A 1-Bedroom Under $100,000 in the Gold Coast: 1419 N. State Parkway
This 1-bedroom condo just came on the market in the low rise building at 1419 N. State Parkway in the Gold Coast and is listed for just $95,950.
Yes, it is bank owned.
It is the cheapest unit for sale in the building (out of 3 units currently available) which was built in 1967.
The unit is listed for $64,050 under the 2003 purchase price and $21,550 under the 2000 purchase price.
It appears from the pictures that some of the kitchen appliances are intact as there is a white oven and microwave visible. There also appears to be granite counter tops.
There are hardwood floors in the living/dining room.
There is no central air, just wall units.
Is this a deal given the location?
Coya Smith at Smith Partners & Associates has the listing. See the pictures here.
Unit #302: 1 bedroom, 1 bath, no square footage listed
- Sold in April 2000 for $117,500
- Sold in October 2003 for $160,000
- Originally listed in September 2009
- Listed in February 2010 for $158,900
- Reduced several times
- Lis pendens foreclosure filed in January 2010
- Bank owned in October 2010
- Currently listed for $95,950
- Assessments of $439 a month (includes cable)
- Taxes of $2218
- No central air- wall units
- No washer/dryer in the unit
- No parking
- Bedroom: 10×10
- Living room: 18×13
- Dining room: 13×6
- Kitchen: 7×8
With $624 in assessments and taxes a month, does this price meet own/rent parity to buy and then lease it out? It is awfully blah, albeit in a very good ‘hood.
Also, do the cc’ers think it is ok to steal appliances and fixtures if your place is getting foreclosed on? Would some even think its ok to steal copper wiring and pipes? What about doing the California trash of throwing p*** and sh*t all over the walls?
How much would the bank have to pay you in order for you to leave the place in good condition?
No, don’t steal anything, classless
Overall, ok price for blah condo. With a coat of paint, small scale furniture, toss in some cheap SS app, drapes/nice window treatments, etc, it could be relisted for 150K
How much would the bank have to pay you in order for you to leave the place in good condition”
This is the problem with most people’s thinking (not you Mike) – but, as a society, we shouldn’t be asking this type of question but should be asking how we can punish people that deface foreclosed properties. This is what happens when you let people get away with bad behavior.
“This is the problem with most people’s thinking (not you Mike) – but, as a society, we shouldn’t be asking this type of question but should be asking how we can punish people that deface foreclosed properties.”
I couldn’t agree more Clio. I was playing Devil’s advocate. But let’s not fool anyone, a lot of the properties that are foreclosures on cribchatter are missing appliances and other things. I wish more banks would go after these people that do this. It ruines a habitable property for someone else to make as a home.
Actually, stealing fixtures and mechanical elements from a foreclosed property is considered to be theft. There’s just so much of it happening and so many foreclosures to process that the lenders don’t begin to have the resources and time to go after people who strip and vandalize their places when they’re foreclosed. The lenders have enough on their hands just foreclosing, they are so backlogged, which is why the average non-paying home debtor gets to squat for a year at least in default before he or she receives a NOD.
Beats me why anyone being foreclosed would want to render his property worth still less, because IL is a recourse state and you can at least theoretically be held liable for the deficiency if your place sells for less than the amount of the loan. You also get to keep the profit if the place sells for more than the loan balance + costs, but that’s not too likely right now.
Could add that sometimes the foreclosure “victim” is doing a future buyer a favor by, say, stripping out the kitchen or bathroom. The stuff rehabbers installed in a lot of the places I’m looking at is so sad, I’d rather someone had stripped it out and left me with a clean slate while I get a discount off the price for the lack.
I don’t understand this :
If a contractor signs a contract with a homeowner, and walks off of the job, that contractor can be held liable and even can be charged criminally but if a homeowner signs a contract with a bank and walks out, that homeowner gets off scott-free?!!!! That is ridiculous.
umm besides it being japan sized and rental quality
WTF on the ass fee!!!!!!!!!! no i am serious WTF on that ass fee!!!!!!!
this like a 500sqft apartment and it will not take $200 bucks a month to heat even if january is only 3degrees out the hole time.
Yes Laura
While you may prefer a stripped out kitchen and bath, most buyers would prefer to get conventional financing, which is not possible if unit is uninhabitable.
“Overall, ok price for blah condo. With a coat of paint, small scale furniture, toss in some cheap SS app, drapes/nice window treatments, etc, it could be relisted for 150K”
Really?
Unit #601 has been staged with some nice smaller furniture and new carpet. It’s listed at $124k (doesn’t look like it has stainless though.)
