A Year on the Market and Finally Under Contract: 2523 N. Burling in Lincoln Park
We first chattered about this 3-bedroom greystone vintage unit at 2523 N. Burling in Lincoln Park in April 2008. Someone said then that it would sell for near the asking price of $600,000.
See our prior chatter and pictures here.
The unit has remained on the market ever since and has been reduced $70,000.
It is also listed $66,000 under the 2006 purchase price.
It seemed to have it all – with an updated kitchen and baths, parking, central air and outdoor space.
Stay tuned on a closing price.
See the listing and pictures here.
Unit #2: 3 bedroom, 2 baths, 1625 square feet
- Sold in September 1988 for $192,000
- Sold in March 1994 for $223,000
- Sold in June 2006 for $595,000
- Originally listed in April 2008 for $599,000 (parking included)
- Reduced
- Was listed in July 2008 at $579,000 (parking included)
- Reduced
- Was listed in January 2009 at $575,000 (parking included)
- Reduced
- Was listed in February 2009 for $549,000 (parking included)
- Reduced
- Currently listed for $529,000 (parking included)
- Under contract
- Washer/dryer in the unit
- Back porch
- Central air
- Assessments of $100 a month
- Taxes of $5873
$500-$525 closing seems reasonable since it has all [my] essentials and a “cheap” assessment.
I always hate how I seem to never comment on prior chatters that come up in the future, but feel like i comment on 90% of chatters. I need a benchmark for my previous thoughts to vindicate/disprove them
Still seems a little small for the price, but some people really like that Victorian look I guess.
” Someone said then that it would sell for near the asking price of $600,000.”
That “someone” was a “Bob”. Is that our same Bob, the bear?
With that low of an assessment wouldn’t you most likely have to chip in more throughout the year (as problems arise)? Seems like w/3? units @ $100 that $3600 a year may not be enough for everything.
I’d rather pay $100 and sock away $100/month in an emergency fund than pay $200 every month…
From Crains today:
In the city of Chicago, sales fell 42.2% in March, to 1,181 compared with 2,044 in March 2008. The Chicago-area median price — where half the homes sold for more and half sold for less — was $194,000 in March, down 21.8% from $248,000 in March 2008, the Realtors’ group said.
The median price in the city was $220,000 in March, down 26.9% from $300,980 in March 2008.
“I’d rather pay $100 and sock away $100/month in an emergency fund than pay $200 every month”
Yeah, either way, a special is a (near) certainty when there’s anything major that needs to be fixed.
Also from CNNMoney –
“Across the nation, foreclosure activity in the first quarter hit a record high, according to another RealtyTrac report issued last week. Total foreclosure filings reached 803,489 in the first three months of the year, the highest monthly and quarterly totals since RealtyTrac began reporting in January 2005.
The national report also found that the worst of the foreclosures were centralized in a handful of worst-hit states. California, Florida, Arizona, Nevada and Illinois accounted for nearly 60% of the total foreclosure activity in the first quarter, with 479,516 properties received foreclosure filings in those states.”
The flip side of the Rent/Own conundrum, renters will never have to rachet prices down to try and avoid a foreclosure…and….take the credit hit if they are foreclosed.
I love this place. It has beautiful vintage details, is roomy, and the baths are gorgeous. It seems like a fairly good deal for the money for that neighborhood.
But can it really be called a 3 bed? I thought you could not call a room a bedroom if it has an exterior door in it, which I note one bedroom does. Also, the bedrooms are very small, and these Victorian places tend to lack closet space.
Yes, anon(tfo), it was me. If I had a crystal ball I’d be living in one of these 3MM penthouses, so my predictions are obviously not perfect. Also keep in mind my prediction was made back when the economy was relatively stable vs. post-September period.
Bob, without necessarily unique posting names, I was just curious. No opprobrium from me on that–we’re all just speculating if there’s *one* buyer willing to pay the asking price.
Rent to own never works. It’s a sham concept sold by sellers who cannot sell to renters who cannot qualify for a mortgage.
“Rent to own never works.”
In general, I agree. But, I also think a rent to own structure could work out well for some potential home buyers. I have enough cash for a down payment and a perfect credit score, but I see home values declining for another year or so. A rent to own situation could put me in a strong bargaining position a year down the road. Most sellers are currently in dream land on their ask price. If I enter into a well structured rent to own contract, I can rent for a year, let prices fall, and then renegotiate the exercise price. Worst case is that they say no and I have rented for another year.
