#Realty 2252 e. 84th st Chicago, IL 2014 4 Unit case study
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#REALTY Case Study: 2252 East 84 th St. Chicago, IL 60617 Mission: Use cash to purchase REO property under market value, renovate, secure Section 8 renters, create cashflow, and sell to investors at a profit. Building Description: 2252 E. 84 th St is an all brick 4 unit multi-family apartment building located on Chicago's South side. It has a total of 10 Bedrooms and 4 Full Baths and all brick 3 car garage. Building Acquisition: At it's 5 year peak the property was listed at $425,000 in February 2010. The building was delisted in August 2010 and re-listed multiple times from 2011-2012 finally reaching it's lowest listed price of $140,000 before being delisted in September 2012. 2252 E 84 th St was acquired by #Realty in 2013 for $40,000 as an REO. Building Rehabilitation and Rental: Over the course of 12 months the property was completely rehabilitated at a cost of approximately $100,000. After much learning, the project could definitely have been done in 6-8 months for $60,000. The following listing describes the work done: Immaculate Professional Rehab Top To Bottom! New Kitchen Cabs, Counter tops, Sink, Faucets, GFI's & Ceramic Tile Back Splash! New Stainless Appliances, New Bathrooms, (Vanities, Lights, Faucets, Mirrors, Fixtures) New Light Fixtures & Ceiling Fans! Refinished floors, new trim and paint! New Exterior and Interior Doors with new handles! New mechanical, tuck-pointing repairs & so much more! Upon completing the renovation, 3 of the four units were rented to Section 8 tenants for $1,100 per mo. The 4 th unit was not rented because originally it was going to be sold to an owner occupied buyer who would purchase, occupy and manage the property. The 4 th unit will also rent for $1,100 per month. Simple Financials: Property cost: $40,000 | Rehab cost $100,000 | Other $15,000 | Total cost: 165,000 | Sale price: $271,000 Property generates $4,400 per month. Taxes are $253 per month. ($275,000 5% mortgage would be $1,600 per month). Buyer gets $2,500 per month in positive cashflow. If we held the property instead of selling it; we would recapture total cost of $160,000 in 3.03 years and make $40,967 annually paid on the 1 st of every month by Section 8.
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Transcript of #Realty 2252 e. 84th st Chicago, IL 2014 4 Unit case study
#REALTY Case Study: 2252 East 84th St. Chicago, IL 60617
Mission:
Use cash to purchase REO property under market value, renovate, secure Section 8 renters, create cashflow, and sell to investors at a profit.
Building Description:
2252 E. 84th St is an all brick 4 unit multi-family apartment building located on Chicago's South side. It has a total of 10 Bedrooms and 4 Full Baths and all brick 3 car garage.
Building Acquisition:
At it's 5 year peak the property was listed at $425,000 in February 2010. The building was delisted in August 2010 and re-listed multiple times from 2011-2012 finally reaching it's lowest listed price of $140,000 before being delisted in September 2012.
2252 E 84th St was acquired by #Realty in 2013 for $40,000 as an REO.
Building Rehabilitation and Rental:
Over the course of 12 months the property was completely rehabilitated at a cost of approximately $100,000. After much learning, the project could definitely have been done in 6-8 months for $60,000. The following listing describes the work done:
Immaculate Professional Rehab Top To Bottom! New Kitchen Cabs, Counter tops, Sink, Faucets, GFI's & Ceramic Tile Back Splash! New Stainless Appliances, New Bathrooms, (Vanities, Lights, Faucets, Mirrors, Fixtures) New Light Fixtures & Ceiling Fans! Refinished floors, new trim and paint! New Exterior and Interior Doors with new handles! New mechanical, tuck-pointing repairs & so much more!
Upon completing the renovation, 3 of the four units were rented to Section 8 tenants for $1,100 per mo. The 4th unit was not rented because originally it was going to be sold to an owner occupied buyer who would purchase, occupy and manage the property. The 4th unit will also rent for $1,100 per month.
Simple Financials:
Property cost: $40,000 | Rehab cost $100,000 | Other $15,000 | Total cost: 165,000 | Sale price: $271,000
Property generates $4,400 per month. Taxes are $253 per month. ($275,000 5% mortgage would be $1,600 per month). Buyer gets $2,500 per month in positive cashflow.
If we held the property instead of selling it; we would recapture total cost of $160,000 in 3.03 years and make $40,967 annually paid on the 1st of every month by Section 8.
BEFORE
