Property
20 Unit Southwest Suburb Multifamily Property
808-816 2nd Ave. Joliet, IL 60433
$1,750,000
Pricing/Terms Explained
$87,500 Per Unit
** Buyer's Premium Waived
20
Beds
20
Baths
-
Sq. Ft.
1916
Yr. Built
100%
Occupancy
25
Spaces
3
Stories
Electric
Heat
Paid
Laundry
Street
View
Contract Copy
Buyer's Agreement
Property Summary
Type
Multifamily
In Place NOI
$147,000
Target CAP Rate
8%
Today's Market Value
$2,103,000
Target Purchase Price
$1,750,000
Units
20
Projected NOI
$198,000
Market CAP Rate
7%
Value w/Market Rents
$2,835,000
Cost Per Unit
$87,500
Investment Strategy
Purchase at target price with 20% down payment. Upon purchase raise rents to appropriate levels. 1 Bed market rents are $1,000 in the area. Current seller has been slow and inefficient on rental increases. Refinance and pull cash out based on higher value of the property.
About The Property
Huge value-add opportunity for a rarely available 20-unit courtyard style building in Joliet, IL. The property consists of (20) one-bedroom units in a quiet, tree-lined neighborhood. The property has some deferred maintenance with the mechanical room, windows and fascia needing some attention. The units are in good and rentable condition with 13 of the units being recently renovated. 13 Garage spaces exist that can be rented out for additional revenue. The property is available at an unprecedented low price with the opportunity to increase the current gross rental income from $198k to $250,000+ with some aesthetic improvements and increasing rents to market rate.
About The Neighborhood
Joliet is the county seat of Will County and the 3rd largest city in Illinois. The city maintains a diverse blue-collar work force with the local economy being propped up by 2 major casinos: Harrah’s and the Hollywood Casino. Rental prices have been steadily increasing and vacancies have been reaching historic lows with the limited existing rental inventory available. Will County’s relatively lenient tenant laws and lower property taxes have made it a hotbed for investors in the past few years with properties commanding cap rates hovering around the 7% mark.
Due Diligence
Documents
Citipoint conducts a thorough document review on every property. For access to more documents such as leases, inspection reports, warranties, etc please fill out our Document Request Form.
Rents, expirations, security deposits, balances and more.
Utility expense, services, insurance, taxes, and more.
Who pays what - Landlord Vs. Tenant
Comparable multi family properties that have sold in the area.
Comparable multi family units that have been rented in the area.
Market report showing trends and insights.
Property
Financials
Purchase Price of Property
Property Current
This column shows the current financial state of the subject property. These inputs are factual and they are based on verified information.
Year 2 Pro Forma
This column is based on a stabilized condition of the subject property. These inputs assume proper property performance by using our investment suggestions (proper management, bringing rents up to market rate, vacancy absorption, etc).
Debt Service
This column allows the user to add custom financing scenarios.
Property
Performance
View the return metrics based on various inputs.
"Annual Net Income", "Monthly Cash Flow", "Cash on Cash Return", "Equity Value", and "Equity Multiple" are based off of the "Year 2 Pro Forma" column inputs.
Key
Metrics
Year by Year Property Data
Property Value
Remaining Loan Balance
LTV Ratio
Debt Service Coverage Ratio
Cumulative Net Cash Flow
Total Equity (Includes Net Cash Flows)
ROI
Annualized ROI
Equity Multiple
Learn how Citipoint can scale your real estate business.
Deal Flow - Learn how we source properties.
Management - Competitive rates and unparalleled service.
Value Add - Assistance with Lease Up, Construction, and Accelerated Appreciation.
Financing - Direct access to preferred lenders for Acquisition and Refinance options.
