“Armchair Opportunity of a Lifetime” Still Available 19 Months Later: 710 W. Melrose in Lakeview
We last chattered about this 2-flat short sale at 710 W. Melrose in Lakeview which the listing calls a “great investment” way back in January 2009.
See our January 2009 chatter here.
Back then, the listing said the property was the “armchair opportunity of a lifetime.”
The listing hasn’t changed. It still calls this property the “armchair opportunity of a lifetime” and it also says to “hurry”.
The property is still in a short sale but has now been reduced $320,000.
The building consists of 2-units:
- Unit #1: 3 bedrooms, 3 baths, listing says it rents for $3300
- Unit #2: 3 bedrooms, 3 baths, listing says it rents for $3300
The building is new construction with upscale finishes, though the kitchen appliances are missing in at least one of the pictures.
Also, it’s unclear if it’s actually ever rented at these prices.
There is a two car garage and separate utilities for each unit.
When we last chattered about the property, taxes were “only” $3339. Now they are $25,817 and the listing says the “taxes can be appealed.”
The listing says the numbers work. Do they?
Kaloian Kouzmanov at Top Realty Group still has the listing. See the pictures here.
710 W. Melrose: 6 bedrooms, 6 baths, 2-units, both duplexes, 2 car parking
- Old property sold in January 2006 for $700,000
- Lis pendens filed on December 12, 2008
- Was listed in January 2009 as a “short sale” for $1.2 million
- Reduced too many times to list
- Currently listed as a “short sale” for $880,000
- Taxes of $25,817
- Rental income: $79,200
- Lot: 25×102
Looks like the “electric chair” for the current “owner”.
Love that phantom rental income for two vacant units. Love that line “subject to liens”. Love that sloppy masonry work and standard condo interior. No dice; this seems like a severe headache for two “slightly higher than market-price” condos.
This IS a great deal!! Seriously, it is… I know this neighborhood extremely well. The lot, itself is absolutely worth at least 600k itself. I don’t know why homes are so expensive in this area of Lakeview, but they are.
If someone was looking to move to this area, this would be the perfect set up. Live in one unit and rent the other. The rent would likely take care of the taxes and upkeep.
Or, someone could buy the whole bulding and sell one of the units immediately. They could sell either of the units for 400k w/o any difficulty – do the comps.
However, as a pure investment, the numbers make sense but it may not be the best decision. Being an absentee landlord sucks = and then to worry about renters destroying new contsruction is even worse. However, if you could get the building for 750k, the headaches would be worth it.
“The lot, itself is absolutely worth at least 600k itself.”
Are you sure/ any known comps? It’s certainly worth quite a bit, but you’d have to demolish that gargantuan fugmo building for that to matter.
all the young families must be lining up around the block to rent that for $3300/month…right next to the college kids renting for about $1500.
i think i can see the line on google maps.
i’m sure clio sees it.
“it’s a great deal!!…the numbers make sense, but it may not be the best decision”
this may be my favorite quote so far on crib chatter.
3-3.5% cap rate on fictitious rents? more like 2-2.5% in reality? P-A-S-S.
lol, i remember looking at this in 2008.
if you look at it now, i’d be worried about mold (the unit was open to the environment when i saw it)….and hopefully the pipes don’t burst this winter.
“I know this neighborhood extremely well. The lot, itself is absolutely worth at least 600k itself. I don’t know why homes are so expensive in this area of Lakeview, but they are. ”
anyone else see whats wrong in this paragraph/train-of-thought?
“i’d be worried about mold (the unit was open to the environment when i saw it)”
This would be my biggest concern as well, esp in this climate and the fact that it has been unoccupied for so long.
If it is indeed a ‘great deal’ or ‘deal of the lifetime’, why has it been allowed to languish on the market for SO SO SO long?
And if it is such a great investment clio, what are you waiting for? I know you’d be VERY LUCKY to call this your…one of your…Lakeview pied-a-terre!
While I do love the exterior (based strictly on the poor photos) it would not be a good deal for my company (or any renovation company for that matter) to be involved in.
Strange, one of my crew brought this to my attention a few months ago and after consideration, there is no way this would fetch the imaginary rent listed.
