Executive summary of Rental Income Property Analysis

The Enderis Park neighborhood provides urban-suburban mix feel to the residents. Enderis Park neighborhood includes lots of parks which makes this neighborhood more lively especially in the summer. The residents who live in Enderis Park are young professionals and families. The median value of the real estate in the neighborhood is $155,557 whereas the median rent in the neighborhood is $869. Most of the people who live in Enderis Park owns the houses. Approximately 56% of the residents who live in Enderis Park own the houses. 44% of the properties in the neighborhood are available for rent. The median household income in the neighborhood is $62,761. If the comparable properties compared with Lisbon apartments than it can be said that Lisbon apartment has more facilities as compared to hill view properties and garden view properties. Not only the parking of the Lisbon apartments is big and secured but it also provides green space for the residents which both comparable properties do not provide to the tenants.

Table of Contents

Executive summary. 1

Neighborhood analysis. 2

Relevant characteristics of neighborhood. 3

Population demographics. 3

Facilities in neighborhood. 5

Map of the neighborhood. 5

Comparison grid analysis. 5

Comparable property 1. 5

Comparable property 2. 6

Identifying recommended rental rate. 7

Comparing two properties with subject property. 7

Physical description. 8

Building description. 9

Structure. 9

Electrical 10

Heating. 10

Interior and exterior 10

12-month Operating Budget 10

Conclusion. 12

Rental Income Property Analysis

Neighborhood analysis of Rental Income Property Analysis

The analysis of the neighborhood is essential for determining the rental income of the property. The various facilities and features which the neighborhood provides have a significant impact on the rental income of the property. If the neighbor food provides different facilities and various locations of the city are nearer to the neighborhood than the rental income of the property will be higher similarly if the neighborhood does not provide such facilities and is too much far away from the city than the rental income will be significantly lower due to lack of facilities in the neighborhood. Features and characteristics of the Enderis Park neighborhood are analyzed critically for determining the rental income of the property. The detailed analysis of the Enderis Park neighborhood is provided in detail below:

Relevant characteristics of the neighborhood

The Enderis Park neighborhood provides urban-suburban mix feel to the residents. Enderis Park neighborhood includes lots of parks which makes this neighborhood more lively especially in the summer. The residents who live in Enderis Park are young professionals and families. The median value of the real estate in the neighborhood is $155,557 whereas the median rent in the neighborhood is $869. Most of the people who live in Enderis Park owns the houses. Approximately 56% of the residents who live in Enderis Park own the houses. 44% of the properties in the neighborhood are available for rent. The median household income in the neighborhood is $62,761. The Enderis Park neighborhood is quite culturally and economically diverse. People from different ethnicities live in this neighborhood and make this neighborhood a culturally diverse place (Chandra, 2011).

Population demographics

The population of the Enderis Park neighborhood is 3283. As mentioned earlier the neighborhood is quite diverse and people from different ethnicities live in the neighborhood. The white people population in the neighborhood is the largest. 56.4% population in the neighborhood is white people. 4.9% population in the neighborhood is Hispanic. 32.8% population in the area is black people. Asians account for only 0.2%. The mixed-race population is 5.2%. The graph presented below is providing detail information about the ethnicities who live across Enderis Park neighborhood.

Source: (statistical Atlas, 2020)

Source: (statistical Atlas, 2020)

The above graph is providing information regarding the age and gender of the population who lives in the Enderis Park neighborhood. 0.82% of children's population is male whereas 0.78% are female. 0.59% population is of male younger adults. Senior citizens account for 0.09%. The population of male college-goers is 0.29%. In short, it can be said that people from different age groups live in the neighborhood (statistical Atlas, 2020).

Facilities in neighborhood of Rental Income Property Analysis

There are many facilities in the neighborhood for the residents. The children in the neighborhood attend the mother of a good council school. For shopping, there is a sentry grocery store and Walgreens. For the residents of Enderis Park, there are many eateries which include champion Chicken, Mama’s Italian cuisine, Gard’s tavern and Ted’s and John’s sandwich shop. In short, there are plenty of options for shopping and dining for the residents of the Enderis Park Neighborhood.

