Bank Owned Albany Park 2-Flat Under the 1990 Price: 3011 W. Ainslie
This bank owned 2-flat at 3011 W. Ainslie in Albany Park came on the market in early January and has already been reduced once.
The brick property was built in 1921 and consists of two units.
- Unit #1: 2 bedrooms, 1 bath
- Unit #2: 2 bedrooms, 1 bath
There is a 2-car garage and a finished basement.
There doesn’t appear to be any central air.
The 2-flat is just steps from Ronan Park and the Chicago River.
It is also listed $24,100 under the 1990 purchase price.
Is this a steal?
Egle Vasiliauskiene at Amber Realty has the listing. See some pictures, including the interiors, here.
3011 W. Ainslie: 4 bedrooms, 3 baths, 2 car garage
- Sold in January 1990 for $244,000
- Sold in August 1995 for $236,000
- Sold in February 2007 for $455,000
- Lis pendens filed in March 2008
- Bank owned in November 2008 (for those of you wondering where the “shadow inventory” is- notice that it took this bank owned unit 14 months to return to the market)
- Originally listed in early January 2010 for $241,900
- Reduced
- Currently listed at $219,900
- Taxes of $6509
- No central air
I like it. Seems like a good deal. I just have a question about the taxes. Is $6509 standard for a 2-flat in Albany Park? It seems high…
I find the combination of ‘sold as is’ and ‘2 year home warrenty’ very interesting, not to mention contradictory. From the limit, both in number and in what they show, pictures it looks like this place is not wrecked. Renting out one unit and the ‘finished’ basement unit could cover most of the mortgage. I’m confident the taxes could also get reduced.
This would be a great oppertunity for an owner occupied senario. A 203k FHA rehab loan could be used to make needed repairs, add AC, rehab the kitchen, possible duplex unit 1 into the basement. They could also try to rectify the basement and turn it into a confroming unit-though from my understanding that is really, really diffucult-permit & zoning wise-which is why noone bothers and just rents out the illegal/non-conforming basement unit.
Even as is-or with minor improvement- I think you could get $1000 each for the 2/1’s and $600ish for the basement (I’m assuming a 1/1, with decent ceiling heights and decent condition). $2600 more than covers PITI. What the back-of-the-envelope calc for income props??
The 2007 purchase price is obscene.
Plenty of idjits bought 2-flats during the boom with absolutely no concept of cash flow or how to cover rent.
I’m still undecided whether this is a ‘deal’ for an investor in an o/o situation. I know that I would not want to be the o/o living in the same building as my tenants.
My initial thoughts are that $1,000 rent might be a little high, probably more like $900 or $850 in that neighborhood.
Taxes at $541 a month are ridiculous. Sure, it can be appealed and probably lowered a bit but that takes time, plenty of time, and it isn’t a sure thing.
You also have to count on some vacancy. The rental market for landlords is very tough right now and like somebody in a previous post said, his units used to rent for $2,000 and today they’re renting for $1,700 and they’re the best in his neighborhood.
Like I said, I’m undecided. I’d like to hear some other people’s opinions before making a decision one way or the other.
Did this one hit the perfecta in 2008: underwater both figuratively and literally?
Youtube “Albany Park flood” or “North Park flood.”
I told you the story of the guy who bought a $500k 2-flat in roger’s in 2006 and he said his mortgage was $300,000 a month. he said he rented out two units at $1,000 a piece for a total of $2,000, obviously not enough to cover the mortgage. I didn’t bother asking why he did that, he was already in my office so he knew he had problems. Of course it’s in foreclosure still stick in mortgage foreclosure purgatory.
sorry $3,000 a month. not $300,000!
beware the mold monster, and your neighbors here…
Although I don’t know much about the neighborhood, this one looks like it is getting close to a decent investment opportunity. Assuming you can get the taxes reduced (which is difficult in a corrupt and bankrupt city) $200K probably makes sense. Basic back of envelope using $900 rents, downtime of 1 month per unit per year, taxes of $4,000 (it’s all about the connections), turnover costs of $500 per unit per year, and 7% cap, you get +-200K. Also produces 9% cash return which is pretty good for this type of product. I also gave no income to the basement, so maybe you could pay the ask.
whats with the taxes batman?
good point Sabrina on the shadow inventory. 14 months to hit the market, wonder if the flood gates will open on that or banks will keep trying the trickle theory?
What’s the neighbood like anyway?
Look in CCRD at the name of the foreclosured owner and that will tell you what you need to know about the neighborhood which is why i’m skeptical of $1000 rents and full occupancy.
” I know that I would not want to be the o/o living in the same building as my tenants. ”
Its not for everyone. I personally like the arrangement. Its all a matter of due dilegence and finding great tenants. I’ve found that advertising a place as in an owner occupied building bring people who also see it as a benefit. A landlord is more likely to keep the property tidy, showel the sidewalk quicker, etc. if he actually lives in the building.
It also keeps the scumbags away that like to be loud, dirty, etc.
Albany Park is not in the green zone… by a longshot
Instead of an income property does this price or $200K, make it more marketable for conversion to a single unit (aka single family)?
I know that it can be pricey to do all the way, but conversion can certainly be done economically – just open the stairs to the first floor, remove the upstairs kitchen, add/remove a couple partition wals, etc.
MJ,
Its a bit umm rough in spots. nicer towards foster then its northpark college feel, lawerence and kedzie is not pretty. River park is “here and there” and has gotten better.
for me i would not want to owner occupy but thats me.
fun fact, the groove used to practice his break dance moves behind the laundry mat on kedzie right donw the street on cardboard in the parking lot 🙂
“What’s the neighbood like anyway?”