It does have an assessment of $570 a month though.
http://www.coldwellbankeronline.com/ID/1663005
“this like a 500sqft apartment and it will not take $200 bucks a month to heat”
My bill received yesterday was well under $200.
sabrina you do know that is “Digital” staging right?
but a darn neat trick i wonder what it costs to do as i think it can be a great marketing tool for agents.
clio i got an idea for a start up, you down for the capital?
Clio: “If a contractor signs a contract with a homeowner, and walks off of the job, that contractor can be held liable and even can be charged criminally but if a homeowner signs a contract with a bank and walks out, that homeowner gets off scott-free?!!!!”
Laura already explained why your above statement doesn’t make sense: “…IL is a recourse state and you can at least theoretically be held liable for the deficiency if your place sells for less than the amount of the loan. You also get to keep the profit if the place sells for more than the loan balance + costs, but that’s not too likely right now.”
As I said last time this issue is brought up: they don’t get off scott free. The “homeowner” signed a contract and the contract stipulates penalties and/or recourse for breaking the terms. Now if the “homeowner” files for bankruptcy protection, it may make it hard (or impossible) for the bank to recover that money. Note, however, that is two way street: I’m still waiting for the $250 that Covad owed me in 2001 when they filed for bankruptcy (I’ve been holding my breath ever since).
Also (though it should be completely clear): this isn’t a criminal issue, it is a civil issue.
Sabrina,
Great point. That unit is cute. I guess most people in this price range cannot afford the monthly asses.
Mike HG: I don’t know the laws about taking appliances and defacing the properties, but it would seem like a pretty clear cut case of taking/ruining property that is not theirs to me. As Laura said, I can’t imagine banks have the time or resources to go after the offenders, though. They barely seem interested in going after money owed to them by people walking away or simply not paying their mortgage.
I’m pretty interested in that point, actually: ARE banks going after the folks that walk away or stop paying? At what rate? I could see at some point that the cost associated with the process would outweigh the money they could retrieve, but I’d be interested to know what that point was…
“sabrina you do know that is “Digital” staging right?”
ha! ha! You’re right! I didn’t look at it very closely. That is fake furniture in those pictures.
This is a great tool. But, of course, it would be a real letdown when you actually went to look at the property and there was no furniture or anything.
But some people buy property sight unseen- so why not try this if all they’re doing is looking at it on the internet?
the association fees aren’t that crazy given the age of this unit..I live a few blocks away on goethe , and if i recall correctly , for my 1 bedroom my landlord is paying nearly 700 bucks per month…i dont know how he will manage to sell it with those fees + taxes.
I know this building well. Habe been in it many times. This is a deal. Heat is included. If you could get this in the 85k range it makes great sense. Should rent for $900 a month.
This unit looks slightly larger than a prison cell.
i am i missing something
314 + 439 = 753 – 900 = 147 mo/ cash flow w/o vacancies.
not the screaming deal i would hope for esp. given the high fixed monthly costs.
i would say 50K is more of a workable deal.
“#
dowjones on January 7th, 2011 at 8:59 am
I know this building well. Habe been in it many times. This is a deal. Heat is included. If you could get this in the 85k range it makes great sense. Should rent for $900 a month.
“
$50k in the gold coast? the gold coast is the midwest’s upper west side. real estate should never be this cheap.
“But some people buy property sight unseen- so why not try this if all they’re doing is looking at it on the internet?”
sabrina you in for another internet venture? you do the website, i got a grafic designer friend out of work, clio provides the cash, i run the books.
its a win win win
Reference the purchase contract with the bank-contract stipulates if you default, bank gets the property and penalties. There is no “morality” clause in the contract, the borrower does not walk away scott-free.
Trashing the place is criminal. Walking off with washer, dryer, refrigerator or any other item the borrower paid for, separate from the mortgage, is OK by me. Does not include a furnace, copper plumbing, electrical, etc.
Even given the not so – impressive interior, I’d think this would rent for more than 900, right? it’s a bit of a shoebox but a desirable neighborhood, 900 is more like studio territory in my opinion.
I second Riz. I would have thought this would go for more then 900- maybe 1000 or 1100?
I just remembered how people get away with stealing appliances fixtures and copper wire and pipe. They claim that when they left the place was fine but the whole neighborhood knew they were moving due to foreclosure so it was a free for all the night they moved with the neighbors racing to steal as much as they could from the house. In reality the owners steal it and sell it on craigslist or at the weekend flea market. Read that on the intertube a few months back.
About the appliances are we talking the stuff that really should be there or the extras like say, at some point you installed a trash compactor you paid for in cash or a heriloom chandelier – would those things be ok to take with?
“i am i missing something
314”
I’m missing where you got 314. Monthly taxes (assuming no change–HA!) are $184.
