Acquisition assumptions for Waukegan
| Acquisition (85% of median) | $132K |
|---|---|
| Rehab budget (midpoint) | $95K |
| All-in cost | $227K |
| ARV | $225K |
Monthly cash flow model
| Monthly rent estimate | $2K |
|---|---|
| Property tax (Lake County investor) | −$450 |
| Insurance | −$94 |
| Vacancy reserve (7%) | −$123 |
| Property management (8%) | −$140 |
| Maintenance reserve (6%) | −$105 |
| NOI (monthly) | $843 |
| DSCR refi (75% LTV / 7.5% / 30yr) | $169K / $1K P&I |
| Monthly cash flow | $-337 |
| Cash left in deal | $58K |
Takeaways for Waukegan
Waukegan has deep distressed inventory and significant lakefront access. Section 8 rentals provide cash flow. Long-term appreciation tied to north suburb growth and Lake County development.
Suburban BRRRR economics in Waukegan 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.
Waukegan cash flow FAQ
Estimated monthly rent for a stabilized investment property in Waukegan at the $225K median ARV is approximately $2K. 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.
Waukegan 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 Waukegan median ARV produces approximately $-337 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.