My interpretation of the listing says that the asking price for the rentals is $3300 a month, not that they are rented for $3300 a month.
And if they could actually rent them for $3300 a month then there would already be tenants in place, not empty apartments.
There are dozens of 3BR rentals in Lakeview. Take a look at 458 W Briar #2. It’s a vintage building but looks so much better than this place and they are asking $2800 a month. With no takers.
$3300 a month is ridiculous and they will never get it.
It will rent for $3300 a month in 2050 dollars. You just need to get a 50 year interest only mortgage and then pay off the balloon payment in 2060 and you’ll be set for life.
clio, never change
clio you’re a dumbass this is a terrible deal, but since you love pissing away money please go ahead and “scoop this up” so we can all laugh at you and your poor decision making skills.
Despite what everyone is saying, I still think this is a good deal for the right person. I was not flip-flopping when I said, in the same sentence that it was a great deal but may not be the best decision. What I meant was that, by the numbers it IS a good deal – but being a landlord = not a great decision.
Also, there is nothing wrong with my “train of thought” when I said that the lot was worth a minimum of 600k and when I questioned why everything was so expensive. The first was a fact and the second was an opinion.
Thirdly, if the mortgage company is willing to take 650k cash, and everything checked out, I WOULD buy this building in a second!! Any realtor care to follow up?
Check out that little blue victorian right next door – 708 Melrose (east side). It is a short sale and listed for 575k. That is also a great deal – but this property (710 Melrose) is new construction and obviously a better deal. Oh, also check out another tear down on this street: 660 Melrose listed for 1.15million. You guys just might change your mind about this property (710 Melrose)….
$600k for the lot would be over $235/sq ft, just for this UNDER-sized lot.
In fact I’m trying to figure out how there’s room for any liveable square footage, after apparently adding a garage to a 102′ lot.
I agree with others this place makes horrible financial sense.
But maybe I just need to pony up that $3300 and live there for a month to experience the luxury and neighborhood charm.
But it clio, I Triple Dog Dare you!
Buy, even.
“Oh, also check out another tear down on this street: 660 Melrose listed for 1.15million.”
Yeah, I’ve been checking it out. . . for each of the 3.5 YEARS it has been listed. Nice comp!!
“708 Melrose (east side). It is a short sale and listed for 575k.”
Seems like pretty good evidence the lot ain’t worth 600k, my friend.
For the record, I’d take 708 over this P.O.S.
clio I suggest you try driving from marine drive to halsted on Melrose on trash pickup day or at 8am or 4 or 5pm without murdering someone
I can’t back down from a “triple dog dare”…. Seriously, though I WOULD buy it if the bank will take 650k cash. At 650k (or even 700k) it ABSOLUTELY undoubtedly makes sense to buy it (if everything checks out – ie, no liens or major structural/mold problems).
I’m looking forward to next week’s price change.
“clio I suggest you try driving from marine drive to halsted on Melrose on trash pickup day or at 8am or 4 or 5pm without murdering someone”
Yeah – but you are going to get that on almost any side street in the city…. when that happens, just call a friend or meditate. It’s called anger management/time management and stress reduction. Beleive me, I have been required to take several “courses” in this and it actually DOES help!!
“That is also a great deal – but this property (710 Melrose) is new construction and obviously a better deal.”
Would you say a brand new bottom-of-the-line Kia is better than an old & well-maintained Benz, Beamer, Volvo, etc?
I am squarely in the camp that is extremely skeptical that new construction automatically equals high quality.
In many cases these buildings were thrown up so fast they’re actually in worse physical shape than the built-for-the-long-haul buildings torn down to make room for them.
Taxes of $25,817-
That must be the City of Chicago’s new
“Eyesore new construction” tax with a
“Tasteless architecture” clause and a
“Dumb fvck developer” rider
Clio, under those circumstances, I’d buy if for $650 as well. But that is 25% less then the current $880 asking… and we don’t know the structural or legal condition of the place… Like a lot of places, this would be a deal if you’re only paying 75% of the asking price, but does not seem like one to me at the current rate.
I saw this place a while back. 3 major concerns.
(1)
No curb cut for the 2 car garage. Agent told me it had been approve, but that it may have expired? But go look, there is a huge curb there.
