Boarded Up Lakeview 3-Flat Sells Quickly: 1114 W. Roscoe
The boarded up bank owned 3-flat at 1114 W. Roscoe in Lakeview that we chattered about just a few weeks ago has already sold.
See our prior chatter here.
As you recall, there was only one interior picture of the property and it indicated that it needed work.
The 3-flat was on a standard lot and had a 2-car garage.
But the Brown line El ran directly behind the property.
It sold for $4,900 below the ask.
Eric Mundy at The Lake Shore Drive Group had the listing.
1114 W. Roscoe: 3-unit building, 2 car garage
- Sold in April 1992 for $140,000
- Sold in September 2003 for $388,000
- Lis pendens foreclosure in June 2009
- Bank owned in December 2010
- Was listed in December 2010 for $309,900
- Sold in January 2011 for $305,000
- Taxes of $7953
I’ve been seeing teardowns in Logan and Avondale going for 40 – 60K with taxes of 4 – 6K. Does this location really command that much of a premium? I assume this property is a teardown?
Amazing – I keep telling you guys that there are a LOT of people with a LOT of money out there that are going to scoop these places up. You don’t believe me, but just wait and watch. To tell you the truth, I am actually surprised that someone bought this – but who knows their plans….
“Amazing – I keep telling you guys that there are a LOT of people with a LOT of money out there that are going to scoop these places up.”
and with that logic they wont be that many people with a LOT of liquid money left.
“I’ve been seeing teardowns in Logan and Avondale going for 40 – 60K with taxes of 4 – 6K. Does this location really command that much of a premium?”
Obviously so.
Build a basic, 2500 SF (~20×45) house in Avondale, and you have about $375k into the house, then add in the developer’s margin–how many people looking for $450-500k SFHs in those parts of those ‘hoods?
Build a deluxe, 4000 SF house on this lot (or three condos), and ask $1.2mm total–seems more probable (tho, to me, still crazy) to get the ask, doesn’t it?
“I assume this property is a teardown?”
Yep.
Wow, I am very surprised it sold so quick. Tear down frame 2 flat with attic unit, off alley, Brown line runs behind, $8k taxes. I don’t know how the numbers could work.
How would being next to an alley affect pricing on a deluxe house? I would think someone willing to pay 1.2 million would fret over even the smallest things. As i’ve often times seen people do on CC
To back clio’s argument that in 10 years prices will go up, this one sold in 1992 for $140 at a time the market was on the uptick of the the 1990-91 slump. This place sold in 2003 for 388k a few years before the actual peak of the most recent bubble.
“Wow, I am very surprised it sold so quick. Tear down frame 2 flat with attic unit, off alley, Brown line runs behind, $8k taxes. I don’t know how the numbers could work.”
“How would being next to an alley affect pricing on a deluxe house? I would think someone willing to pay 1.2 million would fret over even the smallest things. As i’ve often times seen people do on CC”
I agree with both of you; as I noted, I think it’s crazy.
On the taxes, actually $10,500, but that will get reduced b/c of the sale and the condition/removal of the structure. The land itself is under 20% of the AV.
This is a big sign of the market coming back! Better buy before it’s too late.
They should tear it down and park cars for Cubs games. You’d make almost as much money in one summer as you would renting out 3 apts in one year. And you wouldn’t have to deal with douchey 25 yr old tenants.
You know, I’ve seen a bunch of multi-family unit go under contract in bucktown in the last couple of weeks. Things that had been sitting on the market for a long time.
Wonder if people out there are deciding it’s a good time to be in the landlord business, since renting looks better and better vs. buying every day.
I know a couple of people who have recently (in past 3 months) bought two flats near this one. one planned on living in one unit and renting out the other unit. and if/when their work and/or real estate market improved they were gonna turn the two flat into a SFH. the other planned on becoming a landlord (he owns another property so becoming is wrong word). Both had been looking for a very long time.
As for the area, i know several people that own around here and are planning on selling soon and moving to Lincoln Park. They have saved up more money and are looking for same size units they currently live in.. 2/2 and 3/2. Seems to be a pattern of moving from Lakeview to Lincoln Park. I never hear of people moving from Lincoln Park to Lakeview? Is this area used as a stepping stone or do the majority of people stay here for the long haul?
“To back clio’s argument that in 10 years prices will go up…”
I’m not sure that anyone here is arguing that particular point. I certainly am not. But I would dispute the notion that “RE always goes up!” or “Don’t worry about the RE market, just buy and be happy!”
I am personally of the opinion that there is downward correction still coming in prices, even in the good hoods. And that calls to “buy now or be priced out forever” are off base. But I agree that in ten years, RE prices will be higher than they are now. It’s what happens in between that concerns this sidelined potential buyer.
