High Cap Rate Chicago – 7 property package

Calling all investors!
This package is a money maker!
7 properties, 9 units total.
The properties are rented to Section 8 voucher holders.
Guaranteed Income!
Asking $270K with annual NET income of $56K!
Contact me for more info!

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

Send me a note!

Visit me online: www.773property.com

EQUAL HOUSING OPPORTUNITY

I broke it down by neighborhood. Then I compared that to the average
selling price for a 3 bedroom Single Family Home in Chicago, also broken
down by neighborhood.

Comparing these two results allows us to compare Revenue to Purchase price.
This is very useful information, because it lets us know which neighborhoods
offer the higher returns for investors.

Here are some interesting metrics:

Median Rent for a 3 bedroom in Chicago: $1,442
Median Selling price for a 3 bedroom home: $145,612
Average Gross Rent Multiplier: 8.14

Here is a snapshot of this report:

Single Family Rental Analysis – Chicago

We can also use the above information to estimate a property value
for a Single Family Rental in a particular neighborhood.

For example, let say that we have a single family home that is
renting for $1,000 in the Chicago Lawn neighborhood
(Neighborhood ID = 8066).

According to our analysis, the average Gross Rent Multiplier (GRM)
in Chicago Lawn is 4.40. The annual gross rent for this
property is 12 x 1,000 = 12,000. Then we multiply the annual
gross rent times our GRM of 4.4 and get $52,800.

So the value of $52,800 would be our derived value based strictly
on income. We can also look at our average comp value, which is
$57,523 in the Chicago Lawn neighborhood.

I would then average our income value and our comp value.
This would give us a value of $55,161.
Well, that’s all for now. I hope you found this information useful.

If you would like the full report, please send me a note:
mark@markkillion.com

p.s. I have packages of Single Family Rental Homes For Sale in Chicago!
Right now, I have a package of 5 homes in the Morgan Park neighborhood.
Gross Income = $72,000 Asking Price = $450,000

*** Guaranteed Returns during first two years = 12% Cap Rate ***
For more info, please send me a note: mark@markkillion.com

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

EQUAL HOUSING OPPORTUNITY

House Made of Money

Here is a great article that I wanted to share with you.
It talks about the opportunity for investors to realize
high cap rates with single family home rentals:

Chicago Tribune Article

Also, I know of a portfolio of 8 single family homes
available on the south side. They are all rented out
and they are grossing $15K each. The taxes are low,
and at an asking price of $520K, you are looking at cap
rates between 13% and 15%!

Also, if you are just looking to pick up one or two properties
to start your portfolio, I can assist you with that as well.
You can get a brick single family home, with 3 bedrooms,
already rented out for $1,250 per month.
Those will run about $90K per house. And, these are turn-key
investments!

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

EQUAL HOUSING OPPORTUNITY

Chicago Single Family Home Rental

I recently read that Chicago Cap Rates for Single Family
Homes average about 7%.
This may be true when you look at the city as a whole.
But cap rates vary greatly by neighborhood.
Cap rates can be 5% downtown and 15% in some areas on the South Side.
Cap rates in many parts of the city are much higher than the
quoted 7% average.
In areas that are experiencing appreciation, the cap rates will be lower.
In areas where appreciation is flat, but rental demand is high,
the cap rates are 10+.

For example, a single family home was purchased in the South
Shore neighborhood, on 72nd and Luella, in 2011 for $60,000.
Let’s estimate that $25,000 was spent to rehab it.
It is now renting for $1,650 per month. Your Gross annual income
is $19,800.You figure that you are spending about $7,500 per year
on taxes, water, insurance, and property management.
That gives you a Net Income of $12,300 per year.
When we divide $12,300 by $85,000, we arrive at an attractive
cap rate of 14.5%. That is double the average stated cap rate for Chicago.

If any investors out there are interested in learning more about investing
on the South side of Chicago, please let me know.

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

EQUAL HOUSING OPPORTUNITY