$1,800,000
Investment Summary
- Monthly Cash Flow
- -$10,244
- Cap Rate
- -1.2%
- Cash-on-Cash Return
- -29.7%
- Debt Coverage Ratio
- -0.20
- Internal Rate of Return (5 years)
- -24.6%
Cash Flow
Net Operating Income (NOI) minus mortgage payments.
Calculation:
NOI - Mortgage Payments
Cap Rate (Market Value)
Capitalization Rate is a rate of return that compares the yearly Net Operating Income (NOI) to the market value.
Calculation:
NOI / Market Value
Cash-on-Cash Return (CoC)
Annual Cash Flow / Cash Invested
Calculation:
Annual cash flow divided by initial cash invested.
Debt Coverage Ratio (DCR)
Net Operating Income (NOI) divided by total debt payments.
Calculation:
NOI / Total Debt Payments
Internal Rate of Return (IRR)
A metric for assessing profitability over time. IRR is the discount rate at which the net present value (NPV) of all future cash flows (positive and negative) from an investment equals zero — including both periodic cash flow (such as rent) and a projected sale at the end of the holding period. It represents the expected annualized return, accounting for income, expenses, and the recovery of capital through a future sale.
Property Description
Once home to great American author Ernest Hemingway and walking distance to Chicago's amazing lakefront, 1239 N. Dearborn St. is a 7 bed/6.5 bath, historic brownstone in the heart of the Gold Coast with three decks, a patio, a coach house and a two-car garage. Originally built in 1898 and located on a 3,300-square-foot lot that sits on a lovely, tree-lined stretch of Dearborn, amid some of Chicago's finest homes, the literary history here is enchanting: After their honeymoon in 1921, Hemingway and his wife Hadley lived in an apartment on the fourth floor before moving to Paris, where he wrote "The Sun Also Rises," "A Farewell to Arms," and his memoir, "A Moveable Feast." Most recently situated as a multifamily divided up into rentals, the entire brownstone plus coach house is now for sale, presenting endless possibilities as an investment property including the option to renovate to transform its beautiful bones into a multilevel, single-family home. The brick and limestone exterior has been maintained to uphold its stately, turn-of-the-century character, including tall arched windows and decorative stonework. Inside, the main level flaunts high ceilings, original hardwood floors and millwork details across a foyer, a light-filled formal living room, a dining room with fireplace, a back-of-the-house kitchen, and a bonus space that links to two decks (9'4" x 15'2" and 12'7" x 7'4"). Upstairs, the second level is perfect for a deluxe primary suite and currently features three bedrooms (two that are ensuite, one with a balcony and another with a walk-in closet), two full baths, and upstairs laundry. The top level reveals three additional bedrooms, two more full baths, and a bonus space that's ideal for a den or office. Downstairs, the ground level features two studio spaces (one with a kitchenette) that connect to a large outdoor patio (23'5" x 24'10"). Plus, there's a basement level with more bonus space, yet another full bath, a laundry room, utilities, and abundant storage. Situated above the detached garage, the bi-level coach house features a foyer, a living room, a kitchen, three bedrooms and a full bath, and has the potential to be a fabulous standalone apartment for in-laws, extended-stay guests or an au pair. With a spectacular location that's steps from the 3 Arts Club and Green City Market's outdoor farmers market, not to mention Chicago's most prestigious schools and world-class dining and shopping along the Mag Mile and Oak Street, 1239 N. Dearborn St. is a truly one-of-a-kind property with untapped potential and incredible value built right in.
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Location
Property Details
Parking
- Description: Attached Garage
- Details: Garage, On Site, Detached
- Garage Spaces: 2
- Spaces Total: 2
Bedroom Information
- # of Bedrooms: 8
Bathroom Information
- # of Baths (Full): 1
- # of Baths (Partial): 0
- # of Baths (Total): 7.0
Interior Features
- # of Rooms: 20
- # of Stories: 1
- Basement: Yes
- Basement Description: Unfinished, Partial
Exterior Features
- Exterior Walls Materials: Masonry
Land Information
- Land Use: Residential Income
- Land Use Subtype: Apartments (general)
Lot Information
- Parcel ID: 1704224009
- Lot Size: 0 sqft
Property Information
- Property Type: Multi Family
- Year Built: 1897
Tax Information
- Annual Tax: $46,381
Utilities
- Heating: Natural Gas
Location
- County: Cook
Listing Details
Investment Summary
- Monthly Cash Flow
- -$10,244
- Cap Rate
- -1.2%
- Cash-on-Cash Return
- -29.7%
- Debt Coverage Ratio
- -0.20
- Internal Rate of Return (5 years)
- -24.6%
Cash Flow
Net Operating Income (NOI) minus mortgage payments.
Calculation:
NOI - Mortgage Payments
Cap Rate (Market Value)
Capitalization Rate is a rate of return that compares the yearly Net Operating Income (NOI) to the market value.
Calculation:
NOI / Market Value
Cash-on-Cash Return (CoC)
Annual Cash Flow / Cash Invested
Calculation:
Annual cash flow divided by initial cash invested.
Debt Coverage Ratio (DCR)
Net Operating Income (NOI) divided by total debt payments.
