Bank-Owned Multi-Unit Sold for $515,000 Under 2006 Price: 3510 N. Ashland in Lakeview
We chattered about this bank-owned multi-unit building at 3510 N. Ashland in Lakeview several times.
See our September 2009 chatter and pictures here.
It finally sold in September 2009 for $515,000 under the 2006 purchase price but above the 2003 price.
We’ve debated if this made sense from an investment point of view. Apparently, the new owner will soon find out.
David Piche at Re/Max Signature had the listing.
3510 N. Ashland: 3-flat, 9 bedrooms, 4 baths, 3 car parking
- Sold in December 2003 for $470,000
- Sold in September 2006 for $1.1 million
- Bank owned in January 2009
- Originally listed in April 2009 for $713,900
- Was still listed in May 2009 at $713,900
- Reduced several times
- Was listed in September 2009 for $626,900
- Sold in September 2009 for $585,000
- Taxes of $10,144
- All utilities separate
- W/D in each unit
- Central Air
three words describe the 2006 price:
mort gage fraud
gl to the new owner
I vividly remember in 2003 I rode my bike past a two flat at or near the intersection of Grace and Damen, and the owner was gardening in front of her For Sale sign. I asked her how much as I rode by and she said $900,000. $900k for a two flat in roscoe village (or north center as anon(tfo) says. Damn that’s crazy. I think the 2006 price reflects a lot mortgage fraud, and probably a some unbridled optimism of a naive specuvestor. They actually rehabbed the place and made a few payments. It until Jan 2009 to be REO. If this were outright fraud it would be first payment default or the other popular fraud, go condo and sell each unit for $500k even though little work has been done, THEN first payment default. Damn I wish I were that flipper who bought in 2003 and sold in 2006. I bet he’s pissed away most of the money by now.
I’m surprised it sold for so much, the rental market sucks, even in this area and this is on Ashland.
Someone patient might be able to cash flow this pretty nicely over the next 5 years or so, not a bad deal and who cares if its on ashland, its not like you’re going to live there!
“Damn I wish I were that flipper who bought in 2003 and sold in 2006. I bet he’s pissed away most of the money by now.”
He probably used it to buy 6 more properties.
“two flat at or near the intersection of Grace and Damen”
On Damen? Or on a side street? Insane even on a sidestreet, but totally whackadoo on Damen, unless it was a double lot.
“in roscoe village (or north center”
Or, Bell School “district” as partially explains some pricing.
And, not that it’s determinative, but the dividing line b/t RV Chamber of Commmerce members and North Center Chamber of Commerce members is N-S of Addison. West Lakeview Liquors–Addison+Leavitt (great beer selection)–is an NCCC member and *not* an RVCC member. So it’s not just me.
“Someone patient might be able to cash flow this pretty nicely”
Depends how/if they financed, no? Aren’t investment property rates still relatively high?
“Depends how/if they financed, no? Aren’t investment property rates still relatively high?”
Nope. You can thank govt. Can get up to 75% LTV Fannie/Freddie debt on MF at sub 6% interest rate.
“who cares if its on ashland, its not like you’re going to live there!” Prospective tenants, that’s who. One of my friends is having trouble renting out a nice unit right off Southport in a very attractive block, I can’t imagine it will be easy to rent out units on a busy street when a quieter street is slow to rent. Maybe over five years though….
“two flat at or near the intersection of Grace and Damen”
On Damen? Or on a side street? Insane even on a sidestreet, but totally whackadoo on Damen, unless it was a double lot.
It was one of these, I don’t remember which one, I never bothered to follow up on what it sold for. It was a red brick two-flat around teh corner from me; I lived at addison/damen It was on a side street, waveland or byron or grace. I remember my jaw dropping at $900k in ’03.
It’s very rare that I see a multi-unit building in Chicago that seems to make sense as an investment. The property taxes are so outrageous and rents in most parts of the city are so low, I have no idea how most buildings in this town are worth the trouble unless you buy a dirt cheap place in the ghetto and hire someone else to deal with all the headaches of managing it.
Has anyone here considered buying rental property in another city (one you’re familiar with) just because the taxes are low and the rent vs. ownership costs make more sense than they do in Chicago? I’m from Alabama and down there it’s much easier to find something that cash flows because the prices and taxes are so low, and the rents in major cities there really aren’t much lower than in Chicago. But I’m not sure if it’s worth the headaches of being a long-distance landlord.
This buyer got a great deal, if it doesn’t need to much work.
The buildings that cash flow in Chicago are the ones that were bought years ago by management companies or individual landlords; low cost basis, usually the mortgage has been paid off, and the maintenance level tends to be low. The typical vintage Chicago apartment. Anyone who buys individual condos to rent is insane. They’re holding the property for capital appreciation not cash flow. As we’ve discussed here numerous times, capital appreciation happened during the ’00’s, it’s all downhill from here.
Roscoe Village Neighbors’ “territory” is Belmont to Addison on the N-S. Ravenswood tracks to Western on the E-W. I didn’t think there was any controversy about the boundaries of RV! (Unlike “Lakeview.”)
“I didn’t think there was any controversy about the boundaries of RV!”
You and I agree. Many others here do not, extending RV on both the north and (esp.) the south–often as far south as Diversey (ie. Hamlin Park/Lathrop Homes/etc).