Property Overview
- Total Units: 7
- 6241 Hohman (4 Units):
- Studio: $850
- 1 Bedroom Apartment: $950
- 1 Bedroom Apartment: $800
- 1 Bedroom Apartment: $925
- Monthly Total: $3,525
- 6239 Hohman (3 Units):
- 3 Bedroom Apartment: $2,200
- 1 Bedroom Basement Apartment: $950
- 2 Bedroom Apartment: $1,300
- Monthly Total: $4,425
- 6241 Hohman (4 Units):
- Total Monthly Income: $7,950
- Total Annual Income: $95,400
Annual Expenses
- Water: $2,400
- Garbage Disposal/Management: $1,500
- Property Taxes: $6,759.70
- Property Insurance: $3,792.00
- Utilities (NIPSCO): $3,728
- Laundry Income Potential:
- Current 1 Washer/1 Dryer generates $800 annually at $0.75 per load.
- Increasing to $1.50 per load could generate $1,600 annually.
- Adding a second washer/dryer set could further increase revenue.
- Total Annual Expenses: $18,179.70
Net Operating Income (NOI)
Annual Income: $95,400
Less Expenses: $18,179.70
Net Operating Income: $77,220.30
Investment Metrics
- Purchase Price: $600,000
- Cap Rate:
- NOI ÷ Purchase Price: $77,220.30 ÷ $600,000 = 12.87%
- Cash-on-Cash Return:
- Dependent on down payment and financing terms.
- Potential Upside:
- Increase laundry fees to $1.50/load and add additional machines to boost income.
- Potential rent increases at lease renewals.
Investment Highlights
- Strong Cash Flow: NOI of $77,220.30 annually, providing a cap rate of 12.87%.
- High Income Potential: Gross monthly rent of $7,950 with room for additional revenue streams.
- Upside Opportunities:
- Implement higher laundry rates and add a second set of machines for more revenue.
- Adjust rents over time for market alignment.
- Strategic Location: Hammond, IN, is a sought-after rental market close to local amenities, transportation, and employment centers.
Why This Property?
This 7-unit property offers immediate cash flow, excellent returns, and multiple opportunities to maximize income. With a competitive 12.87% cap rate and located in a stable rental market, it’s a solid investment for any real estate portfolio.