30 Indianwood Dr, Thornton IL 60476

30 Indianwood Dr, Thornton, IL 60476

Singlefamily: 3 bedrooms , 2 bathrooms

Year built: 1959, Size: 1040 SF

Investment strategy: Rental Property

Purchase Price$ 175,000

Rent$ 2,400/mo

Monthly Cash Flow$ 606

Cash on Cash Return16.70 %

Financial Analysis

Cash on Cash Return	16.70 %
Internal Rate of Return (IRR)	18.80 %
Capitalization Rate	11.19 %
Gross Rent Multiplier (GRM)	6.08
Debt-coverage Ratio (DCR)	1.59
Operating Expense Ratio (OER)	29.88 %
After Repair Value	$ 175,000

Financial Breakdown

Purchase Price	$ 175,000
Purchase Costs	$ 8,550
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).	$ 183,550
Financing	$ 140,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 43,550
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.	$ 37,800
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	$ 2,400/mo
Gross Operating Income (GOI)	$ 27,936
Total Expenses	$ 8,347
Net Operating Income (NOI)	$ 19,589
Annual Debt Service	$ 12,316
Cash Flow Before Taxes (CFBT)	$ 7,273
Income Tax Liability	$ 839
Cash Flow After Taxes (CFAT)	$ 6,435

This Well-Maintained 3-Bedroom, 1.5 Bath Ranch with a Finished Basement is Ready for You to Move-in Today. The Kitchen Features a Bump-Out, which creates a True Eat-In Kitchen. There are Hardwood Floors Under All the Carpeting. The Home's Electric Service was Replaced Two Years Ago. The Garage's Siding and Roof were Replaced 6 Years ago.

Purchase Price	$ 175,000
Address	30 Indianwood Dr , Thornton, 60476, IL
MLS^® #	12204502
Listing Agent	Nicholas Radakovich
Year Built	1959
Type	Singlefamily
Size	1040 SF
Bedrooms	3
Bathrooms	2

Property History

Date	Price	Change	Event
12/3/2024	175000		Price Changed
11/7/2024	185000		Listed

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.	$ 28,800
Total Gross Income	$ 28,800
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.	$ 864
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.	$ 27,936	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	5.37 %
Property tax	$ 6,847	24.51 %
Total Expenses	$ 8,347	29.88 %
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.	$ 19,589	70.12 %

Cash Flow (Year 1)

Net Operating Income	$ 19,589	70.12 %
Annual Debt Service	$ 12,316	44.08 %
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.	$ 7,273	26.04 %
Income Tax Liability	$ 839	3.00 %
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.	$ 6,435	23.03 %

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).	29.88 %
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.	73.96 %

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.	$ 174,352
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.	18.80 %
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	5.00
Annual Depreciation	$ 5,091

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.	16.70 %
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.	28.76 %
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.	11.19 %
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.	16.46 %
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.	6.08

Financing		% of ARV
Down Payment	$ 35,000	20.00 %
HomeStyle	$ 140,000	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		1.59

HomeStyle Financing of: Purchase + Repairs ($ 175,000)
Type	Amortized
Loan Amount	$ 140,000
Down payment (20%)	$ 35,000
Amortization	30 years
Interest Rate	7.99 %
Monthly Payment	$ 1,026.29

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	28,800	29,376	29,964	30,563	31,174	31,798	32,433	33,082	33,744	34,419	35,107	35,809	36,525	37,256	38,001	38,761	39,536	40,327	41,133	41,956	42,795	43,651	44,524	45,415	46,323	47,249	48,194	49,158	50,141	51,144
Vacancy Loss	0	864	881	899	917	935	954	973	992	1,012	1,033	1,053	1,074	1,096	1,118	1,140	1,163	1,186	1,210	1,234	1,259	1,284	1,310	1,336	1,362	1,390	1,417	1,446	1,475	1,504	1,534
Gross Operating Income	0	27,936	28,495	29,065	29,646	30,239	30,844	31,460	32,090	32,731	33,386	34,054	34,735	35,430	36,138	36,861	37,598	38,350	39,117	39,899	40,697	41,511	42,342	43,188	44,052	44,933	45,832	46,749	47,684	48,637	49,610
Expenses	0	8,347	8,514	8,684	8,858	9,035	9,216	9,400	9,588	9,780	9,975	10,175	10,378	10,586	10,798	11,014	11,234	11,459	11,688	11,922	12,160	12,403	12,651	12,904	13,162	13,426	13,694	13,968	14,247	14,532	14,823
Net Operating Income	0	19,589	19,981	20,380	20,788	21,204	21,628	22,060	22,502	22,952	23,411	23,879	24,356	24,844	25,340	25,847	26,364	26,891	27,429	27,978	28,537	29,108	29,690	30,284	30,890	31,508	32,138	32,781	33,436	34,105	34,787
Loan Payment	0	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316	12,316
Payment Interest Part	0	11,144	11,047	10,941	10,827	10,704	10,571	10,426	10,269	10,100	9,916	9,717	9,502	9,268	9,016	8,742	8,446	8,125	7,778	7,402	6,995	6,554	6,076	5,559	4,999	4,392	3,735	3,024	2,254	1,420	517
Payment Principal Part	0	1,172	1,269	1,374	1,488	1,611	1,745	1,890	2,046	2,216	2,400	2,598	2,814	3,047	3,300	3,573	3,869	4,190	4,537	4,914	5,321	5,762	6,240	6,757	7,317	7,923	8,580	9,291	10,062	10,896	11,799
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	-43,550	7,273	7,665	8,065	8,472	8,888	9,312	9,745	10,186	10,636	11,095	11,563	12,041	12,528	13,025	13,532	14,049	14,576	15,114	15,662	16,222	16,793	17,375	17,969	18,574	19,192	19,822	20,465	21,121	21,789	22,471
Depreciation	0	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091	5,091
Taxes	0	839	961	1,087	1,217	1,352	1,492	1,636	1,785	1,940	2,101	2,268	2,441	2,621	2,808	3,003	3,207	3,419	3,640	3,871	4,113	4,366	4,631	4,909	5,200	5,506	5,828	6,166	6,523	6,898	7,295
Cash Flow After Taxes	-43,550	6,435	6,704	6,978	7,255	7,536	7,821	8,109	8,401	8,696	8,994	9,296	9,600	9,907	10,217	10,528	10,842	11,157	11,474	11,791	12,109	12,427	12,744	13,060	13,374	13,686	13,994	14,299	14,598	14,891	15,177

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 (11.19%) & NOI	$ 310,876
Appreciation (3.00%)	$ 424,771
Gross Rent Multiplier	$ 310,957

Sale Proceeds

Projected Selling Price	$ 310,876
Costs of Sale (3.50%)	$ 10,881
Net Sale Proceeds Before Tax	$ 299,995

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	$ 299,995
Investor Cash Outlay	$ 43,550
Net Assets	$ 256,445
Average Yield
Annual Net Assets	$ 8,548
Average Cash Flow (After Taxes)	$ 10,231
Average Annual Gain (After Taxes)	$ 18,779
Average Annual Yield (After Taxes)	10.73 %

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: 30 Indianwood Dr, Thornton RENTAL

Property Report :

30 Indianwood Dr, Thornton, IL 60476

Executive Summary