LIST PRICE
LAST SALE DATE
LAST SALE PRICE
Delta
60 Day Rehab
http://www.redfin.com/IL/Chicago/6935-S-Peoria-St-60621/home/13931234
255000
07/10/14
36500
218500
7 Mo Rehab
https://www.redfin.com/IL/Chicago/6809-S-May-St-60621/unit-1/home/13930931
220000
06/27/14
25000
195000
8 Mo Rehab
http://www.redfin.com/IL/Chicago/6039-S-Peoria-St-60621/home/13938712
285000
04/25/14
25000
260000
No Rehab
http://www.redfin.com/IL/Chicago/5719-S-Green-St-60621/home/13939598
25000
09/30/14
15000
10000
No Rehab
http://www.redfin.com/IL/Chicago/6849-S-Green-St-60621/home/13930918
24900
05/02/14
18500
6400
Chicago Example
Primary Inputs Value (30-Year Mortgage Scenario)
Purchase Price($) $35,000.00 Monthly Rent $2,009
Downpayment(%) 100.0% Annual Rent $24,108.00
Units(#) 2    
Monthly Rent($) $1,025 Value Per 2% Rule $100,450
Occupancy Rate 98% Value Difference (2% Rule) $65,450
    Annual NOI $12,300
30 Year Loan Rate(%) 6.50% ROI (Pre-Tax) Err:502
15 Year Loan Rate(%) 0.00% ROI (Post-Tax) Err:502
    CAP Rate (50% Rule) 35.1%
    CAP Rate (Assumed Expenses) 42.8%
Secondary Inputs Annual Expenses
Closing Costs(%) 6.0% Annual Property Taxes $3,220
Property Tax(%) 9.2% Annual Maintenance $1,977
Insurance(%) 3.8% Annual Insurance $1,330
Maintenance(%) 8.2% Property Upkeep/Other $200
Property Management(%) 10.0% Property Management $2,411
Improvements($) $35,000.00 Total: $9,138
Closing Costs($) $2,100.00    
Inspections/Misc($) $600.00    
GC Combined
Primary Inputs Value (30-Year Mortgage Scenario)
Purchase Price($) $570,000.00 Monthly Rent $9,392
Downpayment(%) 20.0% Annual Rent $112,699.41
Units(#) 8 Value Per 2% Rule $469,581
Monthly Rent($) 1,210 Value Difference (2% Rule) $(100,419)
Occupancy Rate 97% Annual NOI $75,353
    ROI (Pre-Tax) Err:502
30 Year Loan Rate(%) 4.25% ROI (Post-Tax) Err:502
15 Year Loan Rate(%) 3.65% CAP Rate (50% Rule) 13.2%
    CAP Rate (Assumed Expenses) 12.6%
    Cash on Cash 34.77%
Secondary Inputs Annual Expenses
Closing Costs(%) 2.3% Annual Property Taxes $10,371
Property Tax(%) 9.2% Annual Maintenance $9,282
Insurance(%) 3.8% Annual Insurance $4,256
Maintenance(%) 8.2% Property Upkeep/Other $1,656
Property Management(%) 10.0% Property Management $11,270
Improvements($) $- Utilities $3,996
Closing Costs($) $12,880.00 Total: $40,832
Inspections/Misc($) $2,400.00