“They claim that when they left the place was fine but the whole neighborhood knew they were moving due to foreclosure so it was a free for all the night they moved with the neighbors racing to steal as much as they could from the house.”
Well Mike HG, you hit the nail on the head. I’m sure both instances exist. How do you figure out what really happened? And in the case of run-of-the-mill appliances, is it worth it? compared to the cost of the houes, it’s like going after the bank robber for also stealing a pen from the clerk’s desk.
And as roscoevillager points out, what if you upgraded the appliances after you moved in?
this would rent for 1200-1300/month
Clio: “If a contractor signs a contract with a homeowner, and walks off of the job, that contractor can be held liable and even can be charged criminally but if a homeowner signs a contract with a bank and walks out, that homeowner gets off scott-free?!!!!”
If a Developer decides he’s hemeraging too much cash with no chance of breaking even or ROI, he can dissolve his partnership and leave the condo association left footing the bill.
how many realtards told buyers during the bubble “if you lose your job or need to re-locate, you can always sell for at least what you paid”
I’d like to see some of those two groups be held more accountable for their actions before going after someone for stealing lighting fixtures.
Home for HD. I know it doesn’t look that great, but it’s in bucktown and someone is apparently willing to pay $2200 a month to live there.
http://www.redfin.com/IL/Chicago/2346-W-Dickens-Ave-60647/home/17359296
Hey on a property like this would you be able to get Financing on it, if you could the financials would work out rather nicely.
the facade of that building…what to say…i feel like it could be a listing in Beirut.
This is a better deal. No mortgage and kept up well over the years. Price completely reasonably.
http://www.redfin.com/IL/Chicago/4862-W-Warner-Ave-60641/home/13477477
I think ~ 1200 is right for rental on this place. The less updated units in my building go for about 1300-1400 and are a bit nicer on a better block, I think. Beyond 1200 would be tough to rent. Still not a bad deal for ~85 in my opinion..But it’s a truly ugly building.
“I just remembered how people get away with stealing appliances fixtures and copper wire and pipe. ”
Non-built-in appliance (ie, typical refrigerators and stoves, washers and dryers) are *not* fixtures and in some parts of the country/world are typically not included with the sale. So that stuff I can understand. Basically, if you need a hammer/prybar to get it out, then it’s damage/theft, otherwise it’s difference of defining personal property.
HD, I’ve seen that house. It has good bones but it bordered by an apartment building that looks directly into your yard and windows. plus the burger king across the street and the busy Milwaukee avenue make this a little bit undesireable for me. Put it a few blocks closer to Portage Park and maybe I’d buy it though.
“Home for HD. I know it doesn’t look that great, but it’s in bucktown and someone is apparently willing to pay $2200 a month to live there.”
That, at ask with that somewhat plausible cashflow, is a 5.25 cap, which ain’t enough for an investment property in a flat market, even at current interest rates. If it’s in basically perfect condition, it’s right about rentsaver for that amount of rent.
“This is a better deal. No mortgage and kept up well over the years. Price completely reasonably. ”
That’ll sell this week, won’t it? Wonder if there are any hidden defects in addition to the tragic add-on to an add-on in the back.
People trash the place because it is a way to get back at the bank. A lot of foreclosure “victims” feel it is the banks fault they are having financial trouble because the banks (banks servicing company) won’t make any effort whatsoever to work with them until they get back on their feet. Trashing the place is the only way a borrower can say “F You” and have it actually hurt the soul less bank.
I saw a pre-screening of a movie called The Interrupters. Really good.. done by the guy who did Hoop Dreams. It is documentary about the anti-gang group called CeaseFire. I’m sure you have seen the bumper stickers and billboards before. Long story, short one of the little thugs they follow around in the movie is living in a 2 flat foreclosure. The guy literally just squatted in the place and took it over like it was his.
I have a client who got a property for free from Citibank. They had a $100,000 or so lien on the property and they sua sponte released their lien, recorded it and sent it to him in the mail. Citibank didn’t want to deal with the taxes, the legal bills to foreclosure, and presumably, the city of chicago building code violations that kept coming up. and the tenants who were squatting and hadn’t paid rent in a few years. I have a copy of the release of lien.
Of course a few weeks later some random collection agency started sending him letters saying “we now own the right to collect $100,000 from you for this debt, please send payment to: ”
Pretty funny actually. But who wants to own a dilapidated 2-flat in Pullman, even if it were free.
screw the bank and the appliances,
WHAT THE HECK IS THE DEAL WITH THAT ASS FEE ON A 400sqft PLACE?
Groove,
high ass. fees in 1970’s era condos are commonplace in the gold coast, sadly.
If the lis pendens was filed in January and it is listed as bank owned in October soes that mean the foreclosure process took less than 1 year???
