Bronzeville Mural

Bronzeville Real Estate Analysis – 2019

Bronzeville Single Family Homes

Bronzeville Single Family Homes sold well in 2019.
A total of 112 homes were sold. This is up 33% versus 2018.
The average selling price for a single family home was $486,975.
The average selling price was up 18% versus the previous year.
The average market time increased by 23 days versus the previous year.

Bronzeville Condos

Bronzeville Condos also sold well in 2019.
A total of 272 condos were sold. This is up 12% versus 2018.
The average selling price for a Bronzeville condo was $199,455.
The average selling price was up 5% versus the previous year.
The average market time decreased by 4 days versus the previous year.

Bronzeville 2 to 4 unit buildings

39 multi-unit properties were sold in 2019.
That is an 8% increase versus 2018.
The average selling price was $341,995.
The average selling price was up 15% versus the previous year.
The average market time decreased by 73 days versus the previous year.

Bronzeville Rentals

244 units were rented in 2019.
That is a 24% increase versus 2018.
The average rental price was $1,530.
The average rental price was actually down 4% versus the previous year.
The average market time increased by 5 days versus the previous year.

Bronzeville Land

19 parcels of land were sold in 2019.
That is a 27% decrease versus 2018.
The average selling price was $90,289.
The average selling price decreased by -44% versus 2018.
However, this may not be an apples to apples comparison.
This is because every parcel of land is a different size.
Land value is driven largely by location, square footage and zoning type.

Summary

Overall, 2019 was a great year for Bronzeville real estate.
The biggest gains were seen in the Single Family Home category.
Values for Single family homes were up 18% in 2019.
This was driven largely by sales of new construction homes.

Multi-Unit properties also appear to be in great demand.
Values are up 15% versus the previous year.
Also, the average time it took to sell a multi-unit property was
cut in half versus 2018.
This is an indication that demand for this property type is high.

Contact Mark

If you have any questions about Bronzeville real estate,
please call or text me at 773-354-6693.

Thanks, Mark Killion
Kale Realty – Chicago, IL
Cell: 773-354-6693
email: mark@markkillion.com
website: www.buybronzeville.com

Mark Killion, Realtor

Close to Lake Shore Drive. Walk to the Oakwood Beach and lakefront.
Public transportation at your doorstep. The Bronzeville real estate market is hot.
Schedule your showing today. Buy Bronzeville! Asking Price $280,000.

Front

For more information, please call or text Mark at 773-354-6693.

Until the next time,

Mark Killion
Kale Realty
2447 N. Ashland
Chicago, IL 60614

Cell: 773-354-6693

Send me a note!

Visit me online: https://www.buybronzeville.com

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Bronzeville Selling Prices – Condo Trends

Bronzeville Selling Prices Single Family Homes

A Bronzeville Investment property that recently sold for $375,000

Available Bronzeville Investment Properties

Let’s look at buying an investment property in the Bronzeville neighborhood.
We will focus on Two-to-Four Unit investment properties.
I like to analyze properties that are fairly turn-key investments.
This means that the units are in decent condition and they are already rented out.

Of course, you can find fixer upper properties that are not yet rented.
But those are harder to analyze, because there are so many unknowns
(i.e. cost of repairs, building permits, length of time to find tenants, etc).

It is nice to see that the Bronzeville real estate market is alive and well.
Bronzeville usually has a limited supply of available investment properties.
I would say that the demand for quality investments far exceeds the supply.

Owners of Bronzeville properties tend to hold on to them for long periods of time.
So the turnover of properties in Bronzeville is lower than in some other neighborhoods.
But, I found 5 recent comps for this analysis, so this will give us a good idea of
the current market.

Here are the details of the 5 investment properties:

1) Price: $390,000 .. (4 units – 14 beds)..Gross Income: $57,084.. GIM: 6.83
2) Price: $380,000 .. (3 units – 11 beds)..Gross Income: $54,960.. GIM: 6.91
3) Price: $375,000 .. (4 units – 11 beds)..Gross Income: $52,500.. GIM: 7.14
4) Price: $331,000 .. (3 units – 8 beds) ..Gross Income: $37,620.. GIM: 8.80
5) Price: $317,000 .. (2 units – 7 beds) ..Gross Income: $32,400.. GIM: 9.78

Property #3 is right in the middle and it represents a typical Bronzeville
investment property. Property #3 will be the subject of this analysis.
Now let’s dig into the numbers:

Income

This property sold for $375,000. It was fully rented and generating an annual
income of $52,500. Here is the income of each unit:

1) 2bed/2bath $950
2) 3bed/2bath $1,110
3) 3bed/2bath $1,020
4) 3bed/2bath $1,295

Each unit was recently rehabbed with hardwood floors and updated kitchens.
Total monthly income was $4,375.
There is also room to increase rents every year until they are at the market rate.
The current market rate for a rehabbed 3bed/2bath unit in Bronzeville is $1,500.

