$85K Under the 2007 Purchase Price for This 1-Bedroom: 201 E. Chestnut in the Gold Coast
This large 1-bedroom unit at 201 E. Chestnut in the Gold Coast was recently reduced.
It is a short sale and is now listed for $85,000 under the 2007 purchase price.
The kitchen has stainless steel appliances, granite counter tops and a breakfast bar.
There is central air and a hook-up for an in-unit washer/dryer.
The unit also has parquet wood floors throughout the living area.
Additionally, the property has a balcony to take in the sights and sounds of the city.
Parking is leased in the building.
Is this a deal for the square footage and location?
Dennis Shaffer at Baird & Warner has the listing. See the pictures here.
Unit #16E: 1 bedroom, 1 bath, 1030 square feet
- Sold in May 1996 for $112,500
- Sold in April 1998 for $115,000
- Sold in December 2005 for $237,000
- Sold in May 2007 for $305,000
- Originally listed in May 2009 for $319,000
- Reduced numerous times
- Currently listed as a “short sale” for $220,000
- Assessments of $526 a month (includes doorman, cable, pool)
- Taxes of $3503
- Parking is leased for $136 to $235 a month
- Central Air
- In-unit washer/dryer hook-up
- Bedroom: 17×11
Oh my these people bit off more than they should have. Is that a crib in the only bedroom? This one is not going to end well for them.
They should have at least removed the crib for the photos. It just makes an otherwise nice looking place read as cramped and small. (Though I know tons of wacko parents these days who put their kids cribs in the parents room even though they have a nursery – attachment parenting I think it is call. Horrible idea!)
It is a reasonable price for the building. I made an offer on a unit a few years ago in the building (2007) and I think we were up to 240’s in multiple offers for a low floor.
Good location, good sized 1 bedrooms, well run building with reserves, rental limits, etc
Actually, when you do all of the calculations, your monthly cost (w/o parking) is close to 1800/month. For that price, I would rather rent something in the area. This way, you have more flexibility and will avoid special assessments (which are sure to arise in such a building).
It is really terrible when even short sales/foreclosures are still more expensive than renting (mostly because of the assessments and taxes)!!!
Does anybody know how to look up the “health” (past due mortgages, strategic foreclosures, etc) of a condo building? I like 201 E Chestnut and 1150 N Lake Shore but before I even go asking around for a realtor, I’d like to do my own homework on buildings that interest me.
Yes, clio, you correctly note we are still nowhere near “rental parity” on prices, after figuring in maintenance and taxes.
You have to figure these two major expenses into the monthly cost to do a rental comparison, because they are included in your rent. Any “rental parity” comparison that leaves them out is dishonest.
Rental parity might not apply when the property is something really beautiful and exceptional and high-end, but it is the most relevant metric with an ordinary apartment like this.
” I like 201 E Chestnut and 1150 N Lake Shore but before I even go asking around for a realtor, I’d like to do my own homework on buildings that interest me.”
I own a unit in 1150 LSD (rental property). = Many of the tenants are long -term tenants. Therefore the number of short sales/foreclosures is not high (sorry I don’t have exact numbers).
The building is in OK shape (for its age) and reserves are pretty good – but I always fear that special assessment right around the corner!!! The views and location are AWESOME – but the building and units are not anythign to brag about (really feels like a rental building). The killer in this building is the assessments. My unit (bought for 200k in 2002) is a 1/1 -800sq ft and assessments are 826 per month (including everything but telephone, taxes and parking). Taxes are about 3600/month. Therefore, even though I don’t have a mortgage, my monthly expenses are 1126/month. I get 1200/month per rent – so not a great investment!!!
Sandy: medical evidence points to benefits of co-sleeping for at least the first couple months of baby’s life. Helps establish better nursing patterns, baby sleeps longer on average, reduced chance of SIDS, etc. (Can you tell I’ve been through this recently 😉 ) Totally agree that they should have moved the crib for staging, though…in a place like this, it just screams “desperate to get out of this cramped place!”
Other than the price, I actually really like the place. Were I single or looking for a second place in the city, this might appeal to me…
Short sales are going to be the wave of the future for underwater homeowners. No lis pendens, still paying the mortgage, just not enough money to bring to the table to close. There’s a second mortgage for $30k and a first for $244k which means that the seller will be negotiating short payoffs with not with one but two mortgage companies. Good luck to any buyer because you will need time and patience. By the time this actually closes I guarantee there will be even better deals to be found.
wow clio I hope you quit your day job… for your own sake
$74 a month in cash flow on your one property
-1000 a month of cash flow on the other
great investing indeed
“$74 a month in cash flow on your one property
-1000 a month of cash flow on the other
great investing indeed”
Unfortunately, that’s just the tip of the iceberg!!! Luckily, real estate was VERY good to me in the late 90s in Boston/San Francisco!!!
