Buying as an Investment: 1129 N. Mozart in Humboldt Park
1129 N. Mozart is a gut conversion of a three unit building in Humboldt Park.
The developer has been trying to sell the units individually for just about a year. (Thanks to the tipster who sent me info about this building.)
Recently, the entire building came on the market. Here’s the information about the building:
1129 N. Mozart: 7 bedrooms, 7 baths, 6 car parking (three spaces- each tandem)
- Currently listed for $749,000
- Taxes of $7004
- Baird & Warner has the listing
The listing states:
ATTENTION BUILDERS & INVESTORS. ALL UNITS READY FOR OCCUPANCY, 1ST FLOOR DUPLEX UNIT IS OCCUPIED AND TENANTS ARE READY & WILLING TO CLOSE. ALL NEW CUSTOM WINDOWS, GRANITE COUNTERTOPS, & NEW ROOF. HARDWOOD FLOORS, STAINLESS STEEL APPLIANCES, GATED TANDEM PARKING SPACES, ETC…
The first floor unit, Unit #1, is apparently now under contract. It was previously on the market for $349,900.
The other two units are still for sale. The listingw say to “Bring All Offers.”
Unit #2: 2 bedrooms, 2 baths, 2 car tandem parking
- Originally listed for $279,900 in 2007
- Reduced
- Now listed for $254,900
- Assessments of $150 a month
Unit #3: 2 bedrooms, 2 baths, 2 car tandem parking
- Originally listed in summer of 2007 for $309,000
- Reduced
- Listed at $289,900
- Reduced
- Currently listed at $274,900
- Assessments of $150 a month
Baird and Warner has both the listings.
Sold separately- these three units are being sold for a total of $879,700, or $130,700 more than what the entire building is listed for.
Is buying this building a good investment?
And now that one of the units is apparently selling as a condo, are the other two units good investments?
hmm lets see avg rent in Humbolt park for a three bd apt, 1000/mnth. and that usually split more then 3 ways. Mortgage with 20% down, 6.25% rate, 10K taxes(?) assuming you had all three units, you too could loose up to 6K a year!
I’ve been in these (and even faintly considered the top one). They’re actually pretty nice, but the living room area is SMALL. Forget combo dining/living — you’d be lucky to get a couch in there. And outdoor parking in that neighborhood just made me a little nervous. That neighborhood in general made me a little nervous.
For investment purposes, you’d be hard pressed to get more than 1300-1400 a month for these.
That’s an interesting part of Humboldt Park. I think if it were south of Augusta it becomes very interesting. Nonetheless, it could be a good investment.
I really like the area bounded by Western on the East, Chicago on the South, Sacramento on the West and Augusta on the North.
I don’t understand how this works. The “entire building” just went on the market, but one unit is already “under contract”. Does that contract just get assumed by the person who buys the entire building? What if I buy the building but don’t like the terms of the other contract, can I cancel it?
let’s just say that the contract on the duplex unit #1 would likely “go away” if you purchased the building. the situation is a “unique” one, per my info.
Then the person that bought duplex 1 must be an investor. I can’t imagine a homeowner being okay with that arrangement.
Weird. When I looked at these about two months ago, the agent told me the first floor duplex had already been sold. Floors 2 and 3 were still available. That’s a pretty long time for a contract to close.
Bldg_owner has it right… There’s no way this thing would cash flow with current rents in that area so this thing would be a pretty bunk investment.
sounds to me like a related party has the contract on the duplex.
the related party will suddenly get cold feet someone buys the building.
I’m guessing this is an attempt at fraud. Just a guess though.
With few exceptions, it would be very hard to buy a Chicago property at today’s prices and get it to cash flow as a rental. Especially if you account for all expenses. If it’s a condo, forget it; the assessments will kill any possible return on investment.