Bank Owned 2-Flat in Lakeview for a Bargain Price? 1462 W. Irving Park Road
This 2-flat 1904 greystone at 1462 W. Irving Park Road in Lakeview just came on the market.
It is bank owned.
The building has some of its vintage features intact, such as hardwood floors, fireplaces and built-ins.
There is no central air (window units) but there is a 2-car garage.
Each unit is 3 bedrooms and 1 bath.
From the pictures, it looks like the buyer will have to put some work into the building.
But at this price, is this a deal?
It is far cheaper than any single family home in the area. It is near the Irving Park Brown Line El stop and easily walkable to the Southport Corridor with its shops and restaurants.
Ayoub Rabah at Great Street Properties has the listing. See the pictures here.
1462 W. Irving Park Road: 6 bedrooms, 3 baths, 2 car parking
- There is no original sales information but sometime before 1990
- Bank owned as of October 2009
- Currently listed for $384,900
- Taxes of $10,056
- 2 fireplaces
- Unit #1: 3 bedrooms, 1 bath
- Unit #2: 3 bedrooms, 1 bath
That’s in the ballpark for rental value, but those taxes *really* need to come down.
“The building has some of its vintage features intact, such as hardwood floors, fireplaces and built-ins.”
from the blue bathroom sink it looks like all the “Vintage Features” are still there.
Its a Jason special!
my very rough back of the envelope calcs show that this place would be cash flow neutral with a $75k down payment, without putting a penny into renovations or repairs, and assuming market rental rates. So the only way to make money off this building is to hope that in the future some greater fool will buy the unit for a higher price. At the current listing price the bank is also searching for another greater fool.
Hmm, think I’d like to define the living room from the dining room space. I know! Let’s put in some slide shower doors!
I will give them this: they swept the leaves up in living room between the August & November photos.
Rent-o-meter says the median rent in that neighborhood is around $1,900/mo with most units on Irving Park at $1,400/mo. So, without renovation and assuming you can get the taxes down, cash flow is probably breakeven. Anyone know what actual rents/expenses (like the gas bill) are?
Also, Irving Park is noisy and dirty. I wonder what the original PP was . . .
What’s the best type of financing that could be gotten on a property like this, assuming that its not owner occupied?
the real problem is it’s on Irving Park, on a VERY busy block. you’ve got Lake View high school right down the street, which is not exactly helping either with congestion or property values.
all that said, it looks like a nice DYI fixer-upper – I wonder if the taxes would come down after it gets sold? I’d bet it was assessing at a hell of a lot more than $385K (before all the usual cook county assessor magic, of course).
“So the only way to make money off this building is to hope that in the future some greater fool will buy the unit for a higher price.”
No. If the property breaks even forever (yeah, bad assumption both ways), and you sell it for *exactly the same price* (also a bad assumption) you’ve made $310k in 30 years. Not a princely return, but it *is* a way to make money.
How do you get $310?
“I’d bet it was assessing at a hell of a lot more than $385K ”
The ’09 first pass has it at $846,490. The assessor also thinks it has 3 baths.
It also had the benfit of *both* homeowner and senior exemption. Actual ’08 taxes–$10,489, 2d half (5,461.23) is currently delinquent.
Note that it has the alley entrance to the west, which is a negative.
$564k mortgage–from Jan-08, with LP filed in Jul-08–was the fc’d mortgage. Oldest mortgage with an amount–$125k in 1994. Implying something around 12%/year increase in appraised value.
I couldn’t locate the prior sale, but it has been listed many times:
listed 5/12/1995 $375,000 reduced $359,900 cancelled 9/22/1995
listed 10/1/1995 $359,900 expired 12/31/1995
listed 2/2/1996 $375,000 reduced $325,000 expired 10/30/1996
listed 4/24/1997 $425,000 expired 10/14/1997
listed 10/14/2001 $659,000 expired 12/4/2001
listed 12/6/2001 $659,000 expired 2/5/2002
listed 2/6/2002 $659,000 expired 4/6/2002
listed 5/2/2002 $635,000 reduced $610,000 expired 9/1/2002
listed 7/16/2007 $895,000 reduced $825,000 cancelled 10/19/2007
listed 3/11/2008 $750,000 reduced $543,000 cancelled 11/13/2008
listed 11/14/2008 $543,000 cancelled 3/3/2009
listed 12/9/2009 $384,900 active
I think at least one floor of this place was used as a travel agent’s office for a long time.
