Buy A 2-Flat in East Humboldt Park For Just $95,000: 923 N. Francisco
This 2-flat at 923 N. Francisco in East Humboldt Park just came on the market.
It is a short sale and is listed at just $95,000.
Both units are rented for the following:
- Unit #1: 2/1 with rent of $800 a month
- Unit #2: 2/1 with rent of $800 a month
The building is on a standard 25×125 lot and has a 2 car garage.
From the interior pictures, it appears that the kitchens have been updated as they have maple cabinets and stainless steel appliances.
The listing says the building is “partially renovated.”
Does this building make sense for an investor?
Kathy Li at Century 21 S.G.R. has the listing. See the pictures here.
923 N. Francisco: 2-Flat, 4 bedrooms, 2 baths, 2 car garage
- I couldn’t find a prior sales price but it looks like it last sold in the 1980s (?)
- Lis pendens foreclosure filed in December 2011
- Currently listed as a “short sale” for $95,000
- Tenants pay utilities
- Taxes of $4583
- Rent of $1600 a month (2 units)
Are those punch holes in the drywall in the hallway? How new/leaky is the roof? Is the garage in decent shape or falling apart? Assuming it is in decent shape, rental income minus taxes/insurance and being disciplined about setting money aside for capital improvements means you might realize an 8% rate of return.
looking at the citi-data numbers,the prices have been absolutely plummeting over there,but sales seem to have stayed steady.
This area is interesting. During the run up of the bubble it was one of those fringe areas starting to attract investor activity. Buildings like this one were selling for $300k+. Now tear downs are going for <$50k. I am somewhat surprised the modular builder Smarttech homes are selling in the area…
http://www.redfin.com/IL/Chicago/910-N-Richmond-St-60622/home/13288798
How does this area compare to Smith Park/The Patch which is just a few blocks away?
I was expecting a lot worse actually, but I don’t think the short sale price will be approved, wouldn’t surprise me to see the bank stonewall and try to get at least 300k for this
Nicer than I expected… is the neighborhood safe?
Well, the water in the walls is an obvious concern. This one would need a good inspection.
“Nicer than I expected… is the neighborhood safe?”
well Sabrina usually visits a place and takes her own photos. She probably left skid marks and she exited this block.
This hood has its fair share of wandering wackos but its nowhere near as bad as west of the park
“wouldn’t surprise me to see the bank stonewall and try to get at least 300k for this”
That would be nuts as the face amount of the (2007 vintage, refi of a 1986 loan) mortgage was $115k. And it looks like payments were made for at least 3 years.
“Is the garage in decent shape or falling apart?”
No garage. Listing sez outdoor parking, birdseye shows a slab (and appears to show a car parked off the slab in the grass).
Also, building is really short (front to back), and appears to be w/o a basement.
Still, good price, assuming no major defects and repeatability of the rent.
“water in the walls”?
which photos? The 5th photo looks like someone scrawled on the walls and then they later washed them, but it left smeary mess, not water stains.
or do you know something we don’t?
I have a client that purchased a three flat in the area during the bubble. He found tenants and gave a hand at ‘landlording’. In the third month he tried to collect rent from a tenant and he said, nearly verbatim, if I ever see you ever come around here again to collect rent I will kill you. So, he was scared, and he just walked away from the building. He didn’t call the police, or anything, just said “OK” and never returned. True story.
“which photos? The 5th photo looks like someone scrawled on the walls and then they later washed them, but it left smeary mess, not water stains.”
That’s the photo I was looking at. It looked like someone punched holes in the wall with a screwdriver, etc to let it air out, but maybe I am mistaken.
“In the third month he tried to collect rent from a tenant and he said, nearly verbatim, if I ever see you ever come around here again to collect rent I will kill you.”
If you were a landlord in this area, what would the prospects be of getting some hipster-artsy-type tenants instead?
“How does this area compare to Smith Park/The Patch which is just a few blocks away?”
What a difference a few blocks makes. This area bound by Sacramento-California and Chicago-Division has a bunch of section 8 housing. The Smith Park area does not have any (at least visible).
I would expect the rent paid by direct deposit. Who uses checks anymore? Using direct deposit should at least filter out some of the scumbags.
jenny (July 24, 2012, 10:34 am)
I would expect the rent paid by direct deposit. Who uses checks anymore? Using direct deposit should at least filter out some of the scumbags.
Feel free to directly deposit the cash upon receipt. Using ACH would nearly eliminate your potential tenant base.
“I would expect the rent paid by direct deposit. Who uses checks anymore? Using direct deposit should at least filter out some of the scumbags.”
People choose to live in certain areas for reasons. 2/1’s for $800 exist all over the northwest side in safe area and in the suburbs. If you choose to rent a 2/1 in humboldt park for $800 you know exactly what you’re getting into.
“2/1?s for $800 exist all over the northwest side in safe area and in the suburbs.”
Totally not challenging you.
Just curious.
Where can you rent a 2/1 for $800 in a safe area on the Northwest side these days?
OK $800 is a stretch. More like $1,000.
so you’re basically talking about renting to people who don’t have bank accounts? That’s just asking not to be paid rent.
and that guy who walked away probably did zero tenant screening, including no credit checks.
some people should not play at “landlording”.
Rootstock is around the corner from here. Feed & California Clipper, etc. If you’re patient and wait for the right tenants this could work out fine. Seems like the hipsters priced out of Wicker Park might land in this area.
Wouldn’t it be more interesting to convert to single family, if the city were to pitch in 12- 30K?
http://www.cityofchicago.org/dam/city/depts/mayor/Press%20Room/Press%20Releases/2012/February/2.15.12CommunityLandDev.pdf
In addition, it would appear the city is trying to flip the neghborhood with those taxes.
DB — not to confuse with DZ — did you mean to post a link is specific to Bronzville on a thread about Humboldt Park?
If you scroll down, db’s article mentions the program concerning Humboldt Park.
However it appears the boundaries for the program are Grand/Lake/Kedzie and Pulaski which would exclude this particular home if I am understanding this correctly.
The area the grant would cover is more Garfield Park than Humboldt Park.
Interesting article and program though.
Thank you for sharing, db.
“What a difference a few blocks makes. This area bound by Sacramento-California and Chicago-Division has a bunch of section 8 housing.”
Yep, back in the bubble days I looked at a building in this area. The building looked great, but I could have purchased crack on either end of the block.
Wow homedelete what a disaster. What I mean by that is landlord screwed up.
If every landlord acted like that, well every tenant would act like that.
I would call the police right then and there AND press charges.
Being a landlord is not for the faint of heart.
Imagine being a king or a lord over land like the in old days
and a serf or tenant or whatever said that to the lord of the manor.
Pretty sure in those days the serf or tenant or whatever wouldve
been dispatched in short order.
Nowadays alot of people are full of bluster. If you act like a
normal person and treat people with respect and respond
like a normal person should you WILL get far in this world
or you could just turn tail and run and lose your entire investment
at the first sign of trouble.
This house is now under contract.