(2)
the lower unit entrance is on the left. Walk up those stairs and that door on the last walks right into the lower unit. The entrance for the upper unit is on the East side of the property in a narrow 4ft walkway between the two properties.
(3)
Floor-plan is terrible. main floor has a very small cramped great room. then a bdrm. Thats it. Then 2bdrms up. But I cannot tell you how cramped I thought the great room was.
When I looked at it I thought of making into a SFH, assuming I could get a curb-cut approved??? Not sure how to do this before I own it?
Actually, 500, we are on the same page. I was assuming (probably incorrectly) that the purchase price will be much lower than what they are asking.
Barry, although I don’t mind offering 650k for this place, I have my eye on another great property that I am putting in an offer on this week:
http://www.redfin.com/IL/Chicago/1003-N-La-Salle-Dr-60610/home/14110634
“In fact I’m trying to figure out how there’s room for any liveable square footage, after apparently adding a garage to a 102? lot. ”
There’s no alley. Garage is underneath, w/ a curbcut–isn’t it?
Melrose is extra bad because of the JCC and a school and no alleys to take shortcuts if some dickhead is blocking the (one lane) of this street
“Melrose is extra bad because of the JCC and a school and no alleys to take shortcuts if some dickhead is blocking the (one lane) of this street”
This block is a lot better than the one east of B’way.
Much more saleable as an unfinished SFH than as 2 unfinished condos, I think.
The property at Oak and LaSalle looks interesting… It is in a great spot.
“The property at Oak and LaSalle looks interesting… It is in a great spot”
500 – I saw it first!! Shoot – I knew I shouldn’t have written about it…..
That block of Lasalle is so dirty and dark and gross, trust me I walk my dogs by there all the time and its really wierd that this one block is so neglected. You can’t even tell from street view, but trust me walk in front and you’ll know what i’m talking about.
“That block of Lasalle is so dirty and dark and gross, trust me I walk my dogs by there all the time and its really wierd that this one block is so neglected”
True – but it still is a great location – proximity to GREAT GREAT restaurants/bars/nightlife/excitement/stores, etc. To live in a single family in this location is priceless!!! If you could get 122 W. Oak for 800, put in 700, you would have an extremely nice single family for 1.5 million in a location where single family homes are absolutely 2million+ (even in this “dirty” location).
Where is your parking for 1.5 million?
Barf
“Where is your parking for 1.5 million?
Barf”
Just buy 112 Oak, if it’s still available.
Precisely.
If you want that area, then get 112 Oak.
but…if you don’t mind living on Lasalle (I do), for that price range look at a newly done place on the 1400 N. Lasalle block (2-3 house away from the NW corner of Lasalle and Schiller) as a sample. With a garage built in. The reason I mention this property is there is no way you are going to be able to back your car out onto Lasalle, so whoever lives there put a rotating pad in his garage so he can go head first in and also rotate to go head first out.
And places like this are larger lots.
“so whoever lives there put a rotating pad in his garage so he can go head first in and also rotate to go head first out.”
This is such an expensive and ridiculous way to solve a problem, I love it
What is 112 Oak?
re: rotating pad “This is such an expensive and ridiculous way to solve a problem, I love it”
It is really AWESOME – 179 E LSD has one and is extremely convenient: you just pull in, unload your groceries/bags, have the doorman, turn you around and then go valet around the corner. The actual cost = who knows… The feeling you get = priceless!! It never gets old….
So is it powered or done by hand? I’m imagining a San Francisco cable car turnaround.
He presses a button or lever and it is automated – it is really cool. You guys should check it out.
I’ve walked past this place on Melrose a number of times and every time I do I shake my head. Though it’s not shown in the pictures, there is a two car garage but there is no driveway so good luck getting your car in there. Instead of 2 car garage parking it should say “Plenty of storage”.
Slightly off topic but same neighborhood, do people have opinions on 706 W. Roscoe @ $1.575mm?
http://www.coldwellbankeronline.com/Property/PropertyDetails.aspx?PropertyID=1518296&WT.MC_ID=021810000000000
Seems like a quality renovation but not sure about the price in this location.