Map of the neighborhood of Rental Income Property Analysis

The above is the map of the Enderis Park neighborhood. In the map, different properties located in the neighborhood can be seen. The neighboring neighborhoods include Dineen park, Lenox heights, Cooper park, Tosa East Town, etc. the nearby town includes Sunset heights, Pasadena, Washington Highlands, etc. overall it can be said that the neighborhood is among the best places to live in Milwaukee city. The neighborhood provides a high standard of living to its residents. 

Source: (Niche, 2020)

Comparison of grid analysis of Rental Income Property Analysis
Comparable property 1

The property was constructed in the year 1956. Garden view properties consist of 24 unit apartments. The property is located in the city of Milwaukee Wisconsin. The property is in the Enderis Park neighborhood and is near to many local restaurants, shops, and other services. The property is not only near to shops and restaurants but also near to the transport facilities as well. The bus route 57 is near to the property. This bus route connects the area with the central business district of Milwaukee city. In short the location of the property ideal for living.

All the 24 unit apartments in the apartment complex consist of only one bedroom. The residents who live in the apartment building will have to pay the electricity bills however the landlord of the building pays for the heat and water facilities in the building. All the units in the building are in exceptional condition and provide large kitchens. However, the major issue for the residents in the building is regarding the parking facility. The parking is limited and insecure. The occupancy rate of the building is 95% and the residents of the buildings have to pay $725 per month as rent.

Comparable property 2 of Rental Income Property Analysis

The property was constructed in the year 1951 and the quality of construction can be considered as average. Hill view properties consist of 18 unit apartments and located in the Enderis Park neighborhood. This property is located at the opposite end side of the neighborhood. Due to this, the property gets far away from various facilities or amenities. Not only the property is away from amenities but also far away from the public transport facilities as well which connects the area with the central business district of the city. The amenities which Lisbon apartments and Garden view apartments enjoy hill view apartments do not enjoy those facilities (statistical Atlas, 2020).

All the 18 unit apartments in the apartment complex consist of only one bedroom. The residents who live in the apartment building will have to pay the electricity bills however the landlord of the building pays for the heat and water facilities in the building. All the units in the building are in exceptional condition and but provide small kitchen space. However, the major issue for the residents in the building is regarding unsecured parking. The parking is big but un-secure. The occupancy rate of the building is 95% and the residents of the buildings have to pay $700 per month as rent.

Identifying the recommended rental rate

If the comparable properties compared with Lisbon apartments than it can be said that Lisbon apartment has more facilities as compared to hill view properties and garden view properties. Not only the parking of the Lisbon apartments is big and secured but it also provides green space for the residents which both comparable properties do not provide to the tenants. Besides the latest construction and renovation work in the building has further improved the quality of the building and made this building a good place to live. The amount of rent in garden view apartments is $725 whereas the rent in hill view apartments is $700. After analyzing the rents of compared apartments and the facilities provided by Lisbon apartments the recommended rental amount for the Lisbon apartments is approximately $750 (JANI, 2014).

Comparing two properties with the subject property

In the above comparison grid, it can be seen that the Lisbon apartment provides more facilities than other apartment buildings. The location of the Lisbon apartment makes it an ideal place for living. Due to the significant amount of amenities, the rent of the building is recommended to be $750 which is higher than the other two apartment buildings. The rent of the building is recommended after evaluating the location, facilities, construction quality and other factors that are associated with the property (Campbel, Edgar, & Stonehouse, 2011).

Physical description of Rental Income Property Analysis

The property was constructed in the year 1947. Lisbon apartments consist of 20 unit apartments. The property is located in the city of Milwaukee Wisconsin. The property is in the Enderis Park neighborhood and is near to many local restaurants, shops, and other services. The property is not only near to shops and restaurants but also near to the transport facilities as well. The bus route 57 is near to the property. These bus routes connect the area with the central business district of Milwaukee city. In short the location of the property ideal for living (Niche, 2020).

All the 20 unit apartments in the apartment complex consist of only one bedroom. The residents who live in the apartment building will have to pay the electricity bills however the landlord of the building pays for the heat and water facilities in the building. All the units in the building are in exceptional condition but provide small kitchen space. The major perk for the tenants in the building is regarding the parking facility. The parking is large and secure. The occupancy rate of the building is 95% and the tenants of the building are recommended to pay $750 per month as rent (Kourdi, 2015).

