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A Case Study: How to Buy a Single Family Home for Investment


SpringView Investments II acquires, renovates, leases, and operates affordable single-family homes in stable and safe communities that many Americans can afford.

The SpringView Investments portfolio currently includes more than 125 single-family homes, on behalf of our investors; most of the homes are in the Chicago area.

Here’s a case study one of those properties.

First, we loved the home, the neighborhood, and the numbers we project it could generate.

The home, on Sparta Lane in the Chicago suburb of Olympia Fields, has two-stories, 4-bedrooms, 2 1⁄2 baths, and 2,123 square feet. It was built in 1964.

We closed on the property on January 7, 2016. The purchase price was $165,000, several thousand below the price for similar homes; the average list price for like homes for sale was $172,480.

We then spent $61,750 to rehab the property, primarily for plumbing, kitchen appliances, HVAC, electricity, carpentry, carpeting, drywall, painting, siding, landscaping, and roof repair.

We are now charging $2,000 per month in rent (the median rent in Olympia Fields was $2,050 as of June 30, 2016.)

We project the annual cash flow to be $15,283, and the annual operating expenses to be $8,717.

Most importantly, the un-leveraged yield on the property was 9.26%. (We seek to produce an annual yield of 6.00% on our investment properties, not including price appreciation.)

Why Olympia Fields?

We liked its history: Olympia Fields grew up around the prestigious Olympia Fields Country Club, originally established in 1915. The club hosted the U.S. Open in 1928 and 2003.

We liked that it’s suburban: the home is 25 miles south of the Chicago downtown loop, in Cook County, Illinois.

We also liked its non-conformity: A mid-1950s ordinance was designed to make sure no two houses would look alike.

And we also liked the size of the village. Population surged from 160 in 1950 to 1,503 in 1960 and 3,478 in 1970. The population was 4,988 at the 2010 census. (Source: Encyclopedia of Chicago.)

We also liked Olympia Field’s relative livability. According to both Areavibes and John Burns Real Estate Consulting, the community had relatively low crime rates; high per capita income (a median household income of $79,762 vs. $56,853 for Illinois); and a stable housing market (the homeownership rate in Olympia Fields was 88%. vs. 68% for Illinois. All data was as of March 31, 2016.

For more information on why you should consider investing in a professionally managed portfolio of single-family homes, please contact Harold Willig at 917-209-4452 or harold.willig@springviewinvestments.com

Harold Willig is the Manager of SpringView Investment Management, LLC, which he founded in 2012. Mr. Willig also served as HFZ Capital Group’s Chief Financial Officer, and was responsible for the oversight of HFZ's Finance and Accounting team. He has over 17 years of finance and accounting experience. Mr. Willig also ran a consulting practice and provided valuation, analysis, and transactional support services to multi-billion dollar real estate companies. Previously, Mr. Willig served as the Senior Controller and Vice President of Financial Analysis and then the Chief Financial Officer of the Athena Group, a multifamily development company and fund manager.

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