O/T, sorry
For those who really dig fireplaces (I know there are few here), an interesting listing of a 1900 brick 3-flat in Pilsen:
http://www.redfin.com/IL/Chicago/930-W-19th-St-60608/home/14085766
Oh stop bashing this place. It’s 1000sq ft `1 bedroom in the Gold Coast! Assesments are a tad bit high considering there is no parking assesment and one would have to rent parking (big downside) but still, 10% down and you have a 200k mortgage. Also, its a little cookie cutter-ish, but still!
This is perfect for a recent grad who is working in the city.
“This is perfect for a recent grad who is working in the city”
Wouldn’t renting make more sense for someone like this? I would think that the only types of people who may be interested would be wealthy suburbanites who want a place in the city or a single/couple who know that they are not going to have kids, love the area, and intend to stay put for several years. It doesn’t make much sense for anyone else.
I really like the furniture/decorating, even if it is a tad IKEAish or otherwise generic. That bathroom sink is killer.
Love the location of the building. Put an offer in on a place last year but didn’t get it (that’s a whole different story of what I believe to be an inside crooked sale)…
The building is NOT for the buy and rent investor as the condo association requires the unit to be held I think for at least 12 months (might be 16) before it can be rented. That kills probably 99% of any financial models you plug that into.
Clio – sure renting has its advantages, but there has to be a time limitation. If a recent grad rents for a few years, thats a lot of money to be “wasting” where he/she could invest through a purchase. Yes, that grad must have a decent job with plenty of security, but the long term advangtages for buying outweigh that of renting right now with housing prices and interest rates.
“The building is NOT for the buy and rent investor as the condo association requires the unit to be held I think for at least 12 months (might be 16) before it can be rented. That kills probably 99% of any financial models you plug that into.”
It seems like the best investments in real estate right now are land (no landlord responsibilities, upkeep, etc.). If you have extra cash and don’t mind waiting 5-6 years, I truly believe the greatest returns will be in land investments. Below is a 15 acre parcel in St. Charles, surrounded on 3 sides by million dollar homes on postage-stamp sized lots. The land is zoned R1 (40,000 sq. ft lots) and can be subdivided. It is a great investment for a builder or someone wanting to just sit on it for a few years.
http://www.redfin.com/IL/Saint-Charles/3N645-Ponderosa-Dr-60175/home/17970713
It’s always a great time to buy, right?
“Yes, that grad must have a decent job with plenty of security, but the long term advangtages for buying outweigh that of renting right now with housing prices and interest rates.”
Not always Homedelete, not always w.r.t 1980’s, 2004-2007
clio – that piece of land is a long, long term land play. That’s the edge of the sprawl, out near north and hwy 47, that’s literally the very edge, and it’s 10 or 15 minutes west of downtown St. Charles. I’m of the opinion that the days of continued sprawl in Chicago are over for a generation or so but that’s just me. Maybe out west and south where they are still having population growth but out there those towns are struggling with foreclosures, reduced tax rates, poverty, loss of population…
“I’m of the opinion that the days of continued sprawl in Chicago are over for a generation or so but that’s just me.”
Perhaps – but then again, remember that the echo-boom generation is just now starting to have families. They WILL be moving out of the city into the more kid-friendly suburbs. In addition, the high cost of living in the city (increased taxes/assessments), along w/ the crime are starting to make people seriously consider moving out to the suburbs. Seriously – look at the property – 15 acres w/a re-storable 4000 sq ft house, 15 stall barn, 3 car garage all for 599k!!! Think of what that would buy you in the city and tell me that it is not a good deal!!
Question: since that house is technically on the 15 acres, do you have to pay property taxes across all 15 acres or just the land tax?
I’m in St. Charles every so often for court and that area is out there. You’re far
“Seriously – look at the property – 15 acres w/a re-storable 4000 sq ft house, 15 stall barn, 3 car garage all for 599k!!! Think of what that would buy you in the city and tell me that it is not a good deal!!”
Out there, really far out there. You’re west of 355, the only ways to get around are one lane 31 and congested 64 and/or 12. It’s a great area to have a family in, great schools, but it’s small town living. There was a story a few years ago in the WSJ about super-commuters, those who travel two or more hours each way for work. The guy featureed in the story was a doctor who spent four hours a day commuting to a major hospital in Chicago. He said St. Chalres was the only place he could find that would give his family the lifestyle that he wanted them to live for the price he could afford.
