18 Months Later, Lakeview 2-Flat Returns at the Same Price: 1542 W. Byron
We last chattered about this 2-flat at 1542 W. Byron in Lakeview in July 2008.
See our prior chatter here.
Back then, it was a lively discussion with some saying that this was priced reasonably and others arguing it didn’t cash flow.
It is 18 months later and the seller is trying again at the same price.
The two units consist of:
- Unit #1: 2 bedrooms, 1 bath, rented for $1200 a month
- Unit #2: 2 bedrooms, 1 bath, rented for $1195 a month
There is no parking. The listing says the building is “land locked.”
There is central air and laundry in the basement.
Greg Viti at Koenig & Strey has the listing. See the pictures here.
1524 W. Byron: 4 bedrooms, 2 baths, no parking
- Sold in 1995 for $209,000
- Was listed in July 2008 for $499,900
- Withdrawn
- Currently listed for $499,900
- Taxes of $9452
- Separate central air/heat
- No parking
It’s interesting that after adjusting for inflation, the 1995 price of $209,000 would be $294,000. Over priced and still in bubbleland? Yes.
$10k taxes? Brutal
$2,400/mo rent less $800 RE taxes = $1,600 monthly NOI.
Annual NOI = $19,200
At a 7-cap, value = $275,000
$499,000?? LOL.
2400/mo equals like 300K financed ( piita)
to b/e right?
multi-unit did the calc right!
and wow. HD!, this was b4 i really read cc; is this out of context or sarcastic, cause bob was the same.
only if i read this thread b4 i bought ; that multi guy know what hes talking about with rentals
“#
homedelete on July 28th, 2008 at 12:34 pm
Just a few years ago 2 flats less than half a mile to the west were selling in the 800’s. Granted, they had parking and deeper lots but nevertheless, $499k seems like a reasonable place to start negotiations.
“
I think it’s worth around $400K. But some idiot will probably buy it for more…
$400K for owner occupied might be justified. Not as an investment property.
“I think it’s worth around $400K. But some idiot will probably buy it for more…”
Revassal,
Nice catch of my previous quote. I’m not quite sure what I meant by that statement other than, in July 2008, I was happy to see prices dropping from the near $800k price tags.
A lot has changed in the last 18 months (as everyone here is aware) and it’s pretty safe to say that even today $499,000 looks too expensive.
“revassal on January 29th, 2010 at 8:06 pm
2400/mo equals like 300K financed ( piita)
to b/e right?
multi-unit did the calc right!
and wow. HD!, this was b4 i really read cc; is this out of context or sarcastic, cause bob was the same.
only if i read this thread b4 i bought ; that multi guy know what hes talking about with rentals
“#
homedelete on July 28th, 2008 at 12:34 pm
Just a few years ago 2 flats less than half a mile to the west were selling in the 800’s. Granted, they had parking and deeper lots but nevertheless, $499k seems like a reasonable place to start negotiations.”
no we can all be wrong about parts of this mess (right, G!), but for certain each of us saw a piece of the puzzle.
also HD what you were feeling about the house is why people buy above the real price the place is worth, its all emotional, yeah some can distance but its hard, especially when people are telling you you better live there for a billion years, you better love it as much as making the finances work too.
i didn’t notice when the side colors were change but it really is good and helps with eye strain! thanks
No way would this place cash-flow anywhere near this price. Especially if you account for ALL expenses such as a maintenance budget, allowing for vacancies, etc. And I wouldn’t expect rents to be going up anytime soon.
Am I the only onew who doesn’t believe in this owner – occupied price for multi units? I mean once you overpay as a “owner occupier” you pretty much limit yourself to someone valueing the property for as much as you do, and not someone who can make it work as a rental.
I find nothing more frustrating then looking at a unit, and finding out it has a $50K kitchen in one unit or a updated bathroom as the basis for exhorbiant prices
ah, I wondered about what happened to this beautiful greystone. still love the staging of the yard. thanks for the update
“and wow. HD!, this was b4 i really read cc; is this out of context or sarcastic”
I dunno what HD looked at, and I’d say it was mainly .5–1.0 miles west (ie, in Bell), but there were two and three flats listing for $800k+ (hell, there are 4 listed at $665, $699, $699 and $725 *right now*). Also, there are a *lot* (like dozens) that are of-record as two-flats either in sale records, with the assessor or both, that are actually SFHs. So, depending on the source, HD may have seen a mix of real multis and converted multis at the $800k+ price.
yeah anon that seem right
“HD may have seen a mix of real multis and converted multis at the $800k+ price.”