With rent to own you pay a higher rent, some of which gets escrowed by the landlord and applied to the downpayment. If you fail to purchase the unit, you lose your down payment. I’d rather just rent and then negotiate a sale price. No need for my landlord to save my downpayment for me.
“With rent to own you pay a higher rent, some of which gets escrowed by the landlord and applied to the downpayment.”
With the rent to owns **you have seen**. There is nothing that requires that as a term of the contract. I doubt MJ would consider a deal with an escrowed down payment of any meaningful size.
You can structure the contract any way you want. The problem is that most people that bought in the last few years with high leverage wouldn’t be able to rent to you at market rent. Their debt service, taxes, HOA, etc would far exceed market rent. However, it might work on somebody who bought at a reasonable basis in the early 2000’s, but hasn’t come to terms on where the market really is.
I doubt a landlord would consider a deal at market rent with any rent-to-own component, unless the purchase price was non-negotiable. Unless, of course, finding tenants becomes so difficult that FB’s will agree to just about anything for some rent.
I think it would be easier to seek a for sale/for rent type seller and just hardball the rent. They won’t be able to sell with your lease in place anyway.
Just hammer them with a low offer when the lease is up if you like the test drive. Don’t forget to remind them how you are content with them subsidizing your housing costs for another year. Heck, remind them with each rent check. Something along the lines of, “Whew, talk about dodging a bullet. Each time I write this check I think how much it could have cost me had I purchased instead.”
“Don’t forget to remind them how you are content with them subsidizing your housing costs for another year. Heck, remind them with each rent check. Something along the lines of, “Whew, talk about dodging a bullet. Each time I write this check I think how much it could have cost me had I purchased instead.””
Yeah, it’s always a good idea to piss off someone you want to do business with. If someone did that to me, I’d start exercising all of my landlord rights under the lease–inspections, asserting damages, etc., right up to the point of violating quiet enjoyment.
Yeah if I was financially benefitting from an FB I would be very nice to them and pay my rent on time. You don’t want to give them any additional motivation (in the form of tenant headaches) to capitulate and mail the keys in if you’re currently renting from them.
Or if you rent to Bob he’ll trash your place and then disappear into the night….
“if you rent to Bob he’ll trash your place and then disappear into the night”
I always took it as more that he would do so if he *owned* the place with a 100%+ mortgage.
Between 2001-2008 nearly anyone who wanted to buy could buy. And they bought, often 1 or more.
The better route right now is the land installment contract to get around the mortgage. Which is kinda interesting because they were in vogue in the 1970’s when interest rates were high, and now again when they are low but no one can get traditional bank financing.
Bob just wants to trash and destroy; what effects does legal title or possession or rent to own matter to Bob? They’re all just pieces of paper in the end. Bob lives there, Bob gets pissed, Bob destroys. It’s as simple as that.
you know i”m just joking around, i’m not being serious
“no one can get traditional bank financing”
If you need $417k or less, anyone who should be able to get a mortgage can. Jumbos are definitely tighter, but “no one” is an absurd overstatement, especially from one who complains about the easy money of the recent past.
You don’t want to make Bob angry. You wouldn’t like Bob when he’s angry.
[pissing off Bob continues]
Bob AAAANGGGRRRRY! Bob SMASH!!!!!
Watch out for the Incredible Bob.
ok so ‘no one’ can get financing is just me posting simultaneous as I”m trying to query events in the 2nd district courthouse in my docketing system –
but no doubt that financing is tight and people who would have qualified as good credit risks 2 years ago are being denied financing today, hence, the land installment contract.
You aren’t too far off base. You should see some of the conditions I’ve left prior apartments when I felt I’ve been wronged by the landlord or apt service company.
When Bob knows he’s leaving soon lets just say there might be extra wear and tear. For instance Bob gets drunk and locks himself out of his bathroom and theres no hole to circumvent the lock with a pin, Bob kicks in door (Bob has to go) and door frame gets destroyed as a result. Oops. Or Bob falls into the tub and destroys the tub faucet (really was an accident, wish I had a pic of the bruise on my back that matched the tub faucet).
Send Bob the bill and Bob will forward it to Bob’s accounts payable department (shredder).
My current landlord won’t have that problem as they are professional and competent and fix crap quickly and don’t do crap like say they gave my new apt a white glove inspection when Bob moves in and its clearly filthy and in need of a professional cleaning.
