Flip This House: Renovated Montclare Cottage Under $230K: 2741 N. New England
There has been a lot of single family house flipping going on in the outer neighborhoods such as this 4-bedroom at 2741 N. New England in the Montclare neighborhood.
The listing says it’s been completely remodeled.
The kitchen now has all the new construction bells and whistles including dark maple cabinets, granite counter tops, stainless steel appliances and a trendy backsplash.
The bathrooms have been completely renovated as well.
3 out of 4 of the bedrooms are on the main floor- with the 4th in the finished basement.
There are hardwood floors on the main level and carpeting in the basement.
The house has central air, a 2-car garage and a deck off the back.
Izabela Sloma at Sergio & Banks has the listing. See the pictures here.
2741 N. New England: 4 bedrooms, 2 baths, 2 car garage, no square footage listed
- Sold in September 2002 for $166,000
- Sold in July 2003 for $255,000
- Lis pendens in December 2008
- Bank owned in October 2009
- Sold in March 2010 for $120,000
- Originally listed in April 2010
- Currently listed for $229,900
- Taxes of $2869
- Central Air
- Bedroom #1: 11×11
- Bedroom #2: 9×10
- Bedroom #3: 9×10
- Bedroom #4: 10×11 (lower level)
- Living room: 12×12
- Dining room: 9×12
- Kitchen: 10×12
- Family room: 17×19 (lower level)
looks nice inside. 300 sq ft seems like it should be 2 br not 3 on upper level
Very nice suburban house. This would have an asking price of a minimum of 3x as much if it was in the green zone.
OTOH it just recently sold for $120,000, less than 2 months ago, so I wonder if this flipper put some lipstick on this pig….
wow a semi-reasonably priced house in a non ghetto hood, kudos Sabrina those are a rare find
The area isn’t too bad although you will be car dependent. The forest preserve trail is a really nice neighborhood amenity and Edison Park is close by. Highway access is fairly close and of course, the best part of the neighborhood, SuperdawG!
Nice looking place, though the different decorating styles are a bit distracting.
“The area isn’t too bad although you will be car dependent. The forest preserve trail is a really nice neighborhood amenity and Edison Park is close by. Highway access is fairly close and of course, the best part of the neighborhood, SuperdawG!”
The map on the coldwell banker link is wrong. This is groove’s area.
It sold at judicial sale for $102,000 to the bank in August then to a rehabber for $120k in March.
The before pics show an ugly clad house and I suspect the inside was not pretty. With transaction and rehab costs which I would say was a minimum of $40,000 I think you have to say this rehabber did exactly what good rehabbers do – take an undesirable property and make it into a home again. I am as unimpressed as others by those trying to make a quick buck with no added value but I think you have to concede this rehabber did a good job and will be fairly rewarded for it.
hd,
if you think it’s lipstick then check out the before of the exterior
http://ilfls.com/picture/177742.jpg
“It sold at judicial sale for $102,000 to the bank in August then to a rehabber for $120k in March. ”
And the bank apparently listed it for $94,050, so there was a meaningful bidding war.
But that this sold for $120k as-is is the problem Groove always mentions.
Actually the re-clad was done prior to the rehab so I take it back on the estimate.
Why is this selling for $120k as-is a problem if re-habbed it is fairly priced at $229k? We can’t simultaneously bemoan flippers making quick money and as-is prices being too high. The bank listed low @ 95k, the economics worked for a bunch of different people and so it sold to the highest bidder for 120k. That’s just free market economics surely?
I think this cost way more than 40k to rehab.
Don’t delude yourself into thinking this is the free market.
There are a hundred or more recent foreclosures filed in 60707.
http://interactive.chicagobusiness.com/foreclosures/zipcode/2010/?zipcode=60707
The bank is obviously slowly releasing REO properties one by one. Multiple bids confirm the fact that inventory is artificially tight and has been so for a while.
Two more foreclosures filed in 2010 less than a block south:
2628 N New England $244,000
2638 N New England $201,617
The neighborhood has a difficult enough time supporting $200,000 mortgages and the flippers are adding accelerant to the fire.
“Why is this selling for $120k as-is a problem”
It’s a problem for someone like Groove who has a house in the hood that he wants to sell for $300k (or whatever). As he notes, most who are interested in the area are more likely to do the work themselves.
“I think this cost way more than 40k to rehab.”
Even if the labor was 75%+ done by the flippers themselves? With an expectation of paying themselves thru the sale proceeds, of course.
“The flippers are adding accelerant to the fire” – in what way? Making previously uninhabitable house into homes people want to live in?
