Live in One and Rent Out the Other: 2552 W. Iowa in West Town
Many buyers are looking for a multi-family house such as this one at 2552 W. Iowa in West Town where they can live in one unit and rent out the other.
The 2-unit house has 4 bedrooms and 2 baths, with each unit having 2 bedrooms and 1 bath each.
It still retains some of its vintage features, including the woodwork. There is also a full, unfinished basement with laundry which is accessible from an internal staircase.
Each unit has separate heat. There is no central air (only window units.)
Gary Lucido at Lucid Realty has the listing. See more pictures and a virtual tour here.
2552 W. Iowa: 4 bedrooms, 2 baths, 2 car garage, 2-units
- Sold in September 1992 for $56,000
- Sold in February 1993 for $97,000
- Sold in February 2002 for $274,000
- Currently listed for $349,850
- Taxes of $3002
- No central air
- Washer/Dryer in the basement
- Unit #1: Rented for $1100
- Unit #2: Owner occupied
- Electric: $900
- Insurance: $1800
- Water: $500
Unfortunately there is no convenient public transportation in this location.
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Cribhater mantra: If you don’t have anything negative to say, don’t say anything at all.
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Those are tumbleweeds, by the way…
What a horrid POS
bradford you suck
Also, I respect Gary Lucido, but I would need to see proof that they are getting $1,100 on the rental.
…aaaaaaaaaaaaaaaaaaaaaaaaaaaaand away we go, right on cue.
LOL.
1st place goes to… the person living anywhere but here!
2nd place goes to… the person renting here!
3rd (and last place) goes to… the person buying this place!!!
It’s rude to rip on Gary’s listing when he’s a regular contributor to this site. MG however is fair game because only lists gold.
I’m just kidding MG isn’t fair game; but seriously, I’ve always refrained from ripping on properties listed by agents who posted here (except once and it was by accident.)
I thought the title said ‘old town’ when I realized that it said west town and realized it was almost a mile to the metra and in a sort of ‘pioneer’ hood west of western I started to doubt that it rents for 1100 a month, since you could rent a similar garden unit in lakeview or LP for that much. But I could be wrong. No disrespect to Gary, but this house is a P.O.S!
You think this place is that bad? Bob could confirm that your chances of getting laid in such a pad are low but so’s the price. How about the hood?
outside of the price, i think it looks good. I grew up in a brick bungalow so maybe I am biased.
You can clearly tell which kitchen is the rental…
Actually I think Gary deserves some kudos for how this is marketed (with the exception of the “excellent location” comment).
I mean, could have made it look any better?
He also does a nice job of honing in a very limited buyer’s market– there are few people out there who want to live in a small 2/2 cottage and have a renter below, but he’s painted the full picture here.
This area though. . . I love actual Uke village, but this far west, it really feels like Humboldt, rather than West Town or Ukie.
So, Jon– a dude got stabbed in the forehead a couple blocks from here last week (yes: stabbed in the forehead); I humbly suggest “dude who got stabbed in the forehead” be considered for third place.
Ahead of the owner of this, that is.
It is different to rip on the realtor than to rip on the listing. This one is a tough sell – that’s all I’m saying (if the comment about ripping on Gary was directed at me).
“So, Jon– a dude got stabbed in the forehead a couple blocks from here last week (yes: stabbed in the forehead); I humbly suggest “dude who got stabbed in the forehead” be considered for third place.”
I can’t imagine getting stabbed in the forehead. I will reassess the rankings and get back to you. Some things that I will still have to weigh against the stabbing are the shared yard situation, the stoves and the black and white kitchen. I’ll get back to you.
The hood’s not bad; I live right near here. It’s not optimal, but I mean, you’re looking at a 2-unit for under $400k. 8-|
Smith Park’s an old mob stronghold so there’s some turf notoriety there, and the Metra railyard is a big buffer stretching all the way from Western to Sacramento, largely preventing the riffraff from down South from migrating North to pillage. Humboldt Park’s violence is generally isolated to the West of the Park or the few streets immediately East of it.
Nice backyard!
That dude got stabbed at 3100 West Walton – not really the same ‘hood.