Or howabout the apartment where there was no shower curtain rail, forcing Bob to goto Ace’s and get a long metal tube and a hacksaw to make one. Well Bob believes in leaving the apartment as it is so the landlord isn’t benefitting from Bob’s custom work. Or the fact that there is no paper towel holder: well Bob might install one but be assured Bob will de-install it on his move out and Bob’s not concerned with patching up drywall holes.
err “as it is” should’ve read “as Bob found it”
Bob is one of many reasons I loathe the idea of being a landlord.
HD,
I know a lot of renters and I consider myself on the kinder end of the renter spectrum. There are much worse tenants than me even if not as malicious, trust me.
Case in point: one day I heard a waterfall in my bathroom and I rushed in to find it. Nothing was overflowing there, but the water noise kept coming. Then I looked up and water was coming down through the ceiling fan and a spot on the walls appeared wet. Realizing it was the apartment above me I ran up there.
It was some skinny tool with an iPhone whose toilet was overflowing. This guy didn’t know how to unclog his toilet nor even how to turn the knob on it to turn it off but said he had called the landlord. I promptly turned the knob turning off his overflowing toilet. Can you imagine how much damage would’ve been done had I not been there?
I couldn’t believe people could exist that could be so stupid but right then and there I realized I would never own property with someone living above me if its not concrete construction.
i know Bob, you’re one of the nicer ones. My fridge is on the fritz and I’m harassing my landlord to fix it. That’s a capital expenditure I’m glad i don’t have to outlay.
Does anyone else think that Bob and homedelete should just go and get married already? “Miserably ever after…”
bob, hd and anon (tfo): have you ever thought of getting together for a beer? you seem to enjoy chatting so much. maybe you could start a book club or something?
my gift to you all this lovely day:
http://lookatthisfuckinghipster.tumblr.com/
We will art. Our first book will be a review of George Soros’ latest book: The New Paradigm for Financial Markets where he outlines how F’d those are who are long real estate.
Paulj welcome back! I presume you must’ve sensed some racist undertones in this thread somewhere, perhaps embedded, or ‘subliminal’ and felt the need to chip in?
OMG PAULJ STOP QUEER BASHING YOU HATER!
/sarcasm off
That is hilarious. I like how they take pictures of people on the subway via cell phone camera. if only my cell phone camera actually worked, it broke a while back. I see dozens of hipsters a day on the blue line. I swear to god they all live in Logan. But supposedly logan’s not even cool enough, now they live in pilsen. Anyone ever been to skylark?
#
skeptic on April 23rd, 2009 at 1:33 pm
my gift to you all this lovely day:
http://lookatthisfuckinghipster.tumblr.com/
“maybe you could start a book club or something?”
If you don’t like the flow of the conversation:
(a) contribute something else, or
(b) skip over it.
http://cache.thephoenix.com/secure/uploadedImages/The_Phoenix/Life/Big_Fat_Whale/WhaleMain(1).jpg
HD, go do doubledoor sometime… my god! At least there are some tatoo-free hotties there, otherwise it would be “instantly commit suicide” level of unbearable.
I don’t trust that Sonies links aren’t NSFW.
But thanks for the link skeptic! I shared it with a blue line friend who is cool (not a hipster although some traits) and he loved it and proceeded to share it with a bonafide hipstergal who now I can only presume wants to stab me with a lunch utensil! LOL!
Maybe this will cause rioting in Uke Village, Humboldt Park, Logan Square and Wicker Park. Although probably just more derision haha.
Its a cartoon, and it is work safe, Bob. Just punch in douchebag hipster into google images and its like the 6th thing that comes up… hope that helps. And I despise going to stupid hipster bars with my friend that isn’t a hipster but lives in wicker park and insists that these bars are awesome when in fact they blow donkey you know what.
Thanks skeptic. What a hoot! The captions are great.