This building’s “Gross Income Multiplier” was a little over 7.
This just means that if you multiply the annual rental income by 7,
you will arrive close to the selling price. So right away, we have
a good metric to use when searching for potential properties in Bronzeville.
This metric is also known as the GRM (Gross Rental Multiplier).

This is also a useful metric if you are thinking about selling and you own a
4 unit property in Bronzeville. Multiply your annual rental income by 7 and
that will be a good estimate of its current market value.

Expenses

Now let’s dig a little deeper and analyze estimated annual expenses:

Property Management: $5,250
Repairs: $3,750
Taxes: $3,600
Vacancy: $2,625
Collections: $2,625
Insurance: $2,000
Water Bill: $1,500
Landscaping: $1,200
===============================
Total Annual Expenses: $22,550

So our estimated annual expenses come to $22,550. This is about 43% of our
Gross Income. I think typical expenses for this type of property will run you
between 40% and 50%.
So our estimate looks pretty good.

To get our Net Income, we just subtract expenses from our gross income.
Net Income = $29,950

Cap Rate

Using our Net Income, we can calculate our “Cap Rate”. Cap Rate, short
for capitalization rate, is defined as [Net Income] divided by [purchase price].
So using this formula, we find that our Cap Rate for this property is 8%.
You may see the term “Cap Rate” quite a bit when you start looking for investment properties.
It gives you a way to compare different investment opportunities.
But it is just a “rule of thumb” metric that will help filter out bad investments.
One thing that has a huge impact on the “Cap Rate” is the amount of expenses.

If the owner is understating the expenses, it can skew the Cap Rate and
make it look higher. On the other hand, if the owner had a huge one time
expense last year (replaced the boiler), it can make the Cap Rate look lower.
When you are doing your analysis, if you estimate expenses at about 40%,
I think you will be OK.

In Bronzeville, most of the good investment properties will have a Cap Rate of about 8%.
Some will be higher, some will be lower. But the average Cap Rate in Bronzeville is about
8% to 9%. In other neighborhods where purchase prices are higher, the cap rates will be lower.
Hyde Park is a great example. Cap rates in Hyde Park are about 6%.
OK… enough about Cap Rates, let’s continue.

Cash Flow

So now we have about $30,000 in annual net income.
That is decent income for one property, but how much cash flow will be generated?
What is cash flow you say? Cash flow is what goes in your pocket!
It is your Net Income minus your mortgage payments (debt service).
If you bought the property in cash, then obviously your Net Income is your cash flow.
But most investors will use a mortgage when purchasing a property.

SCENARIO #1

So if we get a conventional loan and put down 20% ($75,000), our monthly payment will
be about $1,520. This assumes the loan had a 4.5% APR.
Once we subtract the mortgage from our monthly net income, we are left with
$976 every month. This means our annual cash flow is $11,710.

This may not sound like a lot of cash flow for a $375,000 property, but remember,
we financed this property.
Our actual cash invested in this property is $75,000 plus closing costs.
If we figure closing costs to be about $4,000, then our
cash-on-cash return on investment (ROI) is 14.8%.

That is pretty good considering Bank of America is currently only paying
.07% interest for a CD.
To put that in perspective, our $75,000 would only earn a measley $52 per year.
That is $52 per year vs $11,710 per year!
Of course, CDs are easier to manage. They don’t stop up the toilet or lock
themselves out at 2 AM. But we are paying $5,250 per year for a property manager.
That way we don’t have to deal with any tenant issues directly.

SCENARIO #2

Another option when buying this type of property would be to live in one of the units,
and rent out the rest. If you take this option, you can qualify for a FHA insured loan.
FHA loans only require a 3.5% down payment. In this case, that would come to $13,125.
Of course, the property’s annual income, and cash flow, would drop because you are
living in one of the units. But you would be living rent free. So saving $1,000 per
month on rent has the same impact on your finances as having $1,000 monthly cash flow.
This is the ideal situation for a 1st time investor. Let the tenants pay off your
mortgage and help you build equity over time.

Well that is enough number crunching for now.
I hope you found this information useful.
If you are thinking about buying or selling an investment property in Bronzeville,
please send me a note: mark@markkillion.com

Bronzeville

Available Bronzeville Investment Properties

Until the next time,

Mark Killion
Kale Realty
542 W. Roosevelt Rd
Chicago, IL 60607

Send me a note!