The neighborhood declines drastically West of California, and it’s a complete lightswitch at Sacramento/Humboldt Drive. WAR ZONE west of there.
lets talk price,
the 2002 price is 275k and we have seen that to sell a place that has not had any major reno since or any unique characteristics is selling at the 2003 prices.
so i ask what is up with the 350k price?
This wouldn’t be my thing, but I think a late 20’s/early 30’s type already living in Ukranian Village/Humbolt Park who knows the ups & downs of the hood (and prob has a band practice space somewhere near) would be better off buying this place than a similarly priced condo.
This wouldn’t be my thing, but I think a late 20’s/early 30’s type already living in Ukrainian Village/Humboldt Park who knows the ups & downs of the hood (and prob has a band practice space somewhere near) would be better off buying this place than a similarly priced condo.
Two small families from one extended family would be a likely scenario in this area too.
Bradford, can you please provide any insight into average rental prices in the neighborhood?
If it was listed for less, I’d say it’s a perfect candidate for a de-conversion into a Single family home. It’s solid brick, old-school construction.
It barely cash-flows as a two flat, given you’ve got almost $400/month as taxes and insurance, on top of the $1600+/mo. mortgage. I’m not thinking you could get $1,000 a mohth rent over there…
Are there dormers on this place?
That’s at best a 5.5 cap at ask. IF you have only 5% v&c loss and minimal repairs/reserves. Oh yeah, and rents don’t decline. That’s managing it yourself with all the joys it entails.
A 7.5 cap would put this around $250,000.
BUT, some fool’s eye’s might open wide at near the ask. Local families likely wouldn’t qualify for loans here anymore. Not anywhere near the ask, anyway. This is close to where I enjoyed that early 90’s to 00’s run, although I considered this too far west (unless south of Chicago in The Patch.) I knew it was time to unload when local c-notes were finally living up to their name through subprime and stated income “business propositions.”
Here’s my math:
(rent x units x mos. x (1-v&c))-tax-ins-water/sewer-repairs/reserves
($1100 x 2 x 12 x .95)-$3002-$1800-$500-$750=$19028
$19028/$349850=5.4%
$19028/7.5%=$254,000
“Insurance: $1800”
Seriously? Is home insurance that much more in a diff. hood? We have the diamond-encrusted insurance and we pay at least 25% less.
I own a 3 flat several blocks west of here and rent similar units for over $1000/mo and haven’t had problems finding renters at that price point.
Multifamily adds. The hood adds too. I certainly haven’t priced multifamily in a while so I went with Gary’s number.
“Multifamily adds. The hood adds too.”
Sure, sure. And I, too, was pulling Gary’s number–just noted it bc you used it. But we’ve seen many here talk abouit big home insurance bills–even in condos–and I know we pay around $1200-1300/year for all-inclusive, high limit coverage and we’ve never shopped it, so I was curious.
I don’t need to run numbers to know that these multi’s in hip hoods are a huge joke. You can now get four flats in Bridgeport for 140k. Which do you think is going to be cash flow positive?
People that want to live in hip hoods need to separate their business interests from their personal preferences. Most people who want to live in multis in hip hoods aren’t experienced or qualified enough to be a landlord (and BTW neither am I but I’m not claiming to).
But some bozo will likely buy this place using some very generous assumptions and assuming they’ll build equity. In reality the value of this place will continue to drop down until it is cash flow positive.
“Multifamily adds”
good point, but i woulndt think multifamily would at 800 a year?
dooode that hood a brick home that size you can get alstate or state farm with good coverage for about 900 a year
I just checked with someone managing dozens of 2-6’s in prime north side hoods who said $1200-1800 is the norm but they differ with many frame bldgs, rear bldgs and bulk discount. Needless to say, much much higher prop values, too. I don’t know if it’s apples to oranges, but $1800 does look high here.
One other thing: bad credit will kill your rates too (not that it’s the case here.) At least that’s what I was told with the last policy I bought (out-of-state, so that might be a difference.)
Good question for Gary.
I checked the listing and can confirm that Gary has insurance at $1800. I also noticed that the property was listed with another agent from May-Aug 2008, first at $409,900 reduced to $399,900 then expired.