Short term – I understand the shadow inventory argument but when they hold a large stock how else would you expect a normal market participant to act – to just dump all houses for $50k? I do not have a specific view whether the banks are going too fast or too slow but we all have access to REO numbers and so when a house comes up for sale and an investor’s numbers works that is by definition a free market dynamic.
Long term – the only way a recovery is born is if more people want to move into an area because it is a nice place to live and better value than other areas.
In either time frame I find it hard to see how the flipper is a catalyst to your impending doom world.
and by flipper I mean genuine rehabber as in this case not a simple turn around with zero added value flipper
Anybody who buys this place for $225k, especially with little money down, will themselves be underwater, as more foreclosures are rehabbed and flipped. When the banks finally work their way through all the foreclosures places, the flippers will be buying these for $50k and selling them completely rehabbed for $150k. That’s still a couple of years down the road, however.
correction – these are not flippers they’re rehabbers.
They worry I have with buying a rehabbed house is what long term maintenance issues have been covered over with a coat of paint for a quick flip? Are there foundation problems? Does it need a new roof shortly? what other issues have been covered up by some new drywall and a coat of paint?
i doubt this is a flip job; they put in quite a bit of effort and materials. a good home inspection will be able to tell if they shortcutted; much easier than determining how long an old facade or interior would last.
HD,
You want move-in ready house, all new appliances, furnace under warranty, fully tuckpointed, new lintels, new roof, new concrete, new garage-all fully permitted and inspected-for land value.
That’s why you don’t own a house.
This place seems very affordable for a middle class family and (from the photos) looks to be fairly well done. I fail to see the problem…
“You want move-in ready house, all new appliances, furnace under warranty, fully tuckpointed, new lintels, new roof, new concrete, new garage-all fully permitted and inspected-for land value.”
hahahahahaha. G.O.
The problem is that other people on the at least two other homes on the same street have gone into foreclosure on very similar mortgage balances. 200k+ is too much for the type of person who would live here. However due to the general lack of inventory this will sell to some greater fool for 200k.
“very similar mortgage balances.”
$244k isn’t even “very similar” to $201k, much less the (likely) sub-$190k this will end up with. Plus, I’d wager those other two weren’t *finished* rehabs.
It is irrelevant whether the homes ib foreclosure are finished are rehabs. All that mattérs is the mortgage balance. Plus the 244k probably includes 10 to 15 g’s in missed payments, back taxes and attorneys fees. This house here has fha 3.5pc written all over it.
all I gotta say is that america needs a serious reeducation on what is affordable for the middle class. Look to some of the suburbs. Short sales of totally turnkey homes in the 100’s. Villa park or north lake or elmwood park isn’t that much different than this neighborhoodd.
Have a good wwekend everybody!
“It is irrelevant whether the homes ib foreclosure are finished are rehabs”
So fixing stuff is free? Send me your “i work for free” contractor’s info. And the address of the free appliance store, too.
“Plus the 244k probably includes 10 to 15 g’s in missed payments, back taxes and attorneys fees.”
$244 is the face amount. And there’s a 2d from a year later for $31 more. And the $244 refi’d $241 used to buy the place 2 years before that–purchase price was $245k.
http://www.redfin.com/search#lat=41.9307622765775&long=-87.79985904693604&market=chicago&sf=1&sold_within_days=90&status=130&v=5&zoomLevel=16
Only a handful of SFH more expensive under contract or sold within the last 3 months. The average place sells in the $100’s. That’s a working class price for this hood. No, they are not rehabbed or as nice as this place but $100’s seem to be selling. $200’s and especially $225k is a bit high.
Things will be much closer to normal when flippers can sell these and make money when they’re in the mid to high $100’s. We’re not there yet. Close, but not there.
“Things will be much closer to normal when flippers can sell these and make money when they’re in the mid to high $100’s.”
Do you actually think that this guy won’t make money if he sells at $195k? $230k is how much he’d like to make, but it isn’t what he has to get to make money.
He’s bought 12 properties from banks and sold 4 so far–for $230, $245 and $330 (twice).
I wish him the best of luck.
” Villa park or north lake or elmwood park isn’t that much different than this neighborhoodd. ”
dude… Villa park is one of the trashiest western suburbs of all of chicagoland… this neighborhood BLOWS it away
“Villa park is one of the trashiest western suburbs of all of chicagoland… this neighborhood BLOWS it away”
Unless you have kids. Willowbrook HS is better than any CPS attendance area HS.
well your taxes in VP are going to be a lot higher than 2800 a year too, and not everyone middle class cares about the quality of their respective CPS school 8)
“and not everyone middle class cares about the quality of their respective CPS school”
Sure, but who the hell would choose to move to Villa Park (or, really, anywhere in DuPage) if the schools mattered not to them?
because they can’t afford a place in the city?
or maybe their job is there?
or maybe they really like the company wierd mutant white people that hang out at the metra “station”?