Visit me online: www.773property.com

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SINGLE FAMILY HOMES:

Bronzeville Home

There are currently 54 Single Family Homes on the market in Bronzeville Chicago.
The median asking price is $358,000.
The asking price ranges from $50,000 to $599,000.
Out of these 54 properties, 31 are already under contract.
“Under contract” means that the owner has already accepted a written offer.
The median asking price of the properties under contract is $389,900.

To view available listings for Single Family Homes in Bronzeville, click here.

CONDOS:

Bronzeville Condo

There are currently 152 condos on the market in Bronzeville Chicago.
The median asking price is $100,000.
The asking price ranges from $24,900 to $495,000.
Out of these 152 properties, 31 are already under contract.
The median asking price of the properties under contract is also $100,000.

To view available listings for condos in Bronzeville, click here.

TWO TO FOUR UNITS:

Bronzeville 2 To 4 Unit

There are currently 30 “Two to Four Unit” properties on the market in Bronzeville Chicago.
The median asking price is $249,900.
The asking price ranges from $99,000 to $575,000.
Out of these 30 properties, 12 are already under contract.
The median asking price of the properties under contract is also $194,000.

To view available listings for “Two to Four Unit” properties in Bronzeville, click here.

MULTI-FAMILY (5+ Units):

Bronzeville Multi-Family

There are currently 8 “Multi-Family (5+ Unit)” properties on the market
in Bronzeville Chicago.
The median asking price is $770,000.
The asking price ranges from $250,000 to $1,899,999.
Out of these 8 properties, 2 are already under contract.
The median asking price of the properties under contract is also $250,000.

To view available listings for “Multi-Family (5+ Unit)” properties in Bronzeville, click here.

VACANT LAND:

There are currently 35 Vacant Lots on the market in Bronzeville Chicago.
The median asking price is $65,000.
The asking price ranges from $15,000 to $1,475,000.
Out of these 35 properties, 5 are already under contract.
The median asking price of the properties under contract is also $45,900.
To view available listings for Vacant Land in Bronzeville, click here.

RENTALS:

Bronzeville Rental

There are currently 44 Rentals on the market in Bronzeville Chicago.
The median asking price for a rental is $1,450.
The asking price ranges from $675 to $3,500.
Out of these 44 Rentals, 7 are already under contract.
The median asking price of the rentals under contract is also $1,150.

To view available listings for Bronzeville rentals, click here.

Until the next time,

Mark Killion
Kale Realty
542 W. Roosevelt Rd
Chicago, IL 60607

Send me a note!

Visit me online: www.773property.com

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Bronzeville Real Estate Sales Analysis

Until the next time,

Mark Killion
Kale Realty
542 W. Roosevelt Rd
Chicago, IL 60607

Send me a note!

Visit me online: www.773property.com

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Bronzeville Rent Analysis – Chicago

Let’s take a quick look at rent prices in Chicago’s Bronzeville neighborhood.
This analysis is based on the 12 month period ending NOV-21-2013.
The picture above shows us the distribution of rent prices in Bronzeville.

The biggest slice of the pie represents the price range of $1,400 to $1,599.
The 2nd largest slice covers the price range of $1,200 to $1,399.
Together, they account for 50% of all rental transactions. So, half of the rentals
in Bronzeville are between $1,200 and $1,599.

A total of 206 units were rented during the last 12 months. So an average of 17
units are rented each month in the Bronzeville neighborhood. Here are the median
rents based on bedroom and bathroom counts:

=====================================
1 bed/1 bath: $837
2 bed/1 bath: $972
2 bed/2 bath: $1,254
3 bed/1 bath: $1,104
3 bed/2 bath: $1,533
3 bed/3 bath: $1,955
4 bed/1 bath: $1,225
4 bed/2 bath: $1,514
4 bed/3 bath: $1,997
========================================

Out of curiosity, I also wanted to compare the average rent for a 3bed/2bath
to the previous year’s amount. This way we can tell if rent prices are rising or
if they are falling.

During the previous 12 month period, a 3bed/2bath rented for $1,483 on average.
So the rent amount has increased by 3.4 % versus the previous year.

Well that’s all for now. I hope you found this information useful. If you are a tenant
looking for a Bronzeville rental, or if you are a landlord looking to rent out your
property, please contact me here.

In closing, I will leave you with a nice picture of a Bronzeville Mural.
This outdoor painting is near 40th and King Drive.

Bronzeville Mural

Until the next time,

Mark Killion
Kale Realty
542 W. Roosevelt Rd
Chicago, IL 60607

Send me a note!

Visit me online: www.773property.com

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2013 YTD Median Selling Prices (Single Family Homes)

Until the next time,

Mark Killion
Kale Realty
542 W. Roosevelt Rd.
Chicago, IL 60607
24 Hour Voice Mail: 312-242-1822
Send me a note!