“bad credit will kill your rates too … At least that’s what I was told with the last policy I bought”
No, that’s true for all casualty insurance policies I know of.
Of course you guys waited until I left to start commenting. I hung around until 12:30 to see if I needed to defend myself:)
So…there is a tenant on a month to month at $1100. Didn’t take long at all to rent it out.
The insurance cost is from the seller.
Here is the seller’s POV. He can put another $200K into this place, convert it to a SFH with exactly the finishes he likes, and have a back yard and a SFH for about the same amount of money that it would cost him to buy a comparable condo. He likes the neighborhood and the building a lot. The actual structure is in really good shape, having gotten a new roof in about 2003 – complete tearoff with new plywood. It also has new windows and the brick is in really good shape. Some plumbing and electrical has been upgraded.
Show me something decent in this price range in the area. I’ve seen stuff that needs to be torn down at this price.
“was listed with another agent from May-Aug 2008, first at $409,900 reduced to $399,900 ”
It certainly looks better at $350k.
The key to making money as a landlord is having a low cost basis and then paying off the mortgage early. Once the mortgage is paid off the rent becomes pure cash flow; and you get the added benefits of appreciation and of tax depreciation. Everything else (finding tenants, repairs, costs, etc) is just property management and that’s work.
Properties in general haven’t cash flowed in Chicago in years. In the bad neighborhoods you get the Section 8 and those can cash flow but that’s because you have the government paying an above average rent. But with section 8 comes hassle…
Someone on this board once lamented on the poor quality of rentals in Chicago proper…they were old, not updated and of low quality. To which I reply: That’s because the rental stock is old. There hasn’t been much added to rental stock (other than by amateur flippers losing money every month since 2000) because it’s nearly impossible to buy properties that cash flow. So they get old and because rents haven’t gone up (as everyone moved into condos) there’s no incentive to update. Cash flowing properties will give investors more money to update the properties, to make them more competitive in the over saturated rental market…and the consumer will win.
“I also noticed that the property was listed with another agent from May-Aug 2008, first at $409,900 reduced to $399,900 then expired.”
super gary then swooped in and got the sellers to see the light! (almost)
thats why gary will be my agent if i decide to move!!!!!!!!
Who pays 1100 (heat not included) to live in Humboldt Park?
Frank,
Actually, it’s West Town. There was a lot of interest in renting it.
“The western boundary of the West Town community area is Humboldt Park. The 104-block area east of Humboldt Park, west of Western Avenue, and north of Chicago Avenue is commonly referred to as part of Humboldt Park, even though it is not in the Community Area of that name.”
While technically Gary is right this doesn’t seem like prime West Town to me and many refer to it as de facto Humboldt Park.
This place was a joke at 2002 prices and is still a joke today at ask. Good luck finding that greater fool Gary, I suspect your client’s retirement depends on it!
http://en.wikipedia.org/wiki/West_Town,_Chicago
http://www.dreamtown.com/maps/chicago-neighborhood-map.htm
http://www.condosearchers.com/chicago_neighborhoods.html
http://www.chicagoneighborhoods.cc/chicago-neigh-central.html
Based on all the neighborhood maps 2552 W. Iowa is in Humbolt Park.
I spoke to my uncle last night, asked him if he ever heard of or heard anyone say West Town.
He was on the same page as me, in my whole life nobody referred to it a west town. I gave him what west town is considered, he responded “%%^&*%$##% who came up with that %$$**^%^%& its F**king humbolt park”
he is a grumpy OLD man so the swearing was toned down for this website.
Frank,
rents for a two bedroom in humbolt park area are 800-1200 easily. the higher end rent you get big sq ft a shared yard and EASY street parking.
Gary,
one think you have to admit about your profession is that Agents are one of the main causes for 1) these sub-division hood names 2) then confusing the common folk by stretching the boundaries of these names.
There is an official definition of West Town and Humboldt Park and an unofficial definition. Unofficially it may be Humboldt Park but I will tell you with no uncertainty that officially it is West Town: http://lucidrealty.com/west_town.php
According to the MLS it is also West Town.
The 77 neighborhoods are precisely defined as a collection of census tracts. West Town is comprised of the census tracts that begin with a 24 in the 5th and 6th digits – which corresponds to 8024 in the MLS.