“How do you get $310?”
$385 price – $75 dp (provided by you).
Call it $385k if you like. Call it $200k if you like. Say it all (including ALL tax benefits) gets eaten up by maintenance costs. BUT, even there is even $1 left over, you’ve “made money” without needing to find a “greater fool”.
Could you turn this into a pimptastic single family home by investing 500k?
maybe it’s me, but I think the graystones of this era will always hold their value in the long run. you just can’t make something like this anymore.
I saw this, which is near me and was trying to wrap my head around it:
http://www.trulia.com/property/1019063082-3435-W-Parker-Ave-Chicago-IL-60647
double lot worth that much or this person delusional? this isn’t a terrible neighborhood, but it ain’t Lake View.
“Anyone know what actual rents/expenses (like the gas bill) are?”
If you call ComEd and People’s Gas they will give you the monthly average cost of gas and electric for any property. I think they have to by law.
Depending on how helpful the customer service agent is, they might give you specifics month by month. For example it’s helpful to know EXACTLY how much gas and electric is going to run for the month of February when temperatures are low over just getting an average.
This building is not in rentable condition, It’s going to take a lot of time and money to make it halfway decent. Looks like the poor condition goes beyond the cosmetic, with lots of deferred maintenance and systems to catch up on.
Maybe its just because I finished a total rehab of a three-flat, but whoever buys this place better have lots of cash on hand…..
“double lot worth that much or this person delusional? this isn’t a terrible neighborhood, but it ain’t Lake View.”
$100/ft for the structure (assuming reasonable updating thru-out)= $190k. Two lots @ $150k per = $490k. Not *necessarily* delusional, but definitely on the high side. Sold in 98 for $179k–call that $50k/lot and $79k for an outdated house (or some variation). If the reno was reasonbly well-done, should be easily $400k, no?
Also, they paid $575k for it. And have a $460k first and a $86k 2d. So they’re trying to minimize their loss.
“double lot worth that much or this person delusional? this isn’t a terrible neighborhood, but it ain’t Lake View.”
cute skeptic is trying to be a Sabrina 🙂
Skeptic,
I dig the place you posted they did a good job of keeping the vintage and updating the kitchen (wish the would have tried harder for the vintage feel there too).
is it 500k with the double lot, maybe, but it would need a person with $$$ that really want to live in that area for some reason.
if i could sell my double lot for that i would move in a heartbeat!
“if i could sell my double lot for that i would move in a heartbeat!”
What do you think a 2000 SF basic, brans-new house (on a single lot) would sell for on your block? $250?
“What do you think a 2000 SF basic, brans-new house (on a single lot) would sell for on your block? $250?”
it wouldnt sell!!!! 🙁 with all the foreclosures in my area it cant compete. there are boarded up houses around me for a year that are not showing in mls searches yet. my block and the blocks around it are working class families and most of them will buy a “fixer-upper” for a fraction of the new and do the work themselves.
“it wouldnt sell!!!! ”
Dude, that sux. I’m sorry.
ps:
I really meant: how low would it have to be? There’s obviously some price–Would it sell at $150K? $75k?
Make the interior whatever you want to make it sell–call it a Cali-style 2000 SF (but plus a raw basement), with 4 BRs and 3 Ba squeezed in there, but still with “contractor-grade” finishes (i.e., maybe it could be built for $175k or so).
That’s the shadow inventory, my friend. The banks are allowing foreclosures to slowly drip into the marketplace to protect neighborhood values. And it shows some signs that it’s working.
If I didn’t have attorney-client priv I could show you links to foreclosures on the crook county website where the foreclosures have been pending, pending pending with no action for a year, a year and a half, and in some cases, they’ve been dismissed entirely, all the while the homeowner hasn’t made a payment in literally years.
Unless the government plans on bulldozing these properties they’re all going to hit the market in due time, which will keep prices low for a while. Then again, they might bulldoze, they’ve been known to hoard grain and slaughter animals and spoil milk in the GD to artificially keep prices high.
There’s no bottom in sight for this mess.
“Groove77 on December 11th, 2009 at 4:32 pm
“What do you think a 2000 SF basic, brans-new house (on a single lot) would sell for on your block? $250?”
it wouldnt sell!!!! 🙁 with all the foreclosures in my area it cant compete. there are boarded up houses around me for a year that are not showing in mls searches yet. my block and the blocks around it are working class families and most of them will buy a “fixer-upper” for a fraction of the new and do the work themselves.”
