23036 Lakeshore Dr, Richton Park IL 60471

23036 Lakeshore Dr, Richton Park, IL 60471

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 1975, Size: 1332 SF

Investment strategy: Rental Property

Purchase Price$ 189,445

Rent$ 2,450/mo

Monthly Cash Flow$ 357

Cash on Cash Return9.17 %

Financial Analysis

Cash on Cash Return	9.17 %
Internal Rate of Return (IRR)	14.86 %
Capitalization Rate	5.89 %
Gross Rent Multiplier (GRM)	10.17
Debt-coverage Ratio (DCR)	1.32
Operating Expense Ratio (OER)	38.24 %
After Repair Value	$ 299,000
Profit/Equity From Rehab	$ 100,743

Financial Breakdown

Purchase Price	$ 189,445
Purchase Costs	$ 8,782
Repair/Construction Costs	$ 30
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 198,257
Financing	$ 151,580
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 46,677
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.	$ 40,927
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	$ 2,450/mo
Gross Operating Income (GOI)	$ 28,518
Total Expenses	$ 10,905
Net Operating Income (NOI)	$ 17,613
Annual Debt Service	$ 13,334
Cash Flow Before Taxes (CFBT)	$ 4,279
Income Tax Liability	$ 9
Cash Flow After Taxes (CFAT)	$ 4,270

Home needs some work but perfect for investors or handyman special. Lot backs to wooded area. This is a find at this price, enjoy this quiet and friendly neighborhood. Great yard for the kids to play while parents relax on the large beautiful outdoor patio. Ton of room for storage. Investor special.

Purchase Price	$ 189,445
Address	23036 Lakeshore Dr , Richton Park, 60471, IL
MLS^® #	12274756
Listing Agent	Steve Merritt
Year Built	1975
Type	Singlefamily
Size	1332 SF
Bedrooms	3
Bathrooms	2

Property History

Date	Price	Event
2/13/2025	195000	Price Changed
2/4/2025	209900	Listed
3/29/2018	125000	Sold
12/7/2017	119900	Listed
11/15/2017	75000	Sold
11/4/1991	96500	Sold
10/13/1976	51500	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.	$ 29,400
Total Gross Income	$ 29,400
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.	$ 882
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.	$ 28,518	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	5.26 %
Property tax	$ 9,405	32.98 %
Total Expenses	$ 10,905	38.24 %
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.	$ 17,613	61.76 %

Cash Flow (Year 1)

Net Operating Income	$ 17,613	61.76 %
Annual Debt Service	$ 13,334	46.76 %
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.	$ 4,279	15.00 %
Income Tax Liability	$ 9	0.03 %
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.	$ 4,270	14.97 %

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).	38.24 %
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.	85.00 %

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.	$ 180,434
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.	14.86 %
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	4.87
Annual Depreciation	$ 5,511

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.	9.17 %
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.	21.34 %
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.	5.89 %
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.	15.52 %
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.	10.17

Financing		% of ARV
Down Payment	$ 37,895	12.67 %
HomeStyle	$ 151,580	50.70 %
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.		80.01 %
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		1.32

HomeStyle Financing of: Purchase + Repairs ($ 189,475)
Type	Amortized
Loan Amount	$ 151,580
Down payment (20%)	$ 37,895
Amortization	30 years
Interest Rate	7.99 %
Monthly Payment	$ 1,111.18

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	29,400	29,988	30,588	31,200	31,824	32,460	33,109	33,771	34,447	35,136	35,838	36,555	37,286	38,032	38,793	39,569	40,360	41,167	41,990	42,830	43,687	44,561	45,452	46,361	47,288	48,234	49,199	50,182	51,186	52,210
Vacancy Loss	0	882	900	918	936	955	974	993	1,013	1,033	1,054	1,075	1,097	1,119	1,141	1,164	1,187	1,211	1,235	1,260	1,285	1,311	1,337	1,364	1,391	1,419	1,447	1,476	1,505	1,536	1,566
Gross Operating Income	0	28,518	29,088	29,670	30,264	30,869	31,486	32,116	32,758	33,413	34,082	34,763	35,459	36,168	36,891	37,629	38,381	39,149	39,932	40,731	41,545	42,376	43,224	44,088	44,970	45,869	46,787	47,723	48,677	49,651	50,644
Expenses	0	10,905	11,123	11,346	11,572	11,804	12,040	12,281	12,526	12,777	13,032	13,293	13,559	13,830	14,107	14,389	14,677	14,970	15,270	15,575	15,887	16,204	16,528	16,859	17,196	17,540	17,891	18,249	18,614	18,986	19,366
Net Operating Income	0	17,613	17,965	18,325	18,691	19,065	19,446	19,835	20,232	20,636	21,049	21,470	21,900	22,338	22,784	23,240	23,705	24,179	24,662	25,156	25,659	26,172	26,695	27,229	27,774	28,329	28,896	29,474	30,063	30,665	31,278
Loan Payment	0	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334	13,334
Payment Interest Part	0	12,065	11,960	11,846	11,723	11,590	11,445	11,288	11,119	10,935	10,736	10,521	10,288	10,035	9,762	9,465	9,145	8,797	8,421	8,014	7,573	7,096	6,579	6,019	5,412	4,755	4,044	3,274	2,440	1,537	560
Payment Principal Part	0	1,269	1,374	1,488	1,611	1,745	1,889	2,046	2,216	2,399	2,598	2,813	3,047	3,299	3,573	3,869	4,189	4,537	4,913	5,320	5,761	6,239	6,756	7,316	7,922	8,579	9,290	10,060	10,894	11,797	12,775
Cash Flow
Repairs/Construction	30	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	-46,677	4,279	4,631	4,990	5,357	5,731	6,112	6,501	6,898	7,302	7,715	8,136	8,565	9,003	9,450	9,906	10,371	10,845	11,328	11,822	12,325	12,838	13,361	13,895	14,440	14,995	15,562	16,140	16,729	17,330	17,944
Depreciation	0	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511	5,511
Taxes	0	9	124	242	364	491	623	759	901	1,048	1,201	1,360	1,525	1,698	1,878	2,066	2,262	2,468	2,683	2,908	3,144	3,391	3,651	3,925	4,213	4,516	4,835	5,172	5,528	5,904	6,302
Cash Flow After Taxes	-46,677	4,270	4,508	4,749	4,993	5,240	5,489	5,742	5,997	6,255	6,514	6,776	7,040	7,305	7,572	7,840	8,108	8,377	8,646	8,914	9,181	9,446	9,710	9,970	10,227	10,479	10,727	10,968	11,201	11,426	11,642

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 (5.89%) & NOI	$ 531,035
Appreciation (3.00%)	$ 725,751
Gross Rent Multiplier	$ 530,974

Sale Proceeds

Projected Selling Price	$ 531,035
Costs of Sale (3.50%)	$ 18,586
Net Sale Proceeds Before Tax	$ 512,449

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	$ 512,449
Investor Cash Outlay	$ 46,677
Net Assets	$ 465,772
Average Yield
Annual Net Assets	$ 15,526
Average Cash Flow (After Taxes)	$ 7,589
Average Annual Gain (After Taxes)	$ 23,115
Average Annual Yield (After Taxes)	12.20 %

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: 23036 Lakeshore Dr, Richton Park RENTAL

Property Report :

23036 Lakeshore Dr, Richton Park, IL 60471

Executive Summary