North Center Cottage Reduces Again: 1750 W. Grace

We’ve chattered about this North Center cottage at 1750 W. Grace numerous times over the past year.

See our April 2009 chatter here.

It has been reduced another $25,000 and is now listed under the 2006 purchase price.

The listing now also calls it a “great alternative to a condo.”

Several of you seemed to think it would sell closer to $500,000 (in the end.)

Scott Zelkin at @Properties now has the listing. See the pictures here.

1750 W. Grace: 4 bedrooms, 2 baths, 2400 square feet, 2 car garage

  • Sold in May 2006 for $555,000
  • Was listed in May 2008 for $669,900
  • Reduced several times
  • Was listed in November 2008 for $584,900
  • Withdrawn
  • Re-listed in April 2009 for $575,000
  • Reduced
  • Currently listed for $550,000
  • Taxes of $8407
  • Central air
  • Basement

15 Responses to “North Center Cottage Reduces Again: 1750 W. Grace”

  1. Still at peak pricing…Just like everybody else currently trying to sell. Funny how 90% of the homes for sale were bought between 2004-2006.

    Maybe it trades around $470K.

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  2. Eric Rojas wrote:
    “BOB buddy, you have grossly underestimated the single family home market in this area. $500K is way too low. My personal number I’d buy the home for is much higher.”

    Well Eric here we are a year later. None of us will stop you from putting in a bid. Go be a proud owner of the home of your dreams!

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  3. I thought about getting a sfh around june of last year. it was homes like this priced at nearly 700k that scared me into renewing my lease.

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  4. Tiny rooms (don’t count kneewalled floor area in 2nd floor bedrooms as true floor-space) and Home Depot quality remodeling don’t support asking price. A 14′ x 11′ livingroom is too small. House would have been a teardown candidate three years ago when seller bought home; now it’s priced too high for a too soft market for a (now nonexistent) speculative developer’s interest. In 2006, this house probably was a prudent purchase in a hot market, now it’s a bad investment in a softened market, with an obsolete floor plan and an old house difficult to sell.

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  5. “now it’s a bad investment in a softened market, with an obsolete floor plan and an old house difficult to sell.”

    Only because of the price they paid. In 1996 it sold for $238k. At 4%/yr, that’s $400k now. At $400k (or maybe even $450k, giving some credit for post-96 updating), it would be a fine little house. $555k included about $500k for the lot, which ain’t worth $300k right now.

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  6. I have rehabbed a number of these types of houses and when done correctly, they are a good investment for a first time buyer. Although I am not the type to say a place is overpriced, I do have to make that comment about this particular prop.
    The ones I renovated were priced in the high $100s and took around $60-75k in reno costs. I would then turn them around for around $260 give or take.
    At that price point, it was a solid investment for a couple or small family as an entry into the market. A few months ago, one I sold in 2003 for $280, sold after 30 days for $355k. So based on that info, I can not agree that this place is a good deal at all.

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  7. “A few months ago, one I sold in 2003 for $280, sold after 30 days for $355k. So based on that info, I can not agree that this place is a good deal at all.”

    Not disagreeing with you, but that wasn’t in Chicago, was it?

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  8. You know anon, I have to tell you it is so refreshing to have one sensible and intelligent poster here who, even if he/she might question a post, does so with courtesy and intelligence…so Thank You for your civility!

    You are correct, the house I posted about was not in Chicago, but I was using it in response to architect’s post about this type of house not being a good investment deal due to it’s age and obsolete floor plan. More about the style/floor plan and not a comparison for the Chicago market.

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  9. “I was using it in response to architect’s post about this type of house not being a good investment deal due to it’s age and obsolete floor plan. More about the style/floor plan”

    So, sort of agreeing with my post right above yours, in thought if not magnitude.

    On the ~$200k acquisition + reno places, you look for basis +20%, give or take? Aiming for

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  10. Ideally, in years past, a 20% profit was a fair number to shoot for. At that rate, it was not a huge fight to get a sale in a short time.
    I am not the type of renovator who picks up a $200k place, does low dollar/bare bones improvements (under $20k) and then sits back expecting a $500k sale. My entry level class of renovations are designed to provide as much usable floor space as possible (floor plan tweaking) while updating the basics…baths, kitchen, windows/doors, new appliances, etc.
    My mid to upper range property renovations are done with higher to top grade materials with more attention paid to the smaller details…adding/replacing/refinishing ‘luxury’ materials/ items…custom millwork, restoration of period features, granite, top end appliances, tankless waterheaters, entertainment center pre-wiring, pro landscaping, etc. And that class, of course would command a higher percentage of profit due to the more intensive and time consuming work.
    So MY projects don’t really have a ‘set in stone’ percentage return rate. It all depends on the market and individual project. At this point in the game, I am focusing more on renovating then utilizing the property for rental income where in the past around only 15- 20% of my projects were intended for rentals. Today, hopefully, as in many past projects those rentals eventually end up with a sale to the tenants.
    I run my operation a lot different than most rehabbers/flippers as I view my work more as a creative ‘hobby’ that provides myself and my crew a very lucrative living. I learned early on that greed and questionable work standards ended up with a person seeking a new career a few years into it.

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  11. “And that class, of course would command a higher percentage of profit due to the more intensive and time consuming work.”

    Of course. And ~20% seems fair to me on an entry-level type property. And self-financing amkes the numbers work a lot better, too.

    You don’t “pay” yourself anything out of the reno budget? The $60-75K is all out-of-pockets (of course including your crew’s wages)?

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  12. A percentage is set aside for all salaries and my portion only covers a % of my living expenses. In order to keep all sales prices competitive, in some cases I rely on the rental income for a % of my salary. My payout comes with the sale of the home.
    My 5 workers have been with me for a very long time…my two foremen rehabbed my first house (the 3200+ sf place I had mentioned in a prior chat) with me and lived rent free in a portion of it while we built it out. In most cases when we are in a city away from their homes, I cover all living expenses for them. I took the idea of running my business this way from the way my own family ran ours. You worked you ass off and your needs were taken care of +.
    Once I got my business established, I was able to provide them with a renovated house at a very low price and their payments were made with their hard work…basically no money changed hands. They paid off their home in well under ten years on an interest free ‘mortgage’ (if you can call it that). Over the years they have turned their bare bones $100k home into a place that is now appraised at $675k…not bad for some elbow grease, huh?

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  13. Still listed for $550K

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