Chicago Property: 5609 S Green St, Chicago IL 60621

5609 S Green St, Chicago, IL 60621

Singlefamily: 4 bedrooms , 2 bathrooms

Year built: 1897, Size: 1848 SF

Investment strategy: Rental Property

Purchase Price$ 130,000

Rent$ 1,650/mo

Monthly Cash Flow$ 502

Cash on Cash Return30.88 %

Financial Analysis

Cash on Cash Return	30.88 %
Internal Rate of Return (IRR)	33.69 %
Capitalization Rate	10.11 %
Gross Rent Multiplier (GRM)	6.57
Debt-coverage Ratio (DCR)	1.85
Operating Expense Ratio (OER)	30.15 %
After Repair Value	$ 130,000

Financial Breakdown

Purchase Price	$ 130,000
Purchase Costs	$ 0
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).	$ 130,000
Financing	$ 110,500
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 19,500
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.	$ 19,500
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.	$ 0

Operating Analysis

Rent	$ 1,650/mo
Gross Operating Income (GOI)	$ 18,810
Total Expenses	$ 5,670
Net Operating Income (NOI)	$ 13,140
Annual Debt Service	$ 7,118
Cash Flow Before Taxes (CFBT)	$ 6,021
Income Tax Liability	$ 967
Cash Flow After Taxes (CFAT)	$ 5,054

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.	$ 19,800
Total Gross Income	$ 19,800
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.	$ 990
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.	$ 18,810	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).
Property manager	$ 1,505	8.00 %
Insurance	$ 500	2.66 %
Repairs	$ 941	5.00 %
Property tax	$ 1,525	8.11 %
Utilities	$ 1,200	6.38 %
Total Expenses	$ 5,670	30.15 %
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.	$ 13,140	69.85 %

Cash Flow (Year 1)

Net Operating Income	$ 13,140	69.85 %
Annual Debt Service	$ 7,118	37.84 %
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.	$ 6,021	32.01 %
Income Tax Liability	$ 967	5.14 %
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.	$ 5,054	26.87 %

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).	30.15 %
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.	67.99 %

Financing		% of ARV
Down Payment	$ 19,500	15.00 %
Loan	$ 110,500	85.00 %
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.		85.00 %
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).		85.00 %
Debt Coverage Ratio		1.85

Loan Financing of: Purchase price ($ 130,000)
Type	Amortized
Loan Amount	$ 110,500
Down payment (15%)	$ 19,500
Amortization	30 years
Interest Rate	5.00 %
Monthly Payment	$ 593.19

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.

Lender Summary

Financing of: Purchase price
Type: Amortized
Amortization: 30 years

Loan Assumptions		% of ARV
After Repair Value	$ 130,000	100.00 %
Purchase Price	$ 130,000	100.00 %
Purchase Costs	$ 0	0.00 %
Repair Costs	$ 0	0.00 %
Holding Costs	$ 0	0.00 %
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 130,000	100.00 %
Financed Amount	$ 130,000	100.00 %
Down payment (15%)	$ 19,500	15.00 %
Loan Amount	$ 110,500	85.00 %

Lender Returns
Interest Rate	5.00 %
Interest Income	$ 103,048
Total Income to Lender	$ 103,048
Lender's ROI	93.26 %
Lender's Annualized ROI	3.11 %

Property Report: Chicago Property RENTAL

Property Report :

Chicago Property

5609 S Green St, Chicago, IL 60621

Executive Summary

5609 S Green St, Chicago, IL 60621

Financial Analysis

Financial Breakdown

Total Capital Needed

Total Capital Needed

Cash out of Pocket

Cash out of Pocket

Cash at Closing

Cash at Closing

Cash During Rehab

Cash During Rehab

Operating Analysis

Operating Analysis

Annual Property Operating Data

Gross Scheduled Income (GSI)

Gross Scheduled Income (GSI)

Vacancy and Credit Loss

Vacancy and Credit Loss

Gross Operating Income (GOI)

Gross Operating Income (GOI)

Operating Expenses

Operating Expenses

Net Operating Income (NOI)

Net Operating Income (NOI)

Cash Flow (Year 1)

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Operating Ratios

Operating Expense Ratio

Operating Expense Ratio

Break-Even Ratio (BER)

Break-Even Ratio (BER)

Financing Overview

Loan to Value Ratio

Loan to Value Ratio

Loan to Cost Ratio

Loan to Cost Ratio

Lender Report

Lender Summary

Total Capital Needed

Total Capital Needed

Photos