Visit me online: www.773property.com

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Hello to all my blog readers out there. Today I want to
take a look at investing in condos. This is an interesting
niche for investors. There is an interesting dynamic happening in some Chicago neighborhoods.

Condo prices are relatively low and rental prices are relatively high.

This creates an excellent opportunity for investors.
Today I will look at the Bronzeville neighborhood in detail.
Bronzeville is one of those neighborhoods that has great
investment potential because of this very dynamic.

I have helped investors purchase condos in this neighborhood.
I have also helped many tenants rent condos in this neighborhood. So the next logical step for my business is to provide a complete solution for investors. I will help with the purchase of a condo and provide assistance all the way through finding a qualified tenant to move in. This is a turn-key, A to Z, solution.

So today we will look at two case studies.
We will also answer an interesting question:

Which is more profitable: a 2 bedroom condo or a 3 bedroom condo?
The answer may surprise you.

CASE STUDY 1

A three bedroom two bath condo was recently purchased in Bronzeville near King Drive and Oakwood. It is 1,475 square feet. It has hardwood floors, a fireplace, and it comes with a parking space.

It was purchased for $67,000 and it was in move-in condition. The property was purchased by a cash buyer.
This is a typical purchase price for this type of
condo.

Analysis:

The median rent for an updated 3bed/2bath condo in Bronzeville
is about $1,500 per month. If your unit is in great condition
like our subject property, I can get it rented in about 30 days.
You should have low turnover because Bronzeville is in demand by renters.

At $1,500 per month, the gross scheduled income is $18,000 per year. Next, we will look at expenses so that we can figure out our Net Operating Income (NOI).

Expenses:

Taxes: $3,666
Assessments: $1,800
Water: $600
Insurance: $1,000
Vacancy: $900
Repairs: $900
Prop Mgmt: $1,440
———————–

Our expenses total $10,306.
This gives us a Net Operating Income of $7,694.
Here are our key metrics for this investment:

Net Operating Income: $7,694
Cap Rate: 11.5%
Years to Break even: 8.71
Monthly Cash Flow: $641.17
NOI/square foot: $5.22
Price per square foot: $45.42

So, we see that this is a pretty good investment. Our
capitalization rate (cap rate) is 11.5%.
For Chicago investments, most investors are looking for
cap rates between 10% and 12%. A cap rate in this range
is considered a good one. Since there is no loan involved,
your cap rate in this case will equal your return on investment.
This investment will pay for itself in just under 9 years.
You may realize additional gains if the home values appreciate
during this time period.

==============================================================
Now let’s look at our 2nd case study which is a 2 bed/2 bath condo in the same neighborhood.

CASE STUDY 2

A 2bed/2bath condo was recently purchased near 48th and Vincennes.
It is a 950 square foot condo. It was purchased for $42,000.
This one was also purchased by a cash buyer.

This was rented about a month later for $1,250 per month.
The gross scheduled income is $15,000 per year. Next, we will look at expenses so that we can figure out
our Net Operating Income (NOI).

Expenses:

Taxes: $2,028
Assessments: $1,5480
Water: $400
Insurance: $1,000
Vacancy: $750
Repairs: $750
Prop Mgmt: $1,200
———————–

Our expenses total $7,676.
This gives us a Net Operating Income of $7,324.

————————————————————-
Side bar:

At this point in my analysis, I thought to myself
“Wow Mark! what a stunning revelation”

A two bedroom condo yielded a NOI of $7,324 which is only $370 less
than what a 3 bedroom condo yielded.
But, the purchase price was $25,000 less!
So all you Bronzeville Chicago condo investors out there, I just revealed something quite valuable. You will get a better return on your investment by purchasing two bedroom condos instead of three bedroom condos.

But, back to my analysis.
————————————————————–
Here are our key metrics for our 2bed/2bath investment condo:

Net Operating Income: $7,324
Cap Rate: 17.4%
Years to Break even: 5.73
Monthly Cash Flow: $610.33
NOI/square foot: $7.71
Price per square foot: $44.21

Look at the yields for our 2bed/2bath investment condo.
At a cap rate of 17.4%, this is an outstanding investment.
This condo will pay for itself in less than 6 years.

CONCLUSION:

Investing in condo rentals can be very profitable.
Our 3bed/2bath purchase gave us a respectable yield of 11.5%.
Our 2bed/2bath purchase knocked it out the park with a yield of 17.4%.
Imagine if you added 5 of these condos to your portfolio.
You would have a net monthly cash flow of about $3,000
(assuming you paid cash). Not bad at all!

Remember, I can offer you a turn key solution, from purchase to rental to positive cash flow!

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