Bank Owned Vintage 3-Flat in Southport: 3510 N. Ashland
This 1898 vintage 3-flat at 3510 N. Ashland in Southport appears to have many features that would make it attractive to investors.
It’s in a prime rental neighborhood, each unit has a renovated kitchen, a washer-dryer in the unit and central air and there is 3-car parking.
The building is also listed for $386,100 under the 2006 purchase price.
Is this a deal at this price?
David Piche at Re/Max Signature has the listing. See more pictures here.
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
- Currently still listed at $713,900
- Taxes of $10,144
- All utilities separate
- W/D in each unit
- Central Air
No.
Wow…..I would like to be the person who sold this in September 2006!
The listing has it at $681K
At $680K, I calculate about $4300 per month, with 20% down, and including insurance and property taxes. I’m not sure what rents are in Lakeview to live on a busy street. Anyone want to guess?
The problem is this is a very busy street and a little too far west for the most premium rents. I’d expect each of these to rent for $1600-1800 with the parking.
i rented the 1st floor duplex down unit in this building in 2004 immediately after the renovation was completed. at that time i believe we paid $1800/month, i can’t remember what the 2 upstairs units rented for but i believe it was around $1400/month.
i would not go near this building at any price as the basement level which at the time included the “master bedroom” and i am assuming still does flooded constantly.
> and i am assuming still does flooded constantly.
This could be fixed, but I think the price would need to come down to make it worth the cost.
seriously… 1.1 million at the height of the bubble? ridic….
This place is ugly as hell.
What a dump, although its probably cash flow positive if you wanna play junior trump.
After taking into account vacancy rates and projected maintenance I’d say this thing wouldn’t be CF positive until around 550-600k.
Remember this isn’t East LV where your apartments are vacant less than a month in between tenants.
it might be a bit overpriced, but I’d bet there are hordes of young people willing to pony up to live in “Wrigleyville,” it’s a short walk to Wrigley and lots of stuff to do on Southport.
(I’ve often wondered what will happen to the “Wrigleyville” brand name if a new Cubs owner changes the park name!)
Ashland is a crazy-busy street, but that location is about as good as Ashland gets, at least you’re a few blocks away from the nightmare gridlock of the 6-corner, airplane landing-sized intersection at Lincoln & Belmont.
you’d think that the plumbing problems would have been caught during the inspection… wait, what happened. The rehabber didn’t pull any permits and did a shotty ‘cosmetic’ rehab. unbelievable…
This might not be that bad for a live-in owner. If you take the duplex you bring in about $3K a month in rent; that covers about $425,000 on the mortgage. $10K in taxes hurts. No assessment but all maintenance costs are your’s. If your in your late 20’s/early 30’s and don’t mind a little work, this could be a great catch for $550-600K. Assuming the basement flooding is not completely fubar.
But since this is a 3 unit, not a 2 unit I don’t believe that you can do FHA financing or get away with less than 20% down. Plus banks usually only caount rental income into affordabilty/ debt ratios if the units are occupied.
I’d think that rents for the 2nd floor -2bed/1 bath and the 3rd floor- 3 bed (or 2+den)/1 bath would be more than $1400. I get $1400 for a similiar 2/1’s in Logan Square. And as we have learned from this site’s posting, Lakeview is infinitely better than Logan Square….not that I’m taking it personally.
If you can get 4 recent Big-10, I-must-live-in-Wrigleyville, grads into the duplex I could see squeezing $2200-2400/month out of them. Their folks will help with the security deposit and co-sign, so no worries.
if the basement is flooding only in extreme conditions, it isn’t necessarily something you’d catch during an inspection.
in recent years many people I know who never had flooding problems have gotten them, when the City’s water table rises extremely quickly, sump pumps can’t always keep up.
Wrigleyville is Clark not Ashland. People move west to save money on rent not pay the same.
I found this interesting… that house in Atlanta is pimp!
http://finance.yahoo.com/real-estate/article/107100/What-Will-400,000-Buy-Today
^^^ditto.
I live east of here and wouldn’t consider living on Ashland for the rent prices I quoted. But some people apparently value the amenity of being closer to the Wendy’s at Fullerton and Ashland I guess.
“Wrigleyville is Clark not Ashland. People move west to save money on rent not pay the same.”
hahahaha, oh my friend, not that I disagree with your assessment of what Wrigleyville *ought* to be called, but you need to get out more- they pitch Wrigleyville all the way to Damen!
Addison and Damen my old ‘hood is roscoe village or north center; the area in between ashland and southport is more like west lakeview.
