Kenwood Chicago - Apartment Building - Income Analysis
This property caught my attention. It is a large courtyard building for sale in
Chicago’s historic Kenwood neighborhood. It is located at 4408 S Drexel Blvd.
This property is currently listed by:
Kandice Robins with Robins Realty, LLC.
I decided to do a quick analysis of this property for all the investors out there.
I think this property is a good buy. So, if you are an investor and you deal
with large multi-family properties, I can assist you with buying this money maker.
ANALYSIS
This property has 49 units. Most of the units are 1 bedrooms. The mix is as follows:
1 bedroom units: 33
2 bedroom units: 06
Studio units: 10
The building is 92% rented. There are only 4 or 5 vacant units.
The rental demand in the Kenwood neighborhood is very strong.
So it should be relatively easy to fill the vacancies.
KEY NUMBERS:
* Asking Price: $2,500,000
* Annual Gross Income: $438,132
* Estimated Annual Expenses: $206,081
* Net Operating Income: $232,051
* Cap Rate: 9.28%
For more detail, please review the image below. The expenses are based on
conservative assumptions. These expense estimates are higher, and more conservative,
than what appears on the actual MLS listing.
Also, the listing mentioned that the Real Estate taxes are currently being
disputed. So it is possible that the Cap Rate may increase if the taxes
are successfully reduced.
Kenwood Chicago - Apartment Building - Income Analysis
As you can see, even with the more conservative numbers, the property appears
to be a solid deal. Of course, you can adjust the purchase price to get the cap rate
that you need. Due to the strong rental demand in the area, I think that if you
could get this property for a cap rate of 10, then this would be a great addition
to your portfolio.
For more information on multi-family investment properties in the Kenwood Chicago area,
please send an e-mail to mark@markkillion.com
Until the next time,
Mark Killion
Real Estate Broker
Century 21 Affiliated
5200 S. Harper Ave
Chicago, IL 60615
24 Hour Voice Mail: 312-242-1822
Send me a note!
Visit me online: www.773property.com
