Want To Be A Landlord? Check Out This 2/2 At 2700 N. Hampden in Lincoln Park
This 2-bedroom at 2700 N. Hampden in Lincoln Park has been on the market since June 2012.
It is a short sale.
It is a north east corner unit with hardwood floors.
It doesn’t have central air (wall units only) or in-unit laundry but there is rental parking available in the building OR a spot can be purchased.
This is a full service building which is popular with renters as it has a doorman and a rooftop pool.
The unit has been reduced $10,000 to just $225,000.
Does this make sense to buy as an investment?
Chris Vasilakopoulos at Dream Town Realty has the listing. See the pictures here.
Unit #12B: 2 bedrooms, 2 baths, 1000 square feet
- Sold in March 1994 for $120,000
- Lis pendens foreclosure filed in May 2012
- Originally listed in June 2012 for $235,000
- Reduced
- Currently listed as a “short sale” for $225,000
- Assessments of $511 a month (includes doorman, cable, pool)
- Taxes of $3634
- No central air- wall units only
- No in-unit washer/dryer
- Parking available as rental or to buy in the building
- Bedroom #1: 15×14
- Bedroom #2: 14×11
At first glance a 2/2 in LP at 225k is somewhat appealing, but with no central air, no in unit laundry, no parking included, and a kitchen that needs upgrading… no thanks.
At $225k, Mortgage, HOA and Taxes will cost around $1600. This is sold “as is”, so add another $300-$500 cushion for repairs (say $400). Then add about $200 for profit to get a 5% return on your investment. Total rent would be about $2200 which is doable in this area. However, tenants will have to pay for parking (say $175). Price should be around 190k to make the economics work
“At $225k, Mortgage, HOA and Taxes will cost around $1600”
You can’t include the principal payment without factoring it into the ROI.
Wouldn’t buying a two flat/three flat make more sense for a first time landlord? You don’t have to worry about special assessments or the board changing the rental rules. My friend just bought a three flat in Berwyn as an income property. Yeah.. it’s Berwyn, but she’s not going to be living there. It already has renters in place and only cost $125k.
What does everyone think? Is it generally better to buy a cheap three flat or one condo unit?
Per the agent remarks on the list sheet, the building is capped out on rentals and there’s a waiting list. Hypothetically though…
The central air isn’t an issue. Renters will deal with those sleeve units and compare them to central air. People just don’t want to buy/install/sacrifice a window for a window unit A/C. And I’m amazed what people are willing to pay for apartments without in-unit laundry now that prices have shot up.
This comes close to working. If you owned it today you could probably find some desperate renter to pay $2,100-$2,200 for Aug 1. But if stuck with it in the winter, you’re not looking nearly as good at $1,900. And the high assessments at these old high rises always ruin the investor appeal.
“But with no central air, no in unit laundry, no parking included, and a kitchen that needs upgrading… no thanks.”
These are all very common issues that you have to deal with in high-rise buildings like this in LP, OT and GC… while somewhat inconvenient, it’s just the way it is and usually accepted and dealt with by renters. Parking is almost always extra and additional cost for renters who want to live in these neighborhoods.
Hard to tell what “as is” repairs are needed, but with a doorman and rooftop pool for this location and size unit, I would think you could pull off $2.5k/month for this unit if you made some slight improvements/upgrades.
Sabrina check out 1922 wolfram in n center. Greystone in n center with ask of 410k.
“Is it generally better to buy a cheap three flat or one condo unit?”
I’d go strong on the cheap three flat, if you can find a cheap three flat in a neighborhood you feel comfortable collecting rent in.
“1922 wolfram in n center. Greystone in n center with ask of 410k”
1. Not a greystone.
2. 6 cap at current rental rates, which rates seem about right, so kinda pricey as a investment.
3. Despite what they say, not a good conversion option at that price, as it’s narrow and has party walls on both sides (which, in case Jay is reading, isn’t okay for a $800k house in *this* location).
I’ve never been fond of this building, but the location can’t be beat and this unit looks pretty good for what it is.
This seems like a good place for an elderly person who no longer drives, sends her laundry out, and whose body thermostat is a bit off and always feels cold.
It’s surprising this building would be popular with young people.
“It’s surprising this building would be popular with young people.”
I’m guessing you’ve never been to Clark & Wrightwood, Deming or near perhaps….. say…. DePaul University?
Also guessing you never use any of the lakefront paths or a rooftop pool during the summer on a Friday-Sunday afternoon…
“What are you looking at? You never seen a kid in a bubble before??”
Whoever wrote this didn’t do their homework. I know for absolute fact that the building is at max rental cap and no additional investor owners are allowed..
“I’m guessing you’ve never been to Clark & Wrightwood, Deming or near perhaps….. say…. DePaul University?”
I didn’t say this neighborhood, I said the building. I don’t see the appeal of this building to young professionals. Perhaps college students could put up with the lack of parking/air conditioning/washing machine, but I would guess these students would be looking at lower cost walk up apartments.