Expenses	0	9,060	9,241	9,426	9,615	9,807	10,003	10,203	10,407	10,615	10,828	11,044	11,265	11,490	11,720	11,954	12,194	12,437	12,686	12,940	13,199	13,463	13,732	14,007	14,287	14,572	14,864	15,161	15,464	15,774	16,089
Net Operating Income	0	17,712	18,066	18,428	18,796	19,172	19,555	19,947	20,346	20,752	21,167	21,591	22,023	22,463	22,912	23,371	23,838	24,315	24,801	25,297	25,803	26,319	26,845	27,382	27,930	28,489	29,058	29,640	30,232	30,837	31,454
Loan Payment	0	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995	14,995
Payment Interest Part	0	13,568	13,450	13,322	13,183	13,033	12,870	12,694	12,503	12,297	12,073	11,831	11,569	11,285	10,977	10,644	10,284	9,893	9,470	9,012	8,516	7,979	7,398	6,768	6,086	5,348	4,548	3,682	2,744	1,729	629
Payment Principal Part	0	1,427	1,545	1,673	1,812	1,962	2,125	2,301	2,491	2,698	2,922	3,164	3,426	3,710	4,018	4,351	4,711	5,102	5,525	5,983	6,478	7,015	7,597	8,227	8,909	9,647	10,447	11,313	12,250	13,266	14,366
Cash Flow
Repairs/Construction	35,000	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	-51,774	2,717	3,071	3,433	3,801	4,177	4,561	4,952	5,351	5,758	6,173	6,596	7,028	7,468	7,917	8,376	8,843	9,320	9,806	10,302	10,808	11,324	11,851	12,388	12,935	13,494	14,064	14,645	15,237	15,842	16,459
Depreciation	0	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180	5,180
Taxes	0	-259	-141	-19	108	240	376	518	666	819	979	1,145	1,318	1,500	1,689	1,887	2,094	2,310	2,538	2,776	3,027	3,290	3,567	3,859	4,166	4,490	4,833	5,194	5,577	5,982	6,411
Cash Flow After Taxes	-51,774	2,976	3,212	3,451	3,693	3,937	4,184	4,434	4,685	4,939	5,194	5,451	5,709	5,969	6,229	6,489	6,750	7,009	7,268	7,526	7,781	8,034	8,284	8,529	8,769	9,004	9,231	9,450	9,660	9,860	10,048

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 (6.11%) & NOI	$ 514,792
Appreciation (3.00%)	$ 703,906
Gross Rent Multiplier	$ 515,130

Sale Proceeds

Projected Selling Price	$ 514,792
Costs of Sale (3.50%)	$ 18,018
Net Sale Proceeds Before Tax	$ 496,774

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	$ 496,774
Investor Cash Outlay	$ 51,774
Net Assets	$ 445,000
Average Yield
Annual Net Assets	$ 14,833
Average Cash Flow (After Taxes)	$ 6,257
Average Annual Gain (After Taxes)	$ 21,090
Average Annual Yield (After Taxes)	11.84 %

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: 22829 Redwood Dr, Richton Park RENTAL

Property Report :

22829 Redwood Dr, Richton Park, IL 60471

Executive Summary