Buy This Short Sale Lincoln Park 2/2 And Get $3000 A Month In Rent: 744 W. Fullerton
We last chattered about this top floor 2-bedroom at 744 W. Fullerton in November 2011.
See our prior chatter here.
At that time, the unit was listed 38% under its previous sale price at just $360,000.
It was a short sale and had been under contract several times.
It still hasn’t sold but it’s come back on the market priced higher- at $420,000.
The building was constructed in 2007. It has upscale finishes including Viking kitchen appliances and the master bath has a separate shower with Grohe body sprays.
The unit also has a private rooftop terrace with southeast views.
There is parking included, central air and a washer/dryer in the unit.
The listing now says: ” Ideal for in-town condo or to rent. Close to DePaul & El-easy to rent. Last tenant paid $3000/mo.”
If you really could get that rent for it, does that make this a no-brainer investment?
Dennis Meunier at Conlon still has the listing. There are double the number of pictures now (maybe someone was reading Crib Chatter back in November!). See the pictures here.
Unit #504: 2 bedrooms, 2 baths, 1500 square feet
- Sold in October 2007 for $584,500
- Originally listed in February 2010 for $589,900
- Reduced numerous times
- Lis pendens foreclosure filed in January 2011
- Was listed in June 2011 as a “short sale” for $360,000
- Under contract
- Re-listed in October 2011 for $360,000
- Reduced to $355,000 in December 2011
- Withdrawn
- Currently listed as a “short sale” for $420,000
- Assessments of $240 a month
- Taxes of $5743
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 11×13
- Bedroom #2: 11×10
“does that make this a no-brainer investment?”
Yep. You’d have to have no brain to invest in this.
looks like the bank denied the short sale multiple times
Hilarious.
“If you really could get that rent for it, does that make this a no-brainer investment?”
So, stevo’s formula:
[12(3000-240)-5743]/.055/.8 = $622k!!!
I’d say that the $355k price was decent, if $3k rent is genuinely maintainable.
very small living room. deck looks onto fullerton. 355k is reasonable…420+ isnt
If you have the cash lying around it may make sense. The downside is that if this becomes a student rental it is a constantly changing tenant. Perhaps you get lucky and find a year round student for one or two years but more likely they are coming and going constantly. For a landlord student housing creates a higher aggravation factor, creates a likelihood of some open months, adds to tenant changeover costs, and highly increases the chance for serious damage to the unit. No thanks!
If they get a young working professional it is better but also has a strong likelihood of damage and a constantly evolving set of roommates. At that age people are very mobile as their jobs, relationships, and finances change quickly.
Think that I would pass on this one! The finishes are just too nice for a rental in that hood.
If its such a no-brainer then why is the seller letting this go via short sale which will damage his or her credit. Just rent the thing out. Seems like it must not be such a good deal because otherwise the seller is acting irrational.
So there is a private rooftop terrace in addition to the one shown off the living room – or just the terrace off the living room?
If there is another rooftop deck, how can you NOT show a picture of that?!?
“If its such a no-brainer then why is the seller letting this go via short sale ”
Owes about $580 on a 1+2 from fall 07. Can’t refi. Prevailing rate then would be about 5.75–at that, his monthly nut is about $4k.
$420k is short even on the first, with a $440 face, even before the missed payments+penalties+interest that racked up 18 months ago.
Financed at $417k, at ~3.5%, then it gets reasonable–35% less than the current nut (excluding default make good).
“then why is the seller letting this go via short sale which will damage his or her credit. Just rent the thing out.”
As anon’s breakdown above indicates, even if these folks could keep the place rented with minimal headaches for around $3k/mo (which doesn’t seem too hard to do), they may still be looking at $1,000+/mo out of pocket just to carry the place. That could make starting over/saving another down very difficult, and the payment history already shows that they’ve been through some rough waters.
Could they deliver pizza 10-12 nights a month to cover the $1,000 shortfall, in order to weather the storm (their own and the overall economy), pay down more principal and eventually get out with minimal pain/credit damage? Sure. But not everybody’s a Lannister (thank heavens).
