24% Cap Rate Brick 3-Unit in Chicago Heights

[Fernando Angelucci]

Hello BP!

Today we have available for immediate assignment a brick and frame 3-unit at a 24.2% cap rate for $107,000.

Address: 320 W. 16th St., Chicago Heights, IL 60411

Size: 1,592 sq. ft.

Units: 3

Unit Mix: Unit 1- 4 bed, 2.1 bath | Unit 2- 1 bed, 1 bath | Unit 3- 1 bed, 1 bath

Details: Needs no rehab and has passed all city and rental/Section 8 inspections. Only a few blocks away from the Barack Obama School of Leadership and Technology. 4 bed / 2.1 bath unit is currently rented to a Section 8 tenant for $1,450 a month. The other two units are 1 bedroom, 1 bath with one vacant and the occupied unit rented to a market tenant at $675 a month. We would recommend renting the vacant 1 bedroom to a Section 8 tenant as there is a shortage of Section 8 housing and one bedrooms in 60411 can command $890 a month from voucher tenants. Otherwise, the unit can be rented out to a market tenant for $675 since the owner has interested tenants waiting. Tenants currently pay all utilities except for water and common area electric. Tenants have their own individual trash cans with the city.

CURRENT FINANCIALS

Gross Operating Income (with vacant 1 bedroom unit rented to market): $33,600

Annual Taxes: $4,666.71

Actual Annual Insurance: $675.31 (Country Financial)

Monthly Owner Paid Utilities: $160

Total Annual Expenses: $7,262.02

Net Operating Income: $26,338 = 24.6% Cap @ $107k

PROFORMA FINANCIALS

Rent vacant 1 bed unit to Section 8: $28,918 NOI = 27% Cap @ $107k

Rent both 1 bed units to Section 8 when lease expires: $31,498 NOI = 29.4% Cap @ $107k

Here are the documents to support the reported expenses: https://www.dropbox.com/sh/8t7c6233bozbc7i/AAAOi4uT7a-VLHI56IpP_KLja?dl=0

PHOTOS: https://www.dropbox.com/sh/o4mm09xue7wk43f/AAAMCpYJ0L7dF43bvDiQYZfga?dl=0

We will set up a showing for all interested parties unless the property sells sight unseen. The deal goes to the first person to sign the assignment of contract and remit the assignment fee. Please let us know if you have any questions or interest.

PLEASE CALL OR TEXT FOR FASTEST RESPONSE