Flipper Alert: 4 Months Later and Holding Firm on the Price: 600 N. Kingsbury
Remember this 1-bedroom unit at 600 N. Kingsbury in River North from the fall of 2009?
The unit was originally bank owned and then bought and re-listed only two months later for $78,900 more.
See our October 2009 chatter here.
It’s now 4 months later and the price is still the same.
It is no longer the cheapest 1-bedroom for sale in the building (even though the listing says it is).
Unit #1104, a 750 square foot east facing unit, recently came on the market for $199,900 (plus $30,000 for parking.)
Jason Palermo at Re/Max Vision 212 still has the latest listing. See the pictures here.
Unit #814: 1 bedroom, 1 bath, 705 square feet
- Sold in December 2002 for $215,000
- Lis pendens filed in February 2006
- Lis pendens filed in August 2008
- Bank owned in June 2009
- Was listed in July 2009 for $178,200 (parking included)
- Sold in August 2009 for $200,000 (parking included)
- Re-listed in October 2009 for $249,900 (parking $29,000)
- Reduced
- Was listed in October 2009 for $238,900 (parking $29,000)
- Currently still listed for $238,900 (parking $27,000)
- Assessments of $341 a month (they were $406 a month when it was bank owned)
- Taxes of $3511
- Central Air
- Washer/Dryer in the unit
Unless it’s rented or owner occupied, this asswhipe is loosing over a grand a month. Mantalongo time!
He paid all cash so he’s not “loosing” or… as English language users say, losing a grand a month… he’s losing $633 a month and half of it is tax deductable so he has about 100 months to breakeven if he sells at this price
Everything is a tax deduction for this guy as long as he has the passive income to offset.
You can get a 2% yield on an FDIC insured savings account, which is 4k/year. So you need to add in $333.33/mo he is foregoing in income to the comparison, lets assume $240 after taxes (28% tax rate).
$240 + $341 + $(3511/12) = $800/month. Or just $550 if you don’t count the opportunity cost. $800 sounds close to a grand a month to me..
Ok so fine he has 81 months (or 6.77 years) to sell this place at his current asking price at $800 a month to break even…
Think it will happen?
Only takes one buyer
“Think it will happen?”
With the FHA loan sausage mill facility running all three shifts absolutely.
Sonies, you have to knock 20 months off of that to reflect only 6% in transaction costs.
“Think it will happen?”
Not likely with higher floor units not selling at his ask last year and others now offered for less. No way it gets the necessary FHA appraisal under the current circumstances.
“Not likely with higher floor units not selling at his ask last year and others now offered for less. No way it gets the necessary FHA appraisal under the current circumstances.”
Even at 61 months all it takes is one 80k/yr drone with a corp job downtown to move to the area when there aren’t available cheaper comps. Thats 5+ years for those variables to come together. Chances are the seller will have to lower his ask to meet the FHA appraisal but odds are he’ll make out okay I’m guessing.
With the FHA’s 3.5% down loans the idiots are still in the RE game, unfortunately. And its fairly easy for an 80k corp drone to muster up $10k.
Yes, he will have to lower his price a lot to meet the appraisal and that means an even shorter timeframe in hopes of breaking even. We shall see what happens if he doesn’t lower the price.
Wow you really dislike $80k/yr drones, huh?
You can’t get a 2% yield on a savings account. With rewards checking, sure. The highest MMA APY is under 1.5% today.
Yes Simon you indeed can:
http://www.alliantcreditunion.org/depositsinvestments/savings/regularsavings/
I dislike corp drones sometimes because they assume they’re right. Then you have to spell out the correct research you did to prove to them that they’re not, in fact, correct. 😀 heh just kiddin’
Reward checking accounts can be up to 5% but I exclude them as the limits are low and I don’t the investor would want to juggle multiple (10+) accounts requiring a direct deposit, bill payment, and 10 debit transactions each. However if it was my 200k you can bet I’d be a yield chaser.
https://www.sonoranhighyield.com/
Good call on the Alliant CU, probably one of the few nationwide CUs that everyone can join right?
what makes FHA appraisals so difficult? shouldnt’ it be like any other appraisal? (Probably a stupid question but i really don’t have a clue, as always).