Building description of Rental Income Property Analysis

The building consists of 2 stories and covers round about 10,800 square feet floor area. By looking at the building it can be said that the building is constructed in the year of 1947. The building has 20 apartment units and each unit has a single bedroom. Recently a new roof is being installed on the building. The heating system, however, is older but is in good condition. It can be said that the heating system can work in the upcoming years. The painting, snow removal, plumbing, and landscaping work is done by a maintenance associate. The property is managed professionally by the company and charges a 5% fee.

Structure of Rental Income Property Analysis

Below the building, there is a basement. The foundation of the building made up of concrete bock that supports the wood frame and exterior walls of the buildings that are made up of woods. The floor beams are made up of wood. The roof of the building is made up of wood and is supported by wood beams and exterior walls. Overall the building is well constructed and the quality of construction is also quite good.

Electrical of Rental Income Property Analysis

The building gets overhead electrical service. The building gets 120/240-volt, 20 amp single phase electricity. Each unit in the building has its meter. The tenants who live in the apartment have to pay their electricity bills. The electricity bill will not be paid by the landlord. The panels that distribute the electricity are equipped with circuit breakers. In the building, copper wiring has been used.

Heating of Rental Income Property Analysis

The building is heated by 3 gas-fired water boilers. The landlord makes the payment for the heating of the building. The heat distribution in the building is done through radiators. The heating system of the building is controlled with the help of a thermostat. The water temperature is controlled by the system after measuring the outside temperature.

Interior and exterior of Rental Income Property Analysis

The walls of the buildings are clad by bricks. The doors of the units are made of steel. The windows of the building are made up of vinyl farmed double glazed. On the north side of the building, asphalt paving has been done. One window air conditioning unit is provided for every unit in the apartment building. The building has a 2.5cm domestic water supply line. The building has a single chimney on the rooftop as well. The roof of the building is sloped and has aluminum gutters for drainage.

12-month Operating Budget of Rental Income Property Analysis

Conclusion of Rental Income Property Analysis

It is concluded that If the comparable properties compared with Lisbon apartments than it can be said that Lisbon apartment has more facilities as compared to hill view properties and garden view properties. Not only the parking of the Lisbon apartments is big and secured but it also provides green space for the residents which both comparable properties do not provide to the tenants. Also, the latest construction and renovation work in the building has further improved the quality of the building and made this building a good place to live. The amount of rent in garden view apartments is $725 whereas the rent in hill view apartments is $700. After analyzing the rents of compared apartments and the facilities provided by Lisbon apartments the recommended rental amount for the Lisbon apartments is approximately $750. There are many facilities in the neighborhood for the residents. The children in the neighborhood attend the mother of a good council school. For shopping, there is a sentry grocery store and Walgreen’s. For the residents of Enderis Park, there are many eateries which include champion Chicken, Mama’s Italian cuisine, Gard’s tavern and Ted’s and John’s sandwich shop. In short, there are plenty of options for shopping and dining for the residents of the Enderis Park Neighborhood.

References of Rental Income Property Analysis

Campbel, D., Edgar, D., & Stonehouse, G. (2011). Business Strategy: An Introduction. Macmillan International Higher Education.

Chandra, P. (2011). Financial Management. Tata McGraw-Hill Education.

JANI, P. (2014). BUSINESS STATISTICS: Theory and Applications. PHI Learning Pvt. Ltd.

Kourdi, J. (2015). The Economist: Business Strategy 3rd edition: A guide to effective decision-making. Profile Books.

Mohana, R. P. (2011). Financial Statement Analysis and Reporting. PHI Learning Pvt. Ltd.

Niche. (2020). Enderis Park. Retrieved from https://www.niche.com/places-to-live/n/enderis-park-milwaukee-wi/

statistical Atlas. (2020). Overview of Enderis Park, Milwaukee, Wisconsin. Retrieved from https://statisticalatlas.com/neighborhood/Wisconsin/Milwaukee/Enderis-Park/Overview