I dunno, If it were a choice to move to Villa park or kill myself I’d have to think about it for a while…
Kill yourself Sonies 😉
hah you first!
new Mark Hanson interview up at KingWorldnews.com
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/5/22_Mark_Hanson_files/Mark%20Hanson%205%3A22%3A2010.mp3
Let’s see…
5 months on market before the rehab
sold for $30k more than bank listed it even though I am sure it was in pretty bad shape in and out
one month turn around for rehab (which to me demands a thorough inspection)
easily $40-$50k in work and materials (time frame and amount of work done shows this was not done by a weekend DIYer)seller seeking a $109k markup after rehab, $50-60 profit
It all sounds about right to me.
Other than the small room sizes, which the finished basement makes up for, and the questionalbe rehab time frame, this is a decent-very good place for a working class, two income household. It seems to make sense to.
I dunno the neighborhood but if its not the hood then seems like a pretty good deal.
you guys are way off the mark if you think that 229k is a goof price for a two person working class family. Looksies at prices in the hood. The mean, mode and average is clealry in the 100’s. Remember working class means 15 bucks and hour plus benefits which is considered a good job. Two worker households making 60k a year is a stretch to buy. So its rehabbed – so what. Its still 20pc overpriced for the neighborhood.
“new Mark Hanson interview up at KingWorldnews.com”
Thanks for the link Dan. He brings up some good points- especially about the affect of the government intervention. We really won’t know until a few months out how big a role it played in propping up the market earlier this year.
I also thought it was interesting that he pointed out that the government and the home builders were making it very clear that buyers HAD to buy now- or else. The pressure put on first time buyers has been tremendous. And many took the bait. We’ll see how it all plays out.
HD,
Neighborhoods can and do have houses in a few price ranges.
My neighborhood, West Ridge, has houses that need work, short sales, estate sales, etc. selling for under 200k and houses in nice condition, or totally rehabbed selling for closer to 400k.
So yes, a rehabbed house in a decent neighborhood in Chicago can sell for more than most of the crap out there right now.
For Example: http://www.redfin.com/IL/Chicago/2643-W-Jarlath-St-60645/home/13601975
I agree with dahlichi in that there are very few neighborhoods where prices on all properties are equal.
While not all properties have experienced foreclosure personally, the neighbors who did threw off the pricing balance and the effects of it will be felt for years.
“The map on the coldwell banker link is wrong. This is groove’s area”
DZ, you are correct this is just west of my area. and darn close to elmwood park. Its a tad to close to the “scary” liquor store in diversy and oak park. the park, bell park, aint what it used to be. The area is mostly hispanic with few itailian and irish hold outs (the hold outs being the elderly that have been there for many years from when the nabe was better)
“It’s a problem for someone like Groove who has a house in the hood that he wants to sell for $300k (or whatever). As he notes, most who are interested in the area are more likely to do the work themselves”
Yep anon, its a DYI area. i mean DYI everything from car repair to dining out its a DYI everything. Me and my neighbors last spring fixed the pot holes around us ourselves.
Groove… its DIY (do it yourself)
not DYI (Do yourself it)
“dude… Villa park is one of the trashiest western suburbs of all of chicagoland… this neighborhood BLOWS it away”
Well there is an area of villa park that is a sweet as emhurst. a good college buddy live in that area and home prices around him are stil holding strong.
He does admit that the “good” area is shrinking as of the past 6 years.
wEstloopelo,
The fact of the small room sizes still intact, and the tile in the bathroom only around the tub area had me thinking it was a DYI job at first because, with old chicgao houses and there small room sizes, most DYI are people afraid of knocking out walls cause not knowing of simple structure and support (some will do it anyways).
But you did point out the turn around time, i saw they cut into the back for the sliding glass door, and they did finish the basement with all the other work.
“not DYI (Do yourself it)”
spanglish.
so know you guys see my problem,
a fully rehabbed (likely professional rehab) in a better area than mine, 3br 2bath (not counting the basment bedroom and bath), C/A,w/ lower taxes, is listed for 230k.
how is a brother to compete?
“not DYI (Do yourself it)”
spanglish.”
“Groove… its DIY (do it yourself)
not DYI (Do yourself it)”
I have missed crib chatter 🙂