Flipper Alert: Trying to Flip a 1-Bedroom for $66K Profit: 30 E. Huron in River North
We’ve chattered several times in the past few months about the new breed of condo flippers in Chicago.
No longer are they buying new construction condos at pre-construction prices and then selling for a profit when the building is completed. Now, they are buying foreclosed units from the bank and re-listing the condos, sometimes days later, for thousands of dollars more.
Such is the case with this 1-bedroom at 30 E. Huron in River North.
It sold in early February after being bank owned and then was re-listed just weeks later for $66,000 more.
It has an updated kitchen with granite counter tops and stainless steel appliances (but the listing doesn’t call the kitchen “new” or “renovated” so it could have already been there in the prior sale.)
It also has carpeted floors and window unit air conditioning.
Some units in the building, which was constructed in the early 1980s, have in-unit washer/dryer but this unit does not. The building was converted into condos in 2004.
There is also only leased parking with the unit.
It is not the cheapest one bedroom for sale in the building. One short sale and one bank owned unit are both listed for less and both are under contract.
Dana Grigalunas at Prudential Rubloff has the listing. See the pictures here.
Unit #3006: 1 bedroom, 1 bath
- Sold in October 2005 for $269,000
- Lis pendens filed in November 2007
- Bank owned in October 2009
- Sold in February 2010 for $172,500
- Originally listed in February 2010 for $239,000
- Currently still listed for $239,000
- Assessments of $320 a month (includes doorman, cable, pool)
- Taxes of $3633
- No central air- window units
- No in-unit washer/dryer
- Leased parking
- Bedroom #1: 13×12
- Living room: 15×14
- Kitchen: 10×9
Let’s run through the list. Good location, good price, good assessments, plus seller has room to come down and make a profit. This will sell and make a bit of a profit, prior to the 8K deadline at the end of April.
llllllloool!!!
I used to live @ 30 E Huron back in 2000 when it was still a rental owned by Habitat.
The only thing “new” in the photos is the low-end stainless steel refrig.
The granite is original to the 1999/2000 rehab done by Habitat an it looks like the carpeting is original to 1999/2000….as is the AC unit in the photo.
Though it does look like a prior owner replaced the bathroom lighting above the mirror.
If you do want to buy in this building go for the corner 2BR/2BA…and remember no washer/dryer.
Dayum, that was a good buy.
meh updated rental IMO, good for an o/o at the initial price but you can do a lot better for 240k, like you can get AC, and W/d in unit and more Sqft too, heck probably even a lake view and a parking space for 240k.
Wow can’t believe I am saying this…I think the flipper is going to do ok.
Sonies: Which other comparable properties?
The fact that this went for $172,500 makes me interested in looking again. There might be some decent buys out there.
I saw in the red eye this morning that The Emerald lowered their pricing. Which isn’t particularly interesting except that all last year they were advertising “integrity in pricing” as a reason to buy there, claiming that they weren’t slashing their prices like other developments. It got