“Groove,
high ass. fees in 1970’s era condos are commonplace in the gold coast, sadly.”
i would expect that on pre-war buildings but a 70’s one, ouch i cant swallow that. my buddy pays $500 on a 60 or 70’s building with a lake view just north of foster.
“If the lis pendens was filed in January and it is listed as bank owned in October soes that mean the foreclosure process took less than 1 year???”
Could have been a deed in lieu.
4-Plus-1-style condos are hideous. I’d never trust them, especially since they are more prone to sound sensitivity between floors and ceilings.
Third floor is risky. It may have more solid concrete — or maybe added it when it went condo (doubtful) but this style construction is usually NOT conducive to hw flrs (built with carpet in mind) and noise is more regular.
Good luck on selling this thing. Blah.
good catch, anon, i actually forgot about the taxes i just used a mortgage amount [85K (15-17K down)) as a substitute for opportunity cost of cash
1200 rent would make it easier from the investment side.
”
“i am i missing something
314?
I’m missing where you got 314. Monthly taxes (assuming no change–HA!) are $184.
“
I like that they have not yet canceled the old listing at $109.9:
http://www.redfin.com/IL/Chicago/1419-N-State-Pkwy-60610/unit-502/home/14125930/mred-07454248
Click it while it’s hot.
“1200 rent would make it easier from the investment side.”
Yeah, if the association is solid, the unit has minimal deferred maintenance and market rental value is a realistic 1200, then it’s a decent (but not no-brainer) investment prop at $96k.
I have such a similar unit in a better builing, better view, nicer unit and I am renting it for 900
“Click it while it’s hot.”
i clicked and it was hot there is a pic #3 if you look behind the lamp you can see the ceiling actually leaking something!
Yes- you are missing something. Park your cash there. Not worth a mortaqe. Will easy cash flor $350 a month.
revassal on January 7th, 2011 at 9:07 am
i am i missing something
314 + 439 = 753 – 900 = 147 mo/ cash flow w/o vacancies.
not the screaming deal i would hope for esp. given the high fixed monthly costs.
i would say 50K is more of a workable deal.
Instead of this I would just pick up two micro studios over at the flats, the cash flow would be better.
Flats location does not compare…
what do you call this type of hideous building a 10+2?
bleeeech
Only in Chicago and a few other select metros do run down dorm rooms go for six figures. We’ll see what this closes at.
no doubt if you don’t do your due diligence be prepared to be screwed
”
Yeah, if the association is solid, the unit has minimal deferred maintenance and market rental value is a realistic 1200, then it’s a decent (but not no-brainer) investment prop at $96k.
”
429 A + 184 T + Vacancies not equal to 350 cash flow @ 900
cash does cost something
”
Yes- you are missing something. Park your cash there. Not worth a mortaqe. Will easy cash flor $350 a month.
“
Cash does cost something: Cd rates are 1% so i’ll take my chances on appreciation.
$900 includes average vacancy of 1 month. Rent it for $1,000. Cash flow ++
the place is dumpy, has no parking, is dark,and has no AC. It is also 2 blocks to the beach and 4 to Mag Mile. It is selling for the cost of a private parking spot. decent deal (although my car will not fit in it)
no doubt if you don’t do your due diligence be prepared to be screwed
”
Yeah, if the association is solid, the unit has minimal deferred maintenance and market rental value is a realistic 1200, then it’s a decent (but not no-brainer) investment prop at $96k.
”
429 A + 184 T + Vacancies not equal to 350 cash flow @ 900
cash does cost something
HD – I saw the warner place (like 3 times) a while back. Just didn;t do it. Icarus is on target abou the building next door (but it is condo). The bathrooms are atrocious and there are some serious HVAC issues here. The floors in some rooms are like swiss cheese with old and new air returns etc. I also noticed some issues (Like the house not actually resting on support columns) when I was in the basement. Overall, they have painted since I have seen it and it looks like they have improved the appearance darmatically.
“screw the bank and the appliances,
WHAT THE HECK IS THE DEAL WITH THAT ASS FEE ON A 400sqft PLACE?”
I live in a similar building in the gold coast where fees are pretty high. Just looked at our 2011 budget. Although they eat up some of the budget, it’s not the utilities that are driving up the fees. The constant maintenance and upkeep for an older building drive up the fees also. But it is primarily payroll and benefits that result in the biggest expenditures. From the multiple doorman, to multiple working shifts of maintenance men, to the live in engineer, to the management company they all get salary and union benefits. Personally I don’t care if the hallways are vacumed every night, the trash emptied and a doorman guarding the entrances 24/7, but apparently enough people in my building do. I think most high rise buildings in the gold coast are the same. Just the cost of living here.