My guess was wrong but I guess that there is a sucker I mean buyer for everything. I’m hoping that Daley bought it for a corner dog run/small play lot for the neighbors. All in at under 400K seems plausible.
They can pay for it with all of the surplus money that they collected today with the new tax rates. Call the Governor!
I don’t understand how the numbers even work on this investment property. It’s a frame property thus you need to spend more money on maintenance and rents are falling.
As a potential landlord the elephant in the room is the very large number of condos that are going into the rental marketplace and also the condo owners who can’t sell their condo and decide to rent out their units.
It’s a tear down.
I don’t dispute that it is a nice neighborhood, but it is a crappy building on a crappy lot. I can’t believe it sold for this price.
“Wonder if people out there are deciding it’s a good time to be in the landlord business, since renting looks better and better vs. buying every day.”
not if you’re a landland in a metropolitan area/city with population growth that isn’t keeping pace with the population growth of the nation
“I am personally of the opinion that there is downward correction still coming in prices, even in the good hoods. And that calls to “buy now or be priced out forever” are off base.”
I agree with this also. If you follow Case Shillers correlation to the 90-91′ correction there is a dip coming, followed by a few years of volatility and a recovery starting in 3-5 years, and I am guessing a little later than that.
I dont think someone would have paid that much money for a tear down, im guessing a buyer with a 203k. I just don’t see an investor choosing that property among all the great deals on this. And it would be difficult/expensive for an investor to get financing on this. I see more an owner occupant with a rehab loan.
“I dont think someone would have paid that much money for a tear down, im guessing a buyer with a 203k.”
If so, that person is a fool who will expend a great deal of energy rehabbing the place to eventually loss a bunch of money.
Wouldn’t that 203k make federal taxpayers the losers? The orig note in 2003 was $291k with no refi, but legal actions filed including by the city. I’m figuring a cash buyer, and we all know how “smart” they are.
“Wouldn’t that 203k make federal taxpayers the losers? ”
Well, yeah. I was intentionally vague.
I used to think that 203ks had a limit of 35k, limiting the degree of leverage for this purchaser.
But it appears there are now two categories of 203k loans: 1) Streamlined 203k loans (35k limit), 2) standard 203k loans (NO maximum for repairs).
LOL.
I never even knew 203k loans existed! I’ve been looking at some teardowns, but don’t have the entire amount in cash. I can’t get a mortgage on a falling-down piece of junk teardown. But I can get a construction loan through Wells Fargo if the lot is empty to begin with.
Here’s a link to the 203k loan info in case anyone’s interested. It’s a little too much red tape for me and my eyes are glazing over reading it. I guess I’ll just keep saving and try to do it on my own.
http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
There are allegedly only a handful of lenders who do the standard 203(k) and iirc you need to use 203(k) approved contractors and they charge more money than regular contractors. And $35,000 on a crap shack is just a start, just a start. The crapshacks need support in the basement, new plumbing and wiring, siding, insulation, hvac, kitchen, etc.
66% INCREASE IN TAXES
AS AN INVESTOR I AM OUT O HERE
as far as investing in real estate goes
who votes for socialists???
“I’m figuring a cash buyer, and we all know how “smart” they are.”
Well, obviously they are smarter than 99.999% of people out there who need to take mortgages out. Seriously, G, if you are so smart and know-it-all, why don’t you have loads of cash?
“Seriously, G, if you are so smart and know-it-all, why don’t you have loads of cash?”
because he values family, and enjoying those around him to be in front of a spreadsheet 80 hours a week.
same reason i make the low pay i do, i chose not to get my CPA and bust hump 90 hours week through my 20’s and 30’s to make partner. i chose to enjoy every day and not wait for that one week a year to enjoy it.
Sorry i wrote my original post wrong I was just saying that i someone had 310k in cash they would probably be able to find better options than this to get a return on their money. And then you figure its a tear down, they have another 300k to rebuild a new home.
I don’t have much experience in this but i just dont see someone sitting on 600k cash being attracted to this property, i think there are much better returns out there for folks sitting around with that amount of cash.
BUT i could see someone getting a 203k rehab loan on this, YES its alot of red tape but you are talking about getting the lowest finacing rates in 50 years to not only buy your property but also rehab. I bet an owner occupant could make a very nice return on this place with a 203k loan, IF they were willing to go through the very complicated process
“BUT i could see someone getting a 203k rehab loan on this”
And I am dubious about getting permits to do it as a rehab. And you can’t do a 203k w/o permits.
Yeah… i guess thats the thing about 203ks lots of red tape, have you had any experience with them anon?