It’s been a year or so since I’ve been to skylark (so long ago that it’s not even cool anymore) but imagine a bar in the 1950’s at 18th and Halsted….now imagine that bar closing down but leaving everything as is, and then reopening open again in 2006. It’s just like that. PBR specials, old furniture, record player for music, terrible lighting, lots of 19 and 20 up through 29 year old hipsters. It’s pretty unique place actually – I haven’t been to any bar quite like it since. I’m sure there are cooler ones now
I mean it’s not all that unique but compared to the 3 types of bars in chicago (irish bars, dives and clubs) it’s a little out of the ordinary.
here is where hipsters fear to tread:
http://www.yelp.com/biz/rays-tap-chicago#hrid:6TnlpWd8hzRP7wYVViYyGQ/src:search/query:ray;s
skeptic,
Do they have a website? 8)
ok.. hipster bar bashing aside (i live in ukie village, lived in wicker park…oh so familiar..) I want to back to what Bob said about not wanting to own when someone above me can be a total moron. We’ve been debating SFH vs Condo, and it’s been tough. We like city living, actually like multi-unit buildings(2-6 units), like having people around, but it’s one thing to rent another to own. We’ve decided instead to buy a 2 or 3-flat with a friend. We’ll do all the serious legal steps, and paperwork, but this seems to be the best deal for us. We may duplex part of it, as we have a rugrat and our friend does not. But this way we still get a small yard, but not so much that we give up our lives for it, and shared maintenance. We’re handy and knowledgeable about maintaining a building, (previous homes,even tenants) and our friend is an architect. Lots of 2flats available on the north/nw side.
skeptic:
The TimeOut review of Ray’s sez:
“Enjoy a $2 can of PBR or Old Style instead.”
Doesn’t sound hipster-unfriendly.
bettieshoe
Not sure you would get the $8,000 govn’t subsidy with a 2 or 3 flat
I would never pay $2 for beer like PBR & Old Style. I am guilty of often paying $8 for an OS 6er but thats at a bar with killer wings and a great younger crowd.
Both of those brands, much like Busch, Ice House and Natural Ice/Light are meant to be drank at home for a cost of ~35c per can. I should know–my fridge is stocked with Ice House (CVS most potent brand).
Seriously within walking distance of this listing you can get $1 beers of higher quality almost any day of the week. No real reason to pay $2 to drink p_sswater.
As far as Ray’s, I think the only reason these bars have novelty to hipsters is because in their upbringing and suburban youth they’ve never seen anything like them. I’ve seen bars like these with the sink whose water drains into the trough with the glass eyed bartender and all. Eventually you realize those places really are sh_tholes (unless its the closest one to your house in which case it is your sh_thole).
dd –
hmmm… i’ll have to look a little deeper into getting that $8k on a 2 or 3 flat. thanks for that.
bettieshoe:
Q. Can I apply for the credit if I bought a vacation home or rental property?
A. No. Vacation homes and rental property do not qualify for this credit.
http://www.irs.gov/newsroom/article/0,,id=187935,00.html
see basic information link
bettieshoe:
Q. I purchased a home that qualifies for the first-time homebuyer credit. I will be renting two of the bedrooms and reporting the rental income on Schedule E. Will I still qualify for the credit if I use the home as my principal residence?
A: Yes, if you meet all first-time homebuyer eligibility requirements. See Form 5405, First-Time Homebuyer Credit, for more details.
You probably need to see a tax attorney, as the interpretation of the tax code seems important. I would not want to risk an audit and then lose the credit
“Doesn’t sound hipster-unfriendly.”
It’s EVERYBODY unfriendly. I think it’s how Ray has institutionalized his alcoholism.
dd:
But o/o two-flat =/= “rental property”, necessarily.
It is weird how from my MLS searches multi-units seem much more reasonable on price than SFH’s or condos. Perhaps this is due to the different target markets.
Multi-units are probably pitched to landlords who look at things like cash flow and consider all in costs like capital expenditures, whereas single units are just pitched to any idiot who sees great “utility” in “owning” with little consideration for rental equivalence.
Rental units generally cost ~100-120k/bedroom and batch. Condo pricing is well above this.
Hey Bob, check this out… LOL!
http://www.youtube.com/watch?v=8wuqefrSZ-A
Work safe, I promise!
“Perhaps this is due to the different target markets.”
Also different lending standards. Can’t get 90% financing for investment properties.
thanks for the additional info dd, those links provide some good info. We’ll definitely be talking to an attorney or two , so we don’t have any tax or other legal surprises.
http://www.redfin.com/IL/Chicago/2523-N-Burling-St-60614/unit-2/home/13167509
Sold for $496,000 in June of 2009. Just listed for $580,000….. Sabrina’s original post has pictures of the “before” which looks remarkably like the “after” — a quick looks says some painting and new light fixtures. I love vintage but time will tell on the wisdom of this listing price.