Are Investors Still Buying Condos? A 2/2 at 235 W. Van Buren in the Loop
This 2-bedroom in 235 W. Van Buren in the Loop recently came on the market.
The building was constructed in 2009, during the bust, and has 714 units and a parking garage.
This unit is a corner unit on the 36th floor so it has two walls of windows and views.
The unit has exposed cement ceilings and hardwood floors in the main living areas.
The kitchen is open to the living/dining room and has white cabinets, granite counter tops and stainless steel appliances with a breakfast bar.
Both bedrooms are fully enclosed.
The master suite has an en suite bathroom and walk-in-closet.
It has the features buyers look for including central air, washer/dryer in the unit and 2-car tandem parking is $50,000.
The listing says the building is “investor friendly” with “no rent cap.”
The building is also, according to the listing, just 44% owner occupied.
Is becoming a landlord and renting out condos still a “thing” in 2019?
Matt Laricy at Americorp has the listing. See the pictures and floor plan here.
Unit #3601: 2 bedrooms, 2 baths, 1292 square feet
- Sold in January 2010 for $487,500 (included the parking)
- Currently listed at $449,888 (plus 2-car tandem parking for $50,000)
- Assessments of $499 a month (includes heat, a/c, gas, doorman, cable, Internet, exterior maintenance, scavenger, snow removal)
- Taxes of $9909
- Central Air
- Washer/dryer in the unit
- Bedroom #1: 11×11
- Bedroom #2: 11×15
- Balcony: 5×7
- Walk-in-closet: 8×4
I’m not feeling well so there won’t be a new post today. But since no one could post on this one anyway- it all works out well in the end.
Hopefully, I’ll feel better tomorrow so there will be a post on Friday. A lot is going on. It’s spring buying season, after all. (even though it doesn’t feel like it outside.)
Great views! Nice outdoor space, decent layout and all at a very low price. Heck, forget about renting it out. This could make a good downtown retreat for a suburban couple.
Looking at the other units for rent, seems like this one might ask about $2750, plus maybe $500 for the tandem spaces. Using $3250, rounded costs, a 5 cap, and Stevo’s napkin you get:
[12*(3250-500)-10000}/.05 = $460k
I personally don’t think a 5-cap (ignoring vacancy, maintenance, entry/exit costs and tax risks, etc) is so great at the moment, but it of course looks a lot better levered up (even with an honest, investor, loan). It also indicates that it’s not kookoo priced for a o-o. Assuming that the rent values are about right, of course.
Are there property taxes on the parking? Those taxes seem too high.
“Are there property taxes on the parking”
yes, they usually have separate pin numbers too
He who shall no be named’s favorite building!
I just popped over to his site for the first time in years. It appears to just be “sponsored content” for renters now. Kinda sad.
Taxes are normal. Tier 1 has the best layout in the entire building. Building has good reserves (or did 4 years ago when I owned a unit there). Very clean, despite of a the fact that most units are rented out. Assessments are kept low due to lack of amenities.
Once the development across Congress takes off and more restaurants come to this area, 235 WVB will be positioned much better.
a 10×11 master bedroom is the best layout in the entire building? yikes
“I just popped over to his site for the first time in years. It appears to just be “sponsored content” for renters now. Kinda sad.”
In his defense, he used to specialize in information on the new condo buildings. But there haven’t been any in 10 years (other than luxury buildings- which isn’t the same market.) But with dozens of apartment buildings going up, why not focus on that instead? That’s where the eyeballs are now.
One of the reasons this was a favorite of mine is that CribChatter discussions of the building showcased the stunning, unrelenting, oh-so-smug ignorance of most of the commenters here.
We didn’t even say his name! Lol.