I looked into doing one but chickened out at the last minute. Im hoping to do my next owner occupied loan move into a multi family with a 203k.
“getting the lowest finacing rates in 50 years to not only buy your property but also rehab. ”
They’re quite a bit higher today than they were eight weeks ago.
“have you had any experience with them anon?”
Nothing direct, no.
“Seriously, G, if you are so smart and know-it-all, why don’t you have loads of cash?”
“because he values family, and enjoying those around him to be in front of a spreadsheet 80 hours a week.”
Thanks, groove.
Don’t worry about me, clio. I have plenty for everything my loving family requires or wants. No, that doesn’t include a lambo or boarding school out east, but we love what we have. I’m an old dad with the luxury of time to spend with my wife and kids and the experience to understand that it is truly rewarding beyond any “loads of cash.”
I’ve said plenty about myself here over the years. You’ve never repeated, or even guessed, one correct thing about me.
G – my comments are just in response to your overwhelmingly apparent anger towards people with money/cash. If you truly believed the things you just stated and really didn’t care about money/making money in real estate, you wouldn’t harbor these types of feelings. There is nothing wrong with wanting to make money – just don’t fool yourself into believing something you are not.
“my comments are just in response to your overwhelmingly apparent anger towards people with money/cash.”
I’m unaware that anyone else shares your interpretation, but maybe I’m wrong.
But I do agree that it seems G doesn’t like you much. Not that you should care …
“just don’t fool yourself into believing something you are not”
Sure thing, clio. Way to keep your losing streak intact.
“Not that you should care”
He takes my factual disagreements personally. I don’t know why.
OK G – let’s just stop this nonsense back-and-forth. I encourage you to keep challanging my facts. Just because you challenge and question them doesn’t mean they are not accurate.
“Just because you challenge and question them doesn’t mean they are not accurate.”
No kidding, they would be regardless.
Oops. They would not be regardless.
G – Your first statement was more accurate – freudian slip, perhaps?
No, just a mistake.
G – always having to get the last word in.
Out of curiosity has anyone here successfully pulled off a 203k? care to recount your experiences with it
I did one about 20 years ago. It was a time when they were popular. My first prop in IL. It was a pain but did provide the funds I didn’t have. All work had to be approved before the loan so there was a lot of work to do before approval that could have been for nothing (plans that could get permits being the big expense.) It took inspections to get the draws after work was done. I think it was 3 or 4. That part I remember being a royal pain. Anyone who has gone through a reno with the money in the bank can attest to the hassles of staying on top of everything – now put it in an escrow where the lender has to agree on any payouts and you have added misery. At least have some of the cash on hand to pay contractors, because the biggest problems were with delays in getting funds. I hope they do a better job today. Oh yeah, they also didn’t like ‘luxuries’ included, but I assume that is a changing standard. I kind of remember cutting down the deck size and no hot tub as changes. Given today’s belief in pergraniteel/jacuzzi-tub/gator-deck as necessities of life, this is likely no longer a problem.
“Anyone who has gone through a reno with the money in the bank can attest to the hassles of staying on top of everything – now put it in an escrow where the lender has to agree on any payouts and you have added misery.”
That, of course, is standard commercial construction loan process in Illinois. It’s really shocking how lax the practices are in many/most other states–lenders undertake absurd risks.
20 years ago?!!! How old are you? From your posts, I assumed you were in your 20s.
You know absolutely nothing about me, clio. Every assumption made, straw man erected, and ad hominem hurled have been incorrect. You have a perfect record.
Anon, you might be surprised at how lax the oversight of those comm’l draws was in many cases. On second thought, I bet you knew.
G, how long did it take to close on the property? What you are describing sounds like it would take well over 2 months, so im wondering how you could get a seller to agree to it?
I bought a HUD home (fha foreclosure.) They used to signify if 203k was available on the auction list, especially if it languished. I can’t remember how long it took but the process was longer than typical HUD homes (that even with financing could close in under 30 days back then.) I don’t see how it would work with a regular seller, either. I’m thinking the recent 203k push is another backdoor bailout for banks to unload their real junk REO. Who cares if it doesn’t work out for the borrower if the govt will guarantee the bank’s profit? Not to mention the program has been rife with borrower abuse from day 1.
“Anon, you might be surprised at how lax the oversight of those comm’l draws was in many cases. On second thought, I bet you knew.”
Lax oversight beats taking the developer’s and contractors’ word for it, like in Cali.
G – just do what you are good at and stick to providing data – leave the interpretation up to us.
I saw some workmen walking into the building at 7:35am today with tools. Maybe they won’t tear it down.
I did a 203(k) and lived to tell about it. On the otherhand, the GC I used ended up doing some time in the Federal Pen…