Now the sub-neighborhoods are up for grabs.
BTW, according to the tax records this property is in census tract 242600
very true “Unofficially it may be Humboldt Park” life long chicagoans that are not Realtors are stubborn bastardz and will call something by the name the will always call it.
its sears tower and always will be, i have a friend that still refers to millennium park ice skate rink as Skate on State.
I still say “C&NW” instead of Oligvie.
“its sears tower and always will be”
What do you call 200 E Randolph (currently “Aon Center”)?
“What do you call 200 E Randolph (currently “Aon Center”)?”
You mean the Amoco bulding?
“What do you call 200 E Randolph (currently “Aon Center”)”
got me there i call it the Aon not the Standard oil.
but hey i call the smurfit-stone building by it true name “the adventures in babysitting” building
so i guess i have no consistency at all 🙂
The Amaco building
“You mean the Amoco bulding?”
No, I mean Big Stan, the Standard Oil Building.
Big Stan and Big John and, now, Big Will (Sears) and Big Donald. Chicago’s 4 supertalls.
You must mean the Oil Can, The Cock, the Tower, and. . . now, I guess it’s The Donald.
But den I’m probably showing my stripes as havin worked in some seedy professions in da past, der, gice.
P.S. Dying to know what Uncle Groove has to say about “North Center.” Is there a curse word that goes well with “Ravenswood”?
“Big Stan and Big John and, now, Big Will (Sears) and Big Donald. Chicago’s 4 supertalls.”
Those are the lamest names for skyscrapers I have ever heard!
boo
“Those are the lamest names for skyscrapers I have ever heard!”
Hancock and Standard Oil were often (I won’t say “commonly”) refered to as Big John and Big Stan in the years after they were built. You can look it up (as they say).
And Big Stan may be lame, but it’s Standard Oil, not Amoco, if you’re an originalist.
“I guess it’s The Donald.”
And its “spire” looks about as good as his “hair”.
When you have a listing of Wicker Park or Ukrainian Village do you list it as West Town seeing you are using the census map?
http://egov.cityofchicago.org/webportal/COCWebPortal/COC_EDITORIAL/Age_20to64_1.pdf
On the Census map there is no Bucktown, Ukrainian Village or Wicker Park only West Town.
It is Humboldt Park based upon this neighborhood map of Chicago (this is the map most people use to identify a neighborhood and not the census map)
http://egov.cityofchicago.org/webportal/COCWebPortal/COC_EDITORIAL/City_Neighborhoods_8_5x11.pdf
http://egov.cityofchicago.org/webportal/COCWebPortal/COC_EDITORIAL/City_Neighborhoods_11x17.pdf
On the Census map there is no Bucktown, Ukrainian Village or Wicker Park only West Town.
When you have a listing of Wicker Park or Ukrainian Village do you list it as West Town seeing you are using the census map?
The issue becomes when the realtor picks and chooses when to use the neighborhood map and when to use the census map. In this case it is better to use the census map but should the property be in the 2255 w Iowa it wouldn’t be listed as West Town (as based on the census map) but rather it would be listed as located in Ukrainian Village.
“but hey i call the smurfit-stone building by it true name “the adventures in babysitting” building” hahaha, yeah! One of my friends took a lake cruise years ago and was told that the Stone Container Bldg was designed by women (female if you prefer) architects who wanted a ‘non-phallic’ design….. Which is obviously not true, since it was by Epstein…
My parents still say “oh, the building where the Crerar Library was…”
“My parents still say “oh, the building where the Crerar Library was…””
do you still have family members who call the chicago cultural center “the library”?
“One of my friends took a lake cruise years ago and was told that the Stone Container Bldg was designed by women (female if you prefer) architects who wanted a ‘non-phallic’ design”
funny cause i have heard that a few times before, and its easy to believe.
“P.S. Dying to know what Uncle Groove has to say about “North Center.” Is there a curse word that goes well with “Ravenswood”?”
Square D,
oh gosh he would really tear me a new one on that, i will try it out next time i see him. the one that makes him laugh is two weeks ago i explained to him SoPo, i thought he was going to pop a vein or something.
