Cap Rates in Englewood Chicago
Hello to all of my blog readers out there!
I wanted to take a few minutes to examine
cap rates in Englewood Chicago. Historically,
Englewood has offered some of the highest cap
rates in the city.
Englewood is about 10 miles from Chicago's
downtown business district. Englewood landed
on many investors' radar when a Whole Foods
came to the area in 2017.
Since then, I have seen many multi-family
properties sold in the area and I have also
noticed cap rate compression.
Gone are the days of 20% cap rates in Englewood.
Now many deals are going for 10 to 13 cap rates.
Let's analyze some recently closed deals:
The cap rates in these examples were estimated
based on the Gross Income. I assumed that net
income would be 50% of gross income.
I then divided net income by the sold price to
derive the cap rate. I would say the above deals
are typical for the Englewood area.
We see the average cap rate is 11.65%.
Some of these properties were recently rehabbed,
so it is likely their expenses would come in less
than 50% of gross income. So in turn, the cap rate
may be a little higher. But I like to be conservative
when doing these types of analyses.
While we're at it, let's take a look at rental prices:
Now that you know the average rental prices, you
will be able to analyze future potential deals in
the neighborhood.
Well that's it for now, I hope you enjoyed this post.
If you plan to buy an Englewood property,
please let me know!
I would be happy to be your Buyer's Broker for a multi-family property.
I've been serving the Chicago area since 2007 and
I specialize in Chicago Investment properties!
Until the next time,
Mark Killion - Real Estate Broker
Kale Realty Chicago - 2447 N. Ashland Ave - Chicago, IL 60614
Cell: 773-354-6693 (Texts Preferred)
Equal Housing Opportunity
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