37252 N Parma Ave, Lake Villa IL 60046

37252 N Parma Ave, Lake Villa, IL 60046

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1947, Size: 825 SF

Investment strategy: Rental Property

Purchase Price$ 175,000

Rent$ 2,300/mo

Monthly Cash Flow$ 775

Cash on Cash Return21.35 %

Financial Analysis

Cash on Cash Return	21.35 %
Internal Rate of Return (IRR)	21.88 %
Capitalization Rate	12.35 %
Gross Rent Multiplier (GRM)	6.34
Debt-coverage Ratio (DCR)	1.76
Operating Expense Ratio (OER)	19.26 %
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	$ 2,300/mo
Gross Operating Income (GOI)	$ 26,772
Total Expenses	$ 5,157
Net Operating Income (NOI)	$ 21,615
Annual Debt Service	$ 12,316
Cash Flow Before Taxes (CFBT)	$ 9,299
Income Tax Liability	$ 1,345
Cash Flow After Taxes (CFAT)	$ 7,954

Charming Cape Cod in Venetian Village on a near 1/4 acre ? Escape the city?s hustle while still staying connected to shopping, dining, and entertainment. Nestled in the serene, unincorporated area of Venetian Village, known for its laid-back lifestyle and abundant lakes, this cozy Cape Cod offers everything you need in a home without the extras you don?t. With an attached garage and room for personalization, this gem is waiting for your personal touch. Sold in as-is, where-is condition, it's the perfect opportunity to earn instant equity by adding your updates. Plus, with low taxes and an affordable price, this home is exactly what the doctor ordered. Just a short ride to the METRA commuter rail, offering quick access to downtown. Whether you're looking for a peaceful retreat or a solid investment, this home has it all!

Purchase Price	$ 175,000
Address	37252 N Parma Ave , Lake Villa, 60046, IL
MLS^® #	12166799
Listing Agent	Dick Barr
Year Built	1947
Type	Singlefamily
Size	825 SF
Bedrooms	3
Bathrooms	1

Property History

Date	Price	Event
11/13/2024	175000	Price Changed
9/26/2024	185000	Listed
6/10/2018	160000	Sold
8/10/2014	60000	Sold
7/15/2014	64900	Relisted
7/14/2014	64900	Listing removed
7/7/2014	64900	Price Changed
6/29/2014	69900	Relisted
6/21/2014	69900	Listing removed
6/2/2014	69900	Relisted
5/30/2014	69900	Listing removed
5/11/2014	725	Listing removed
5/11/2014	69900	Listed
4/29/2014	975	Listed for rent
12/9/2010	92500	Listing removed
11/26/2010	92500	Price Changed
10/22/2010	109900	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.	$ 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	$ 3,657	13.66 %
Total Expenses	$ 5,157	19.26 %
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.	$ 21,615	80.74 %

Cash Flow (Year 1)

Net Operating Income	$ 21,615	80.74 %
Annual Debt Service	$ 12,316	46.00 %
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.	$ 9,299	34.74 %
Income Tax Liability	$ 1,345	5.02 %
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.	$ 7,954	29.71 %

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).	19.26 %
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.	65.26 %

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.	$ 203,759
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.	21.88 %
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	5.68
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.	21.35 %
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.	33.41 %
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.	12.35 %
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.	15.77 %
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.	6.34

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		1.76

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	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	5,157	5,260	5,365	5,473	5,582	5,694	5,808	5,924	6,042	6,163	6,286	6,412	6,540	6,671	6,805	6,941	7,079	7,221	7,365	7,513	7,663	7,816	7,973	8,132	8,295	8,461	8,630	8,802	8,978	9,158
Net Operating Income	0	21,615	22,047	22,488	22,938	23,397	23,865	24,342	24,829	25,325	25,832	26,349	26,876	27,413	27,961	28,521	29,091	29,673	30,266	30,872	31,489	32,119	32,761	33,416	34,085	34,766	35,462	36,171	36,894	37,632	38,385
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	9,299	9,732	10,173	10,622	11,081	11,549	12,026	12,513	13,010	13,516	14,033	14,560	15,098	15,646	16,205	16,775	17,357	17,951	18,556	19,173	19,803	20,446	21,101	21,769	22,451	23,146	23,855	24,579	25,317	26,069
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	1,345	1,477	1,614	1,755	1,900	2,051	2,206	2,367	2,534	2,706	2,885	3,071	3,263	3,464	3,672	3,888	4,114	4,349	4,595	4,851	5,119	5,399	5,692	5,999	6,321	6,659	7,014	7,387	7,780	8,194
Cash Flow After Taxes	-43,550	7,954	8,254	8,559	8,868	9,181	9,498	9,820	10,146	10,476	10,810	11,148	11,489	11,834	12,182	12,533	12,887	13,243	13,601	13,961	14,323	14,685	15,047	15,409	15,770	16,130	16,487	16,841	17,191	17,536	17,875

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 (12.35%) & NOI	$ 310,809
Appreciation (3.00%)	$ 424,771
Gross Rent Multiplier	$ 310,744

Sale Proceeds

Projected Selling Price	$ 310,809
Costs of Sale (3.50%)	$ 10,878
Net Sale Proceeds Before Tax	$ 299,931

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	$ 299,931
Investor Cash Outlay	$ 43,550
Net Assets	$ 256,381
Average Yield
Annual Net Assets	$ 8,546
Average Cash Flow (After Taxes)	$ 12,196
Average Annual Gain (After Taxes)	$ 20,742
Average Annual Yield (After Taxes)	11.85 %

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: 37252 N Parma Ave, Lake Villa RENTAL

Property Report :

37252 N Parma Ave, Lake Villa, IL 60046

Executive Summary