This block really isn’t bad, you could easily attract North Park-affiliated tenants. Key concern is the flooding potential.
Close enough to the river to smell the effluent, too, no? The water treatment outlet is *almost* directly across the river.
Remember the conversation a few years ago, “The river doesn’t smell, homedelete is an idiot”?
Yeah, I’ll never forget that conversation, or the smell from the river.
“#anon (tfo) on January 29th, 2010 at 10:57 am
Close enough to the river to smell the effluent, too, no? The water treatment outlet is *almost* directly across the river.”
“Remember the conversation a few years ago, “The river doesn’t smell, homedelete is an idiot”?”
The river doesn’t smell–from street level–around riverbend. It certainly does smell at 4900 North, directly in front of the treated sewage outlet. Have you been in a canoe/kayak on the river in the past 5 years?
Probably 1 furnance too. Which means your covering heating gas for both units.
I think $900 per month is probably what they’d rent for.
The Taxes seem high but maybe the lot is big.
Std Chicago Lot. Taxes are high. Im paying about $6500 on a double lot 2 flat in Jeff Park.
“Std Chicago Lot. Taxes are high. Im paying about $6500 on a double lot 2 flat in Jeff Park”
appeal that!!! i am on a double lot and paying half that. given i am south of you but still half.
“Have you been in a canoe/kayak on the river in the past 5 years?”
I’ve done it several years, and yeah, it smells pretty bad until you get down around Merchandise Mart. Not raw sewage bad, but bad.
Groove, you’re paying $3250 on a friggin double lot? Where the hell are you? We’re paying $6300 for a double lot in Avondale.
“Groove, you’re paying $3250 on a friggin double lot? Where the hell are you? We’re paying $6300 for a double lot in Avondale.”
Assessor probably thinks Groove’s house is 750 SF.
The land is assessed as a small fraction of the improvements. My single lot is ~15% of my total assessment.
No but I’ve mountain and road biked the north branch trail and I’ve driven, biked and walked over many bridges up and down the river and the north branch. It’s stinky. Some days are better than others. Some days don’t smell, some days stink to high heaven.
“Have you been in a canoe/kayak on the river in the past 5 years?”
“No but I’ve mountain and road biked the north branch trail and I’ve driven, biked and walked over many bridges up and down the river and the north branch. It’s stinky. Some days are better than others. Some days don’t smell, some days stink to high heaven.”
And it’s locational, too, as Skeptic noted. As I recall (no research) the argument was about the smell south of Chicago, north of the bend. It’s pretty neutral there, most of the time.
“Assessor probably thinks Groove’s house is 750 SF.”
yep anon you super genius, the assessor has me around 900sf.
“Groove, you’re paying $3250 on a friggin double lot? Where the hell are you? We’re paying $6300 for a double lot in Avondale.”
i am over by riis park and taxes for me are more than $3200 but not that much more.
“yep anon you super genius, the assessor has me around 900sf.”
So your assessment breakdown is ~40% lot, 60% improvements, right? I’d wager that your land assessment is w/in 15% of skpetic’s and gocubs’s.
Riis park is pretty far west (Narragansett, right?), that explains a lot, is my guess.
regarding the river, the reason it smells better at the Mart is it more closely resembles lakewater – I’ve paddled from Navy Pier all the way to Foster, and it smells pretty bad around Goose Island all the way north – it does start incrementally better once you get north of the tanning factory at Armitage (which seems to be allowed to still dump directly into the river, yuk), but it’s bad the whole route. part of that is just that it doesn’t have much of a current to it, but keep in mind that even the canoe rental places warn you to be careful and not get the water on exposed skin. that can’t be good.
“So your assessment breakdown is ~40% lot, 60% improvements, right? I’d wager that your land assessment is w/in 15% of skpetic’s and gocubs’s.”
the actual break down last time i checked is close, its 37% land i think
“it does start incrementally better once you get north of the tanning factory at Armitage ”
There’s a water treatment outlet just south of Webster. The tannery closed in 2006.
“The tannery closed in 2006”
I think you’re mistaken, Horween is still in operation. They’re the only place in the USA that still makes Shell Cordovan.
“I think you’re mistaken, Horween is still in operation.”
Oops. The *other* tannery near there closed. But Horween isn’t directly on the river, is it?
Check the flooding issue here, proximity to river and sewer backup.
Easy enough to do — just ask a couple of neighbors how they fared in 2008. If it didn’t flood then it never will.
“Check the flooding issue here, proximity to river and sewer backup.”
Easy enough to do — just ask a couple of neighbors how they fared in 2008. If it didn’t flood then it never will.
Lawrence and Foster flooded, FEMA included this area as a flood zone a week before the flood (you now need flood insurance), many, many basements flooded….
Groove77 on January 29th, 2010 at 3:35 pm
“So your assessment breakdown is ~40% lot, 60% improvements, right? I’d wager that your land assessment is w/in 15% of skpetic’s and gocubs’s.”
the actual break down last time i checked is close, its 37% land i think
Im about 25% for the lot if I recall. They have like a std assessed value of $10K per 50FT lot all over Jefferson Township which is total BS. Jefferson Township can completely vary by 1/4 mile in value.
I appealed it and may get a Lawyer if the appeal doesn’t get accepted.
Gocubs,
my Mother in-law is in Jeff township (or Dunning but i think dunning is lumped in jeff town) last time i looked at her tax bill it was 35% land she had the HO exempt and is on a standard lot 3/1 frame house. her taxes are about 3k about ours.
“Jefferson Township can completely vary by 1/4 mile in value.”
but the assessor dont see it that way at all do they 🙁