Real Estate Taxes (annual): $2,391.72
Insurance (annual): $520
Utilities: Owner Pays Water - ~$50/mo
Tenant pays all other utilities.
Gross annual rent: $18,000 ($1,500/mo)
Factoring in vacancy (8%), repairs and maintenance (5%), reserves (cap ex @ 5%), management (9%), and all other listed costs, we project a 8.86% ROI at a purchase price of $106,000.
A wide range of options
Any investor looking to acquire this home will have the option to rehab and turn this around for a great flip.
In the last six months, we're seeing similar homes selling at retail for as high as $229,000 - which, frankly, are huge outliers. But a quick CMA shows that a 4 bed brick home with 2 basement bedrooms can push well over $160,000 in this market.
These are comps that are within walking distance of our property here at 7717 S. Ada:
- 7628 S Loomis Blvd closed on 02/08/2017 at $164,900
- 7731 S May St closed on 03/30/2017 at $169,900
- 7533 S Honore St closed on 12/30/2016 at $171,000
- 8326 S Ada St closed on 06/20/2017 at $183,000
- 8337 S Paulina St closed on 04/07/2017 at $195,000
Email me at Ken.Yu@ChicagoRES.com. My work phone is (773) 466-6724.