The buyer in 2002 was a moron. Thats the only justification to explain their purchase price in 2002 and their expectation that they’re going to get 350k in this market.
I guess thats why I couldn’t be a Realtor(tm). I couldn’t look at morons with a straight fact and not laugh at them to their face or their idiotic purchase decisions.
At least with stocks and bonds everyone knows they’re speculating. It seems in real estate morons like this buy it thinking RE _always_ goes up and hence its worth 2.8x what it was nine years previously just because a bank was willing to give them a loan.
I want to buy the 1993-2002 owner a beer for making out like a bandit off of an idiot.
“its worth 2.8x what it was nine years previously ”
Enh, that area might have been 2.8x better in ’02 compared to ’93. The house was prob worth about $74k each time, the land just went up 10-fold.
Of course, there was *nothing* to justify the 373% (annualized)appreciation b/t sep-92 and feb-93.
“Of course, there was *nothing* to justify the 373% (annualized)appreciation b/t sep-92 and feb-93.”
Well I think 9/92 purchase was low so that was the reward for being a good land speculator.
And no, I don’t think this area got 2.8x better between ’93 and ’02. I rather think more idiots were given loans in ’02 than ’93.
“do you still have family members who call the chicago cultural center “the library”?”
He… Heck yes, but mostly the one’s that moved away. They have fond memories of studying there has high school students in the early 60’s.
“And no, I don’t think this area got 2.8x better between ‘93 and ‘02.”
Of course you don’t–you hate hipsters more than any other group. Others might disagree. I think the ’02 price was in keeping with pricing east and north of here at the time, with a reasonable adjustment for the lesser location.
You say it was overpriced in 02; I say DUH–it’s RE in a marginal hood sold in 02, of course it was.
“He… Heck yes, but mostly the one’s that moved away. They have fond memories of studying there has high school students in the early 60’s.”
the one that drive me nuts is my family members who had house where the expressway is. and every time driving on it i get to hear “i used to live under here” and that whole long speech about progress and declining values. im close to 40 years old and have heard that my whole life the same thing every time from the same people ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh
I can assure you that this buyer did not buy the place with the expectation that it would appreciate by huge amounts. He wanted a nice place to live and has been very pleased with the purchase. In fact, he’s not even that excited about selling it – only if he gets a price that reflects what it’s worth to him.
That’s one thing that I think is escaping a lot of the skeptics of the real estate market right now. Prices are being supported by sellers who are saying that it’s worth more to them than to a buyer and so they are holding back from selling. You can say they are unrealistic and that there is a shadow inventory out there from this but the fact remains that you need a willing seller to consummate a transaction and without them you don’t have a lower price.
Who will win the showdown between buyers and sellers?
“You can say they are unrealistic and that there is a shadow inventory out there from this but the fact remains that you need a willing seller to consummate a transaction and without them you don’t have a lower price.”
“Of course you don’t–you hate hipsters more than any other group. Others might disagree. ”
I am not an idiot nor a closet racist like most hipsters. Only a true fool would believe the influx of people into a certain area would increase the value by 181% over a decade. And sure enough that fool was there in 2002.
And Gary here is a great read for you and the client:
http://www.amazon.com/Samuel-Beckett-Waiting-Critical-Interpretations/dp/0791097935/ref=sr_1_1?ie=UTF8&s=books&qid=1258662780&sr=8-1
I do hope you prove me wrong on this and feel free to let me know, so feel free to let me know when Godot shows up when it sells.
Oh and with Gary reminding me that his client doesn’t need to sell and there are many people out there like this. This may be true, but it reminds me of a jailhouse analogy.
An arrested person in a holding cell needn’t comply with having their fingerprints taken after their arrest and the jailers will not use force to make them comply. A refusal to comply however will mean they remain in a holding cell with zero chance of being processed or bonded out, or even of getting food if they continue to be uncooperative.
It must be a mystery too who possesses the leverage in the jailer-ares-tee relationship.
“Only a true fool would believe the influx of people into a certain area would increase the value by 181% over a decade.”
There were a LOT of fools in Chicago, then. 3x is nothing; parts of Roscoe Village went up 10-fold+ in under 20 years.