Taxes of $25,817-
That must be the City of Chicago’s new
“Eyesore new construction” tax with a
“Tasteless architecture” clause and a
“Dumb fvck developer” rider
lol James!
since this wasn’t mentioned…..
IIRC, this property had multiple workmen’s liens on it.
Nothing like says quality like workmanship half-done or sloppily finished because the sub-contractor found out that he wasn’t getting paid.
Re: automated parking…already done in NY @ One York in Tribeca. Enjoy!
http://www.oneyorkny.com/content/#/4?type=serial&var=
Be sure to check out the penthouse as well…fab!!
I think I know what has doomed this property.
It is the typical new construction with the garage in front. But guess what! No curb cut. I bet this developer started this project without curb cut approval and then could not get it due to some moratorium or something on curb cuts.
This building looks really stupid with the garage in front and no curb cut. And try getting a curb cut? This building is doomed.
Maybe the developer is targeting the niche market of Lakeview residents who also happen to be monster truck owners? I am certainly an enthusiast and if I had the coin for a 900k place like this I think I could get me a Bigfoot too.
“I bet this developer started this project without curb cut approval and then could not get it due to some moratorium or something on curb cuts.”
It appears to be access as of right:
17-2-0402 Access to Off-Street Parking …
“direct street access to off- street parking is allowed in the following cases: 1. when the subject zoning lot lacks access to an improved alley”
but maybe they violated teh setback:
“17-2-0402-B In all R Districts, all parking serving townhouses, detached houses, two-flats and three-flats that is accessed directly from a public street, must have a setback of at least 20 feet from the front property line to prevent obstruction of the sidewalk by parked cars.”
I copied the following from the city’s website it appears they would need approval from the alderman, in this case Tunney. I remember something about a moratorium in the ward to save street spots:
if an applicant is proposing a new driveway, the applicant should expect to wait at least 30 days for issuance. The proposed driveway process requires approval from the Zoning Department and approved field inspections from the Bureau of Electricity, Bureau of Forestry, Department of Water Management and the Department of Transportation.
The application needs approval from the Alderman of the ward in which the property falls within. If the alderman does not reply to the application within 20 days, aldermanic approval is granted by default.
^^ YUP.
I wasn’t going to say it, but KC08 I do believe you nailed it.
I mean, really, if you lived on this block, would you be in favor of a curb cut for this. . . THIS?
Sorry, I need to leave it alone. This place is everything I hate about ELV. . .
It IS an “Opportunity of a Lifetime” as this place is going to be available for sale for seemingly your lifetime.
Bob – the “niche market” for this address would be Boystown and Yuptown. I don’t think either of those demographics are a prime market for “monster trucks.”
I wrote on this property twice. Basically, $1.3M might take this today. Any lower than that and you have to wait until the bank officially takes it over and works out the liens. Should be within next 6 months.
ChiTownGal its not my fault you can’t detect humor (by pointing out the niche market is infinitesimally small or zero).
ATTN Tipster & PermaBear – these units were actually rented at $3500/month EACH. I know because I had the contracts, credit reports and checks in hand but the deals disappeared because the developer couldn’t complete the project and fulfill the lease agreement. The agent listing the short-sale guestimated $3300/month out of thin air and had no basis for those numbers. This is an un-finished project that will require another $50k to complete. And yes, it has been somewhat exposed to the elements over the last couple of years. There were also mechanics liens which no longer apply now that the bank has taken over. You can view detailed interior pics that I took a couple of years ago when the original developer approached me to list these units for rent. With an original loan amount of $1.7m this project was doomed from the start.
“these units were actually rented at $3500/month EACH. I know because I had the contracts, credit reports and checks in hand but the deals disappeared because the developer couldn’t complete the project and fulfill the lease agreement.”
Well if they were actually rented for $3500/month then there would be people living there for some period of time who had paid $3500/month and the landlord received it. Sounds like you meant to say they were almost rented for $3500/month but the deal fell through because its not finished.
sold for 800k 12/2010
sold for 800k in 12/2010
Clio you are an idiot, as demonstrated by your multiple repetitive posts with different timestamps.
bob- just “baiting the troll” – I knew you would come out and play…..