Clio,
I thought that the trend is more families and people are looking to drop the huge commute and be more green. which has led to more city hood gentrifying and a larger portion of commuters by train.
with that trend dont you think those way out out skirts are more of a gamble than land in say humbolt park?
Why is clio posting about a 15 acre estate in St. C in a thread about an overpriced 1-bedroom in the GC?
Just sayin’..
“I thought that the trend is more families and people are looking to drop the huge commute and be more green. which has led to more city hood gentrifying and a larger portion of commuters by train.
with that trend dont you think those way out out skirts are more of a gamble than land in say humbolt park?”
It would seem to make sense – but unfortunately, the things that people didn’t realize was the significant increase in property taxes and upkeep (assessments) along with increased crime and their need for more space. All of these factors are resulting in several people wanting to move OUT of the city.
Speaking from experience,I own land un the Bourbonnais area and the big builders came down and started buying up farm land at $25,000 an acre and started developing.That has all stopped,with subdivisions sitting 3/4 empty,and prices for land back to the 6-7K range.I believe it will be years for all of the land that developers bought to get built on,and can’t see anyone coming in and subdividing for some time.
“Speaking from experience,I own land un the Bourbonnais area…”
I agree w/you – but Bourbonnais and St. Charles are 2 different areas. When people realize what kind of house/lifestyle they can live, St. Charles becomes extremely attractive. The problem is that most people don’t know about it.
“It would seem to make sense – but unfortunately, the things that people didn’t realize was the significant increase in property taxes and upkeep (assessments) along with increased crime and their need for more space. All of these factors are resulting in several people wanting to move OUT of the city.”
Your perspective on city vs suburbs taxes is incredibly skewed, being that you live in Oak Brook. Most other burbs have pretty damned high taxes in their own rights.
“Your perspective on city vs suburbs taxes is incredibly skewed, being that you live in Oak Brook. Most other burbs have pretty damned high taxes in their own rights”
True – but I also have properties in several suburbs and understand this. However, the undeniable fact is that you get a hell of a lot more for your taxes in most suburbs when compared to the city.
“For those who really dig fireplaces (I know there are few here), an interesting listing of a 1900 brick 3-flat in Pilsen:
http://www.redfin.com/IL/Chicago/930-W-19th-St-60608/home/14085766 ”
Beautiful. I really like Pilsen, but would never live there b/c of the lack of public transportation options.
“It seems like the best investments in real estate right now are land”
Buying parcels of land in areas that are not yet developed regardless of whether or not your neighbors SPENT (are not valued at) a million $$ plus for their home is not savvy advice right now.
Why would you advise some people to continue to rent and others to buy BFE land in hopes the market springs back (for either one) and they are able to make some $$ on their investment.
FWIW, my advice to everyone interested in getting in on the RE game at this time? Keep your $$$ invested in short term bonds where you are guaranteed of *some* return. Do not invest in a home unless you are financially fit enough to put down a healthy (20%+) downpayment, have a good amount in savings and plan on remaining in your new home for up to 10 years. Anything else you are taking a huge risk on and most likely will end up in foreclosure.
As always, I cannot advise anyone to purchase foreclosed or short sale properties….not for the next 5 + years, if at all.
“Why would you advise some people to continue to rent and others to buy BFE land in hopes the market springs back”
OK-…..you “got” me – the guilt is eating me up. The farm is actually one of my own personal properties that I had bought to board my horses. However, I found myself spending more and more time at my house in Oak Brook and never ever furnished, boarded my horses, or moved into the house. I really don’t mind keeping it (as I know that I can subdivide it into several lots and turn a profit) but I am a bit spoiled and am losing interest in just making money for the sake of making money.
Horses!
“It would seem to make sense – but unfortunately, the things that people didn’t realize was the significant increase in property taxes and upkeep (assessments) along with increased crime and their need for more space. All of these factors are resulting in several people wanting to move OUT of the city.”
Clio,
good point as even the groove family constantly fighting the suburb move, only for the schools, and the knowing my property taxes will go to my kid(s) and his(her) friends quality of life.
A few years ago, a study came out claiming that personal ‘happiness’ (however elusive that term might be) could only be reliably correlated to one variable: commute time. When a person moves out of the city and increases their commute time, their ‘quality of life’ does not improve; it declines.
“When a person moves out of the city and increases their commute time, their ‘quality of life’ does not improve; it declines.”
You seem to forget that a lot of people have jobs in the suburbs!!!
westloopelo – “As always, I cannot advise anyone to purchase foreclosed or short sale properties….not for the next 5 + years, if at all.”
