4424 Lisa Ln, Oak Forest IL 60452

4424 Lisa Ln, Oak Forest, IL 60452

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1960, Size: 920 SF

Investment strategy: Rental Property

Purchase Price$ 165,000

Rent$ 2,300/mo

Monthly Cash Flow$ 436

Cash on Cash Return10.03 %

Financial Analysis

Cash on Cash Return	10.03 %
Internal Rate of Return (IRR)	14.65 %
Capitalization Rate	7.41 %
Gross Rent Multiplier (GRM)	9.96
Debt-coverage Ratio (DCR)	1.35
Operating Expense Ratio (OER)	23.94 %
After Repair Value	$ 275,000
Profit/Equity From Rehab	$ 50,810

Financial Breakdown

Purchase Price	$ 165,000
Purchase Costs	$ 9,190
Repair/Construction Costs	$ 50,000
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 224,190
Financing	$ 172,000
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 52,190
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.	$ 46,440
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	$ 6,408
Net Operating Income (NOI)	$ 20,364
Annual Debt Service	$ 15,131
Cash Flow Before Taxes (CFBT)	$ 5,233
Income Tax Liability	$ 468
Cash Flow After Taxes (CFAT)	$ 4,765

Check out this 3-bedroom, 1-bath home with partially finished basement and spacious backyard. Home features a 3-panel picture window in the living room creating a bright and airy interior, eat in kitchen, hardwood floors, and a family room in the basement. Room for a garage at the end of the driveway. Sold as-is. Build yourself some sweat equity and make this home your own!

Purchase Price	$ 165,000
Address	4424 Lisa Ln , Oak Forest, 60452, IL
MLS^® #	12167494
Listing Agent	Ashley Kaehn
Year Built	1960
Type	Singlefamily
Size	920 SF
Bedrooms	3
Bathrooms	1

Property History

Date	Price	Change	Event
11/25/2024	165000		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	$ 4,908	18.33 %
Total Expenses	$ 6,408	23.94 %
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.	$ 20,364	76.06 %

Cash Flow (Year 1)

Net Operating Income	$ 20,364	76.06 %
Annual Debt Service	$ 15,131	56.52 %
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.	$ 5,233	19.55 %
Income Tax Liability	$ 468	1.75 %
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.	$ 4,765	17.80 %

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).	23.94 %
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.	80.45 %

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.	$ 179,849
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.	14.65 %
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	4.45
Annual Depreciation	$ 4,800

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.	10.03 %
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.	19.51 %
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.	7.41 %
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.	16.73 %
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.	9.96

Financing		% of ARV
Down Payment	$ 43,000	15.64 %
HomeStyle	$ 172,000	62.55 %
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.		104.24 %
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		1.35

HomeStyle Financing of: Purchase + Repairs ($ 215,000)
Type	Amortized
Loan Amount	$ 172,000
Down payment (20%)	$ 43,000
Amortization	30 years
Interest Rate	7.99 %
Monthly Payment	$ 1,260.88

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	6,408	6,536	6,667	6,800	6,936	7,075	7,216	7,361	7,508	7,658	7,811	7,968	8,127	8,289	8,455	8,624	8,797	8,973	9,152	9,335	9,522	9,712	9,907	10,105	10,307	10,513	10,723	10,938	11,156	11,380
Net Operating Income	0	20,364	20,771	21,187	21,610	22,043	22,484	22,933	23,392	23,860	24,337	24,824	25,320	25,826	26,343	26,870	27,407	27,955	28,515	29,085	29,667	30,260	30,865	31,482	32,112	32,754	33,409	34,077	34,759	35,454	36,163
Loan Payment	0	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131	15,131
Payment Interest Part	0	13,691	13,571	13,442	13,302	13,151	12,987	12,809	12,617	12,408	12,182	11,938	11,673	11,387	11,077	10,741	10,377	9,983	9,556	9,094	8,593	8,052	7,465	6,829	6,141	5,396	4,589	3,715	2,769	1,745	635
Payment Principal Part	0	1,440	1,559	1,688	1,828	1,980	2,144	2,322	2,514	2,722	2,948	3,192	3,457	3,744	4,054	4,390	4,754	5,148	5,575	6,037	6,537	7,079	7,666	8,301	8,989	9,734	10,541	11,415	12,361	13,386	14,496
Cash Flow
Repairs/Construction	50,000	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	-52,190	5,233	5,641	6,056	6,480	6,912	7,353	7,803	8,261	8,729	9,206	9,693	10,190	10,696	11,212	11,739	12,277	12,825	13,384	13,954	14,536	15,129	15,735	16,352	16,981	17,624	18,279	18,947	19,629	20,324	21,033
Depreciation	0	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800	4,800
Taxes	0	468	600	736	877	1,023	1,174	1,331	1,494	1,663	1,839	2,021	2,212	2,410	2,617	2,832	3,058	3,293	3,540	3,798	4,068	4,352	4,650	4,963	5,293	5,640	6,005	6,391	6,797	7,227	7,682
Cash Flow After Taxes	-52,190	4,765	5,041	5,320	5,603	5,889	6,179	6,472	6,768	7,066	7,368	7,672	7,978	8,286	8,596	8,907	9,219	9,532	9,844	10,157	10,468	10,777	11,084	11,389	11,689	11,984	12,274	12,556	12,831	13,096	13,351

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 (7.41%) & NOI	$ 488,034
Appreciation (3.00%)	$ 667,497
Gross Rent Multiplier	$ 488,172

Sale Proceeds

Projected Selling Price	$ 488,034
Costs of Sale (3.50%)	$ 17,081
Net Sale Proceeds Before Tax	$ 470,953

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	$ 470,953
Investor Cash Outlay	$ 52,190
Net Assets	$ 418,763
Average Yield
Annual Net Assets	$ 13,959
Average Cash Flow (After Taxes)	$ 8,627
Average Annual Gain (After Taxes)	$ 22,586
Average Annual Yield (After Taxes)	13.69 %

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: 4424 Lisa Ln, Oak Forest RENTAL

Property Report :

4424 Lisa Ln, Oak Forest, IL 60452

Executive Summary