Acquisition assumptions for Harvey
| Acquisition (85% of median) | $81K |
|---|---|
| Rehab budget (midpoint) | $100K |
| All-in cost | $181K |
| ARV | $165K |
Monthly cash flow model
| Monthly rent estimate | $1K |
|---|---|
| Property tax (Cook County investor) | −$385 |
| Insurance | −$69 |
| Vacancy reserve (7%) | −$90 |
| Property management (8%) | −$103 |
| Maintenance reserve (6%) | −$77 |
| NOI (monthly) | $563 |
| DSCR refi (75% LTV / 7.5% / 30yr) | $124K / $865 P&I |
| Monthly cash flow | $-302 |
| Cash left in deal | $57K |
Takeaways for Harvey
Harvey has deep distressed inventory and one of the most challenging end-buyer markets in metro Chicago. Section 8 cash flow is reliable. Patient capital required.
Suburban BRRRR economics in Harvey lean differently than Chicago city neighborhoods: typically lower rent-to-price ratios but more stable end-buyer markets, more predictable rehab budgets, and Cook County investor tax burden similar to Chicago.
Harvey cash flow FAQ
Estimated monthly rent for a stabilized investment property in Harvey at the $165K median ARV is approximately $1K. Suburban rents typically run lower as a percentage of ARV than dense Chicago neighborhoods because property values include premium for suburban amenities (yards, garages, schools) that don't drive rent comparably.
Harvey is in Cook County, which has the highest investor property tax burden in Illinois. Investor properties are classified at higher assessment ratios than owner-occupied.
On this modeled estimate, a typical BRRRR project at the Harvey median ARV produces approximately $-302 per month in cash flow after debt service. Cash flow is negative on the modeled assumptions — appreciation must drive returns for BRRRR to work here.
Directional cash-flow model, not personalized investment advice. Validate every assumption against current market data.