I would think the area between ashland and southport is “southport corridor”.
jeri- what was the LL like? Did he/she have any clue about real estate, have any other properties, or know how to manage a building? I just don’t see who could pay $1.1m for the place with $4,600 in monthly income, but then again if the place is now bank owned they couldn’t.
“west lakeview” is every bit as bogus a neighborhood as Wrigleyville is, IMO, a good chunk of it is technically in North Center!
I agree with you in spirit that Wrigleyville should really be a few blocks in each direction from the park, but I could find a zillion links showing people abusing those borders, that’s all.
Anyone wanna buy my one bedroom condo in what I’m calling Gold Coast North (aka east Rogers Park)? No plasma here, baby. I’m going retro and offering an 8-track stereo instead.
Sorry 2006 buyer, but 1.1 was way too much. That type of cash could have bought a beautiful graystone on Belden in LP at the time. If you’re out there, lemme know if you’re interested in the unit in my newly christened Gold Coast North.
The guillable one in that 2006 transaction wasn’t likely the “buyer”. It was the bank that gave these mortgage fraudsters the loan.
Unlikely that an owner-occupant would pick this Ashland Ave. 3-flat w/cheap interior gut job and cheap rental finishes, a building that likely has visible water damage in so-called “duplexed 1st floor unit” and a very busy four-lane roadway just beyond livingroom window. There are far more buildings/units for sale than there are buyers. This is likely to be a long-term problem. Far fewer people will qualify for mortgages, much less for jumbo loan mortgages, and far fewer people are even interested in purchasing real estate today. A few “vulture” buyers don’t constitute an adequate market for the large volume of property presently for sale. Note that there are even more potential sellers, whether distressed owners needing to sell, or owners simply wanting to unload their properties, who haven’t listed yet.
Met with two real estate developers this week, who have developed large residential and office high-rise buildings. They noted that refinancing as well as new real estate loans are extremely difficult to obtain, and negotiation/approval process complicated and protracted, suggesting that the mortgage industry as a whole is still deeply troubled and illiquid. April 2009 saw a significant leap in forereclosure notices, and the collapse of the commercial loan market is likely to occur this summer with large numbers of commercial loans also going into default. Their prediction of real estate market prospects was far gloomier than the rosey picture given by Tim Geithner.
Well said Architect, well said.
—>”jeri- what was the LL like? Did he/she have any clue about real estate, have any other properties, or know how to manage a building?”
The LL was originally carpeted and after the first flood incident it was removed and tile was put in the entire LL. At the bottom of the stairs is what could be a family room with the master bedroom suite behind it. The master bed was fairly large, but very dark and cold as there was no windows from what I remember.
As for the flooding problems I remember the landlord telling us it would be huge expense to get fixed as it would require up digging up part of Ashland to get to the cause, no idea if this is true.
Not sure if the landlord had previous experience with rehabs but this one was shotty at best. I remember nothing was even painted when we moved in only primed if that’s any indicator of the craftsmanship.
That article about homes for $400,000 was depressing, in that nowhere in Chicago can you get that much house for $400K. Home prices here are ridiculously high compared to other parts of the country.
“Home prices here are ridiculously high compared to other parts of the country.”
The funny thing about the Case-Shiller index is that all metropolises (is that metropolii?) are all indexed to a 100 value for January 2000. So its not much help there. If this area had stupid overpriced real estate in January 2000 today’s numbers bias that to those.
I agree with your overall point however. For the life of me I’ve never been able to figure out why an Arlington Heights 4br/3.5ba goes for 450k in Chicagoland but 250k in Cleveland, Indianapolis, Cincinnati/etc.
Looks like a lot of homeowners livin’ the credit dream on less LTV, only slightly higher household income and a lot of cosmopolitan hope on gentrification. Yeah their dream is going to be awoken up soon enough so don’t worry about them.
The days of the 400k and 500k ‘house’ are over but clueless homeowners don’t know it yet. There’s a reason the market is at a standstill, and let me tell you, it’s not media bias or fear: it’s prices.
Cognitive dissonance.
i actually used to live in the second floor unit..the rent then was 1300, and that was 2004-2005. i loved living on the busy street bc you didnt need a parking permit. also…there was a problem with our tub! the jets were apparently just for decoration! annnd, the best part was that when the unit above us used their tub our ceiling leaked!!! to the point where it was filling up out light fixture with the bath water!
I’ve seen the property inside and it looks fine at first sight…I wonder if the 2006 owners did some work on it…
Could this be easily converted into three different units to sell further on in time?
Regards!