“There were a LOT of fools in Chicago, then. 3x is nothing; parts of Roscoe Village went up 10-fold+ in under 20 years.”
Well that statement enrages me and makes me want to throw my monitor. Seriously WTF is wrong with people? And why is our government bailing out these morons?
Bob, just tell us what block to stay off of.
Roscoe village has changed a lot in the 20 years. The same crowd that today lives in Crystal lake used to live Lakeview and Roscoe Village. I used to date a really really trashy girl who grew up in Roscoe Village and she CONSTANTLY complained that Roscoe Village went to hell when the college educated yuppies took over the ‘hood. She grew up on Levitt or Bell a block north of Roscoe.
“Roscoe village has changed a lot in the 20 years.”
Yep. As has Chicago/Western, tho it’s not nearly *as* changed. This place on leavitt or bell just north of Roscoe would have been sub-$100k in the mid-ish 80s and easily $750k in 05-06.
yeah, but your former girlfriends parents probably made 750% profit on the house they sold in 2003….
“and she CONSTANTLY complained that Roscoe Village went to hell when the college educated yuppies took over the ‘hood. She grew up on Levitt or Bell a block north of Roscoe.”
And yet she (or her parents) likely have more financial sense than them. Do you think the new college educated yuppies, as she calls them, have 20x the income that she or her parents did to afford to own there? I doubt it.
College educated yuppies that are book smart in certain areas but braindead in others drove up land costs by a factor of 20x, yet their average incomes are likely no more than double those people they displaced.
Hmm….I smell funny ponzi math folks when it comes to Roscoe Village home values. Sounds like the yuppies need to pay for what they did and they should. Its only a question of whether our government will let the market adjust to where it needs to go. So far the answer has been “No”. Likely because those college yuppies vote more often than the demographic of your friend. But the fake government support can’t last forever.
I’d rather have a big house in a non-prime hood, then with all the $$$ I’ve saved on the neighborhood being out of hip-ville I could always just rent a studio in RV and claim that as my address if I really wanted the school district for my kids.
New RV owners are a joke and lemmings with far more financial leverage than sense.
“I’d rather have a big house in a non-prime hood, then with all the $$$ I’ve saved on the neighborhood being out of hip-ville I could always just rent a studio in RV and claim that as my address if I really wanted the school district for my kids”
or just pay for private school 🙂
side note; dooode you use boost mobile? does that come with a baby phat jacket and karl kani pants?
“side note; dooode you use boost mobile? does that come with a baby phat jacket and karl kani pants?”
Yeah and I talk like a wigger on my boost phone’s walkie talkie on the El too. Warning to all: DON’T GET BOOST MOBILE IF YOU TEXT MESSAGE.
I was dumb enough to drop $300 on the phone earlier this year for a good monthly plan. As it turns out sometimes the text messages come in late, like hours late, or not at all. Its true you get what you pay for.
dooode,
ebay the phone and at least get cricket. no but seriuosly ebay the phone and go with one of tmobiles unlimited plans they are cheap. we are looking to either stay with verizon and contiune over paying (great coverage for us) or going back to Tmobile to save $$$$$. or both get iPhones (pay a lot with bad coverage). we havent decided yet
Standard Oil Building, Kemper Insurance Building, Congress Expressway, Lake St. El, Crawford Avenue, Presbyterian-St. Lukes Hospital, Taylor Street (don’t you just want to smash in the teeth of jaspers who say “Little Italy?)…….
Remember when the Red Line was called the Howard-Dan Ryan? I still call it that and them youngin’ hipsters look at me like I’m a freak and I’m even that old.
Bob uses Boost mobile?
bahahahahahahaahahaha dude!
IF the text worked as advertised it would be one helluva deal at $46/month unlimited. But it don’t 🙁
bob,
my frugal friend tmobile has unlimited calls and text for 59.99
sprint has any mobile any time with unlimited test and web for 69.99
and laura has cricket and said she loves it its like $40
“Sonies on November 19th, 2009 at 5:39 pm
Bob uses Boost mobile?”
Seriously, that is hilarious.
Forget the rental, make the unfinished basement your band practice room.
Perfect place for a 40-ish guy who would rather put money into an funky pad instead of a Porsche.