RentalCalcs · Free research worksheet · Reviewed October 18, 2026
A rent increase does not establish a better buyer return until taxes, collections and recurring work are rebuilt. Compare lakefront, downtown and suburban income separately; obtain local sales before pricing downstate apartments.
· Read the evidence and use the interactive tools
Property / legal jurisdiction: Date:
Unit count / lease type / source documents:
| Annual line | Report illustration | Your property / evidence |
|---|---|---|
| Price | $2,000,000 | ___________________ |
| Scheduled rent | $336,000 | ___________________ |
| Vacancy, concessions and collection loss (subtract once) | $26,880 | ___________________ |
| Effective collected income | $309,120 | ___________________ |
| Buyer taxes | $60,000 | ___________________ |
| Binding insurance premium | $18,000 | ___________________ |
| Management | $15,000 | ___________________ |
| Recurring repairs | $26,000 | ___________________ |
| Owner utilities | $22,000 | ___________________ |
| Administration / recurring compliance | $28,120 | ___________________ |
| Recurring expenses total | $169,120 | ___________________ |
| NOI before debt and reserve | $140,000 | ___________________ |
All example amounts are hypothetical, not local quotes. Buyer NOI = collected income − recurring operating costs. Capital work and replacement reserves are separate. Cap = NOI ÷ price × 100.
Sale address / date / source:
Actual geography, units, class and lease/regulation basis:
Price / reported NOI / trailing or forward basis:
Debt assumption, concessions, immediate work, missing inputs:
The displayed 2025 comparator is an arithmetic implication of approximately 6.0% and the publisher’s reported 25-bp increase, not a separately verified exact 2025 mean. Only one verified regional cap series is included. A single Chicago point is more honest than a fabricated statewide range. Its 2025 comparator is not a matched H1 2025 cohort. REIS operating observations and CoStar/RCA sales cover different concepts. Do not mix this average with an asking yield, small-house gross rent/value index or a professional survey.
| Loan, rate, amortization | $1,100,000 / 6.5% / 30 years | ____________ |
|---|---|---|
| Annual debt service | $83,433 | ____________ |
| Annual replacement reserve below NOI | $12,000 | ____________ |
| Down payment + closing + immediate work | $900,000 + $60,000 + $100,000 = $1,060,000 | ____________ |
| Cash after debt and reserve | $44,567 | ____________ |
| DSCR before / after reserve | 1.68× / 1.53× | ____________ |
| Cash-on-cash before income tax | 4.20% | ____________ |
Confirm lender NOI/reserve convention. Cash-on-cash uses all invested cash above; capital reserves and repairs are not interchangeable. Property value does not guarantee refinance proceeds.
Entry cap: _____% · Exit cap: _____% · Total cumulative NOI change: _____%
Value = annual NOI ÷ (cap ÷ 100). Buyer-cost correction: _____ per year. Revised NOI: _____ . Value at original cap: _____ . Wider-cap value: _____ .
NOI needed to preserve value = starting NOI × exit cap ÷ entry cap. Simple value excludes debt payoff, sale costs, taxes and interim cash flow.
Missing document / evidence that invalidates the thesis:
Maximum offer supported by buyer NOI, debt and liquidity:
Primary checks: Cook County Assessor — How commercial properties are valued · Illinois Department of Insurance — Small business insurance · City of Chicago — Residential Landlord and Tenant Ordinance. No photographed building or regional benchmark is a subject-property appraisal.