3856 w. Diversey Ave:
A Value Add Investment Project
- – Purchase Price: $565,000, 11.4% Discount to Value
- – Appraised As Is Value: $630,000
- – Unit Mix: 8 units, 4 2bed/1bath , 1 3bed/1bath, 1 1bed/1bath, 2 retail spaces
- – Zoning: Zoned RS3
- – Appraised Stabilized Value: $1,050,000
- – Projected Project/Professional Costs: $200,000
- – Potential Equity Upon Stabilization: $285,000
- – Projected Stabilized Cap Rate: 9.6%
- – Rehab all 6 residential units to achieve high-end market rents for West Logan Square.
- – Clear all building violations.
- – Pursue zoning change and variance to allow two commercial spaces to become residential units.
- – Remodel commercial apartments when zoning is completed.
- – Refinance to 5 year fixed with 25 year amortization, pull out equity.
- – Hold property long-term and benefit from coming gentrification in West Logan Square.
- – Use Equity to buy another project with an identical strategy.
This is an ongoing project and updates will be posted periodically. Eventually we’ll have “after” photos to share along with the financial results. We’d love to help you find a project like this. If you’re interested, please contact Mark Hafeli at 773-809-3569.