What did you mean by this? You’re saying it’s more risky to buy a property that is a short sale than one that isn’t?
“You seem to forget that a lot of people have jobs in the suburbs!!!”
not many have jobs located in st charles 🙁
Clio, whoever you are, you are the master.
The “Horses!” comment made me laugh so hard that I started coughing.
“Clio, whoever you are, you are the master.
The “Horses!” comment made me laugh so hard that I started coughing.”
I don’t think clio meant to be funny – poor “Lightning” and “Thunder” now have to stay w/other horses up in Barrington. Maybe Clio should write another thesis: “The Plight of the Pampered Horse” LOL!!!!!
“Clio, whoever you are, you are the master.
The “Horses!” comment made me laugh so hard that I started coughing.”
He’s either incredibly thorough in maintaining a consistent, well-researched fake identity, or he’s legit albeit a bit bombastic.
@Barry, I love the counter top too. In fact, I’m looking for a 5ft glass, bathroom vanity top just like that one. But, I need two sinks. Let’s just say, they aren’t cheap and I may be forced to go with granite.
a-fed: “Clio – sure renting has its advantages, but there has to be a time limitation…. but the long term advangtages for buying outweigh that of renting right now with housing prices and interest rates.”
No that is not necessarily true. Why does there have to be a time limitation? Why does buying outweigh renting in the long term? Just because most people repeat these sentiments like religion does not mean it is true.
It is possible that home prices will continue to decline for a decade or more. It happened in Japan and it could happen here. Wishing it away with hopeful sentiment won’t make it so.
“I agree w/you – but Bourbonnais and St. Charles are 2 different areas. When people realize what kind of house/lifestyle they can live, St. Charles becomes extremely attractive. The problem is that most people don’t know about it.”
I’m out in St. Charles a few weekends a month. I’ve witnessed more than a few of these old farms bulldozed and sub-divided, and a whole series of craptacular McMansions put up, in the entire Fox Valley, most aggressively in Aurora back in the early 2000’s. I’ve got to say, none of that development has done a damned thing to improve the quality of life out there. Randall Road is a zoo on the weekends, and for what it’s worth, why would I move out there for traffic congestion and an excess of nouveau riche douchebaggery when I can get the same down Clybourn? Or the more-money-than-brains idiots on the Fox River Trail that have turned it into a dangerous nightmare, similar to trying to use the Lakefront Bike Path on a Saturday?
Don’t even get me going on the Main Street Redevelopment catastrophe out there…
“It is possible that home prices will continue to decline for a decade or more. It happened in Japan and it could happen here. Wishing it away with hopeful sentiment won’t make it so.”
Possible – but unlikely. There are other TREMENDOUS intangible advantages to owning (finishing/decorating to your liking, peace of mind that you won’t have to move every year, not having to rely on landlords for repairs) as well as tax advantages (mortgage and tax deductions – and, w/Obama, you know taxes are going up).
Not to hijack this thread for a “Mommy Wars” theme – but not all child-care experts (or parents) are all that crazy for “co-sleeping.” There can also be upsides to giving a baby his/her own bed and own room from the get-go.
OK, I’m done.
And oh, my, all this talk about owning “Land!” Now the following Famous Movie Quote is going through my just-awakened brain:
“Remember Scarlett, the only thing worth having is LAND…the red clay earth of Tara..Tara…TARA!!!”
Which by now has probably been sub-divided into tract houses, mini-malls and a “Civil War Museum.”
A lot of the bubble was based on speculation and bubbles rarely reinflate, so I see deleveraging and deflation for a long time. As I’ve said before, IMO there will be plenty of time to wait it out until prices begin to stabilize.
Aside from the danger of buying in falling markets, the main advantage of renting over buying would be flexibility to move if circumstances change. Being tied down to a depreciating asset and encumbered with huge debt are something I wouldn’t want in this economy.
“Possible – but unlikely. There are other TREMENDOUS intangible advantages to owning (finishing/decorating to your liking, peace of mind that you won’t have to move every year, not having to rely on landlords for repairs) as well as tax advantages (mortgage and tax deductions – and, w/Obama, you know taxes are going up).”
tomaso,
while I agree w/ your overall logic, I think what most people in this country still don’t understand is that there are a LOT of sharks w/ a LOT of money out there. If a great deal in real estate presents itself, who do you think is going to get it? It is NOT going to be the poor schmuck w/ a 80k/yr job and family to feed (who barely has 20% to put down and has to get a mortgage). It is going to be one of these investors, paying cash. So all you dreamers out there, better not get out of bed – it is EXTREMELY hard to compete w/ these sharks.
