This analysis models a typical BRRRR project in Edgewater at the neighborhood median ARV of $495K. Real-world projects vary substantially based on property type, condition, and submarket dynamics.
Acquisition and rehab assumptions
| Acquisition price (85% of median) | $336K |
|---|---|
| Rehab budget (midpoint) | $110K |
| All-in cost | $446K |
| After-Repair Value (ARV) | $495K |
Monthly cash flow model
| Estimated monthly rent | $4K |
|---|---|
| Property tax (Cook County investor classification) | −$1K |
| Insurance | −$206 |
| Vacancy reserve (7%) | −$295 |
| Property management (8%) | −$337 |
| Maintenance reserve (6%) | −$252 |
| Net Operating Income (monthly) | $2K |
| DSCR refi at 75% LTV / 7.5% / 30yr | $371K loan, $3K P&I |
| Monthly cash flow after debt service | $-509 |
| Cash left in deal after refinance | $75K |
What this tells us about Edgewater
At the Edgewater median, a typical BRRRR project produces approximately $-509 per month in cash flow after a 75% LTV DSCR refinance. With approximately $75K remaining in the deal after refinance, this represents a -8% cash-on-cash return on the remaining capital — before appreciation.
Edgewater is one of the most reliable vintage condo BRRRR markets in the city. Andersonville commercial corridor anchors the western blocks. Lakefront access is the consistent value driver.
How this scales across Edgewater
Edgewater's housing stock includes vintage condo, courtyard walkup, 3-flat, mid-rise condo. Multi-unit properties (2-flat, 3-flat) typically produce 30–60% higher gross rent than single-family at similar ARVs but carry higher tax burdens and management overhead. Single-family rehabs often have stronger exit liquidity (owner-occupant buyers) but lower cash flow.
Sensitivity considerations
- Rent assumption: Modeled at ~0.85% of ARV. Actual rents in Edgewater range from 0.6–1.0% depending on property type and condition.
- Property tax: Modeled at 2.5% of ARV for Cook County investor classification. Successful tax appeal can reduce this 15–30%.
- Interest rate: DSCR refi rates currently range 7.5–9.5% depending on borrower profile and leverage. A 1% rate change moves monthly cash flow by approximately $100–200 on this deal size.
- Rehab budget: Modeled at midpoint of $55K–$165K. Common considerations on Edgewater housing stock (tuckpointing, window restoration) can push budgets higher.
Edgewater cash flow FAQ
Estimated monthly rent for a stabilized investment property in Edgewater at the $495K median ARV level is approximately $4K per month — a rough rule-of-thumb estimate at ~0.85% of ARV. Actual rents vary significantly by property type (vintage condo, courtyard walkup, 3-flat, mid-rise condo) and condition.
On these estimates, a typical BRRRR project at the Edgewater median ARV produces approximately $-509 per month in cash flow after debt service (at 75% LTV DSCR refi, 7.5% rate, 30-year amortization). Cash left in the deal after refinance: $75K. Individual deals vary substantially.
For a property in Edgewater valued at the median ARV of $495K, expect approximately $12K in annual property tax (Cook County investor-classification, before exemptions and appeals). Chicago city properties were reassessed in 2024 — many neighborhoods saw material assessment increases.
Edgewater typically supports a rent-to-price ratio in the 0.6%-0.9% range depending on property type and condition. Multi-unit properties (2-flat, 3-flat) generally produce higher ratios than single-family. The 1% rule rarely applies in Chicago neighborhoods — but BRRRR works at lower ratios when appreciation supports it.
This is a directional cash-flow model, not personalized financial advice. Rent estimates, tax rates, and refinance terms are illustrative. Validate every assumption with current market data and your own underwriting before committing capital.