Those are small bedrooms. Can’t believe someone paid almost $600,000 to live in this ugly building on a busy corner.
“The downside is that if this becomes a student rental it is a constantly changing tenant.”
Is it really a student rental at 3K/month?
“There are double the number of pictures now”
“If there is another rooftop deck, how can you NOT show a picture of that?!?”
Why have professionally done photos but not get a full set, especially one of the rooftop deck if that has some appeal.
My calculations at a $420K sales price show $84,000 down (20%) and $2,934 a month PITI and Assessments. Even if $3K a month rent were obtainable, that is not even break even when all misc. expenses are considered. Also, good luck getting a tenant in there with 3+ years of noisy construction directly across the street as Childrens comes down and the new towers go up. No thanks!
If one had cash sitting around so no mortgage was needed, it might make sense back at the $380K requested last year.
Is it really a student rental at 3K/month?
Many DePaul students families are well off. There are families that purchased million dollar homes in Malibu for their children that are students at Peperdine. Not unheard of for $1000 per month per kid. Remember that the dorm room bedrooms are tiny. They could easily put 4 kids in this place if the landlord did not know better.
“Why have professionally done photos but not get a full set?”
Many realtors are not the brightest individuals and most RE photographers are camera hobbyists turned professional. One of my old girlfriend’s mothers worked for a realtor down south. She hired her dropout son out for the rest of the team as a professional RE photographer and charged a lot of money to do marketing brochures. The funny part is that that dude could not even spell his own last name or tie his own shoes without help.
There is in fact a rooftop in addition to the deck off the living area. The spiral staircase is HUGE and takes up tons of space. It leads to a landing that takes you out to the rooftop deck, which has views of Children’s Memorial and a little bit of the skyline.
The place is decent, but the spiral staircase ruins any flow this place has. Also the living area is really really narrow. The good news is the walls are pre-wired for ipod/music, and the windows are very soundproof. You cant hear much of the Fullerton traffic when the doors/windows are shut… This shouldnt sell for more than 360k, and there is no way I would even pay that, but someone will.
Agree that the spiral staircase ruins the place.
But it would make sense at this price IF you could really get $3,000 a month rent. How much rent could it get? $2500? $2200? Why did the place not sell at the substantially lower price it was listed at in Oct 2011? Was it that the lender simply would not let the sale take place at that price?
Years of demolition and construction on Children’s Hospital complex across the street will be a nightmare for years… end of story.
Drive by this everyday and feel sorry for people living in this building located at perhaps one of the loudest intersections in Lincoln Park. Between the traffic and hospital construction I have always been curious, HOW do these people sleep? I notice that many have installed heavy blackout curtains and it seems rare that anyone would ever step out onto their balcony or even open a window.
There is no way you can get $3k for this place. That is all…
Shouldn’t this place also be haunted with the ghosts of the Parkway Tavern?
“Shouldn’t this place also be haunted with the ghosts of the Parkway Tavern?”
If so, I would assume turtle ghosts, too. Perhaps a reasonable alternative to giant land tortoises.
Maybe you’ve been watching a little too much of Million Dollar Listing? As a Pepperdine alum, I can verify that it is true that many people buy 1mm plus places for their kids. But this place for a DePaul parent doesn’t make sense at current list.
“Many DePaul students families are well off. There are families that purchased million dollar homes in Malibu for their children that are students at Peperdine. Not unheard of for $1000 per month per kid. Remember that the dorm room bedrooms are tiny. They could easily put 4 kids in this place if the landlord did not know better.”
“As a Pepperdine alum, I can verify that it is true that many people buy 1mm plus places for their kids. But this place for a DePaul parent doesn’t make sense at current list. ”
Mainly because it’s not in Malibu, so M&D won’t keep it as a weekend place/retirement home after Junior is done with school.
“Mainly because it’s not in Malibu, so M&D won’t keep it as a weekend place/retirement home after Junior is done with school.”
not even in east lincoln park says mr unicorn