And Clio, are you one of those overleveraged speculators who would like to offload some of your “assets” to stop the bleeding and are hoping not to have to bring money to the table?
“And Clio, are you one of those overleveraged speculators who would like to offload some of your “assets” to stop the bleeding and are hoping not to have to bring money to the table?”
nope – just trying to impart some knowledge to underinformed people out there who are patiently waiting for “great deals” to come along (and, yes the deals will come – but the best ones will definitely be bought w/ cash, etc.)
Clio, the sharks are going to eventually have to sell their investment to an end user i.e. the poor schmuck w/ a 80k a year job and family. Unless the sharks plan on flipping the property among themselves…which we know how well property flipping worked last time.
“It is NOT going to be the poor schmuck w/ a 80k/yr job and family to feed (who barely has 20% to put down and has to get a mortgage). It is going to be one of these investors, paying cash. So all you dreamers out there, better not get out of bed – it is EXTREMELY hard to compete w/ these sharks.”
So the flippers are just playing a game of musical chairs?
“No that is not necessarily true. Why does there have to be a time limitation? Why does buying outweigh renting in the long term? Just because most people repeat these sentiments like religion does not mean it is true.
It is possible that home prices will continue to decline for a decade or more. It happened in Japan and it could happen here. Wishing it away with hopeful sentiment won’t make it so.”
This may happen, it may not. Nobody knows. But here’s something you can know about the differenct between renting or buying. Assume house prices do continue to decline for a decade or more. Let’s say 15 years. You keep renting. I just bought a house on a 15 year mortgage. In 15 years you will have put a fortune into rent. And you’ll have two options: keep putting a fortune into rent, or buy your first home because you think prices have finally bottomed. In 15 years I’ll own my home free and clear. Under the worst case scenario it may be worth a little less than I paid for it. But I’m now rent and mortgage free while you’re in the same spot you were 15 years ago. You can flyspeck the percentages all day long, but it makes sense to me, and that’s why I recently bought.
I’m a shark in the water where most people are fish and I am gettin fat….
Amen, Alanon!! people always tend to forget that difference in renting/buying b/c they are only thinking “short term”. Also, remember that when you buy a house, your monthly payment stays the same – so in 20 years, your monthly payment will be the same (for prinicipal/interest) while rents may significantly increase.
“It is NOT going to be the poor schmuck w/ a 80k/yr job and family to feed (who barely has 20% to put down and has to get a mortgage).”
screw buying a Lamborghini i just bought a hot tub time machine and brought back a Ceratosaurus that i rode to work today.
btw clio your a tool and your down tone to people is why…well you know
“btw clio your a tool and your down tone to people is why…well you know”
yeah – and I suppose you’re (not your) a magnanimous person – especially w/such nice comments (hypocrite)!!!
haha that reminds me of this great exchange from Futurama
That Guy: “There are two kinds of people: sheep and sharks. Anyone who is a sheep is fired. Who is a sheep? ”
Dr. Zoidberg: “Errr, excuse me… which is the one people like to hug? ”
That Guy: “Gutsy question. You’re a shark. Sharks are winners, and they don’t look back because they have no necks. Necks are for sheep.”
“yeah – and I suppose you’re (not your) a magnanimous person – especially w/such nice comments (hypocrite)!!!”
nope no hyporcite just calling like i see them.
westloopelo – “As always, I cannot advise anyone to purchase foreclosed or short sale properties….not for the next 5 + years, if at all.”
What did you mean by this? You’re saying it’s more risky to buy a property that is a short sale than one that isn’t?
In my experience with short sale units, there has always been some sort of deep damage (structural, electrical or plumbing issues) that were not visible during the initial inspection. It is well known in my circle that sellers who are forced out of their homes will do damage for having made a bad decision that forced them to lose everything. As ‘parting gifts’, they would do as much damage to the property as possible…sort of a “I got the last laugh before the bank took my house away” mentality. Unfortunately most short sales do not allow inspections and they are aa is purchases.
I lost a ton of $$ on two places when the foreclosure and walk aways started to become the get even solution to their problems.
Foreclosures are not as messy, but to me they reduce the comp numbers in the hood and it becomes a difficult thing to recoup the $$$ invested as a renovator.
Attachment parenting actually breeds more confident, happier children. The theory is that the baby knows and is confident that their parents will always be there for them, leading to more independent and less clingy kids. Think about it, if baby wants mom, and mom is always there for them, they won’t be as clingy as a baby who is less “attached” and constantly trying to get moms attention.
But who knows if these parents even practice attachment parenting… it’s a 1 bedroom, where else would they put the crib! But yes take it out for the pics.