Short sales will be the wave of the future. Banks will encourage short sales as opposed to foreclosures once they realize that this loan modification thing isn’t working. The problem of being ‘not able to sell’ will go away when properties when short sales become the accepted way out of an unwanted property. The government has already taken steps to encourage this.
“There’s obviously some price–Would it sell at $150K? $75k”
there is but the trend i noticed around me is whats selling are these rat hole foreclosures for 99k and people are renovating them too! any home in great condition has to compete with that, its hard.
have a great weekend 🙂
Make an offer. It’s bank-owned. If you’re doing your underwriting on Rent-O-Meter.com then you shouldn’t be underwriting properties or attempting to buy them. Canvass the street, play renter, talk to leasing agents, talk to tenants… educate yourselves on how much a basic remodeling job takes to make this rent ready. I don’t care how bad the market is – someone will park their cash in this property and finance it later… you’re not going to get a 10% cash-on-cash return in the Southport Corridor/Graceland. This isn’t a three flat in Englewood. If someone can buy this for $300ish and be all in at $350-$375, I’m finding it hard to believe it’s a bad place to park cash. Oh right, no one has cash anymore…
Before I read the comment about this being a travel agent office, I was already thinking this must have been used as an office. That would explain the glass wall in the living room. Also, no way in hell did someone actually live here with this kitchen and bathrooms in the condition they are in. Both bathrooms and the kitchen would need a complete overhaul before the house would be livable by either an owner or renter.
If it was used as an office, which that glass partition would suggest, then the lot is zoned for commercial. What is the zoning for this place? C3-5? Or could you build a larger multifamily here?
Or, perhaps, this place is attractive as a single family home. I notice that homes have gotten more expensive in this area in the past 20 years and this is a beautiful graystone buildiing, would make a huge, beautiful SF home.
Given its potential, it seems worth the price.
“If it was used as an office, which that glass partition would suggest, then the lot is zoned for commercial.”
Not necessarily. It may have been commercial in the past abnd grandfatehred in when zoning changed. May not be usabale as commerical now (not checking at all).
“this place is attractive as a single family home. I notice that homes have gotten more expensive in this area in the past 20 years and this is a beautiful graystone buildiing, would make a huge, beautiful SF home.”
While generally true, I doubt anyone would want to make the investment to live directly on IPR. If this were on any side street, even just one lot off of IPR, I ‘d agree with you and it would certainly sell pretty easily. As it is, it’s a tough property.
Short sales will be the wave of the future. Banks will encourage short sales as opposed to foreclosures once they realize that this loan modification thing isn’t working. The problem of being ‘not able to sell’ will go away when properties when short sales become the accepted way out of an unwanted property. The government has already taken steps to encourage this.
—————————————————————–
Homedelete, the government has not taken any steps to encourage this.
The banks can sit on these properties forever because the FASB has suspended mark-to-market and the Federal Reserve will take the mortgages from the banks via open market operations (http://www.newyorkfed.org/markets/mbs_faq.html) and give them cash in return. While the Fed program is supposed to last until early 2010, Bernanke has testified to Congress recently that it may be extended (despite public statements saying that it might be ended early!).
Buying property as an investment is a terrible idea right now. Buying a home as a house to live in may or may not be a good idea – everybody has a different situation and needs to do the calculations themselves.
Tipster: wrong! Obama’s admin has taken steps to encourage and streamline short sales. All over the webs. You can easily find the link yourself.
Every day there becomes evidence that Obama’s a frickin idiot. Yeah, lets make it easier for people to default on their homes, get short sales approved, and while we’re at it, screw it, lets have the gov buy it at a steep discount!
really? no one wondered why the government was handing out free lipstick, really?
overall I would say the rent for this would probably be around $1200 at best. Its locating is kind of crap, and places closer to the L in simular buildings rent for around $1200
How dare you speak ill of “The Southport Corridor”!!!
(lol)
How dare you speak ill of “The Southport Corridor”!!!
If everyone would just call it by its proper name–SoPo–then it would all be okay.
SoPo really means sooooooo poor after buying an overpriced POS in a failed attempt to impress you friends and fit in with the Big Ten crowd.