Calculation:
NOI / Total Debt Payments
Internal Rate of Return (IRR)
A metric for assessing profitability over time. IRR is the discount rate at which the net present value (NPV) of all future cash flows (positive and negative) from an investment equals zero — including both periodic cash flow (such as rent) and a projected sale at the end of the holding period. It represents the expected annualized return, accounting for income, expenses, and the recovery of capital through a future sale.
Purchase Details
Purchase PriceThe price paid for the property. Purchase price:
| $1,800,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$1,440,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $360,000 |
Closing CostsFees and expenses associated with purchasing a property, typically ranging from 2% to 5% of the home’s purchase price, paid at the end of a home purchase to cover services like lending, title transfer, and taxes. Closing costs:
| $54,000 |
Rehab CostsCosts incurred to repair or improve the property, including: roof, flooring, exterior siding, kitchen, exterior paint, bathrooms, etc. Rehab costs:
| $0 |
Initial Cash InvestedThe total initial cash invested in the property. Calculation:Down payment + Buying costs + Rehab costs Initial cash invested:
| $414,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 0 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| n/a |
Monthly Rent Per Square FootMonthly rent divided by the number of square feet. This ratio helps investors compare rental income efficiency across properties, markets, and unit sizes Calculation:Monthly Rent / Square Feet Monthly rent per square foot:
| n/a |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $1,440,000 |
|---|---|
Loan to Value Ratio (LTV)Loan amount divided by the market value of the property. Calculation:Loan Amount / Market Value
Loan to value ratio:
| 80.0% |
Loan TypeThe type of loan (e.g., fixed, adjustable).
Loan type:
| Amortizing |
TermThe loan repayment period in years.
Term:
| 30 years |
Interest RateThe percentage a lender charges on the borrowed amount of a loan, determining the cost of borrowing money.
Interest rate:
| 5.875% |
Principal & Interest (PI)The principal is the portion of the loan payment that reduces the loan balance. The interest is the lender's charge for borrowing money. Calculation:(P * r * (1 + r) ** n) / ((1 + r) ** n - 1) Where:
P = Loan amount (principal)
Principal & interest:
| $8,518 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $3,865 |
InsuranceThe costs for insurance coverage to protect against financial losses due to risks like fire, natural disasters, theft, liability, or tenant-related damages. Calculation:Assumes 7% of gross rental income, unless insurance rates are specified.
Insurance:
| $217 |
Private Mortgage Insurance (PMI)A fee that borrowers pay when they take out a conventional loan with a loan-to-value (LTV) ratio above 80%.
Private mortgage insurance (PMI):
| $0 |
Monthly PaymentThe fixed amount a borrower pays each month to repay a loan. It typically includes principal and interest (P&I) and may also cover property taxes, insurance, HOA fees, and PMI if escrowed. Monthly payment:
| $12,600 |
Operating Income
| % Rent | Monthly | Yearly | |
|---|---|---|---|
Gross RentThe total rental income received from tenants before deducting any expenses. Includes base rent, late fees, pet fees, parking fees, and other recurring charges.
Gross rent:
| $3,100 | $37,200 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$186 | -$2,232 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $2,914 | $34,968 |
Operating Expenses
| % Rent | Monthly | Yearly | |
|---|---|---|---|
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services. | 125% | -$3,865 | -$46,382 |
InsuranceThe costs for insurance coverage to protect against financial losses due to risks like fire, natural disasters, theft, liability, or tenant-related damages. Calculation:Assumes 7% of gross rental income, unless insurance rates are specified. | 7% | -$217 | -$2,604 |
Property ManagementThe costs associated with hiring a property manager to handle the day-to-day operations of a rental property. Includes management fees, leasing fes, eviction fees, etc. Calculation:Assumes 8% of gross rental income. | 8% | -$248 | -$2,976 |
Repairs & MaintenanceOngoing costs for routine upkeep and minor fixes needed to keep a property in good working condition. Calculation:Assumes 5% of gross rental income. Varies by property age and condition. | 5% | -$155 | -$1,860 |
Capital ExpensesLarge, infrequent costs for major improvements or replacements, like a new roof, HVAC system, or appliances. Calculation:Assumes 5% of gross rental income. Varies by property age. | 5% | -$155 | -$1,860 |
HOA FeesRegular dues paid to a Homeowners Association for community maintenance, amenities, and management. Similar fees include: Condo Association Fees, Co-op Maintenance Fees, etc. | n/a | n/a | n/a |
Operating ExpensesRecurring costs required to maintain and manage a rental property, including property taxes, insurance, maintenance, repairs, utilities (if paid by the owner), property management fees, and other day-to-day expenses. Calculation:Insurance + Property Taxes + Property Management + Repairs & Maintenance + Capital Expenditures + HOA Fees | 150% | -$4,640 | -$55,682 |
Cash Flow
| Monthly | Yearly | |
|---|---|---|
Net Operating Income (NOI)The income generated from a property after deducting all operating expenses but before deducting mortgage payments, taxes, and capital expenditures. Calculation:Gross Operating Income - Operating Expenses
Net operating income:
| -$1,726 | -$20,712 |
Mortgage PaymentThe fixed amount a borrower pays each month to repay a loan. It typically includes principal and interest (P&I) and may also cover property taxes, insurance, HOA fees, and PMI if escrowed. | -$8,518 | -$102,216 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $10,244 | $122,928 |