Acquisition assumptions for Highland Park
| Acquisition (85% of median) | $633K |
|---|---|
| Rehab budget (midpoint) | $245K |
| All-in cost | $878K |
| ARV | $945K |
Monthly cash flow model
| Monthly rent estimate | $7K |
|---|---|
| Property tax (Lake County investor) | −$2K |
| Insurance | −$394 |
| Vacancy reserve (7%) | −$516 |
| Property management (8%) | −$590 |
| Maintenance reserve (6%) | −$442 |
| NOI (monthly) | $4K |
| DSCR refi (75% LTV / 7.5% / 30yr) | $709K / $5K P&I |
| Monthly cash flow | $-1,417 |
| Cash left in deal | $170K |
Takeaways for Highland Park
Highland Park has significant tear-down activity. Historic restoration projects in landmark districts can clear strong margins. Hard money used for fast-close estate sales.
Suburban BRRRR economics in Highland Park lean differently than Chicago city neighborhoods: typically lower rent-to-price ratios but more stable end-buyer markets, more predictable rehab budgets, and lower effective tax rates than Cook County.
Highland Park cash flow FAQ
Estimated monthly rent for a stabilized investment property in Highland Park at the $945K median ARV is approximately $7K. 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.
Highland Park is in Lake County, which generally has lower effective property tax rates than Cook County for similar property types — material to BRRRR underwriting.
On this modeled estimate, a typical BRRRR project at the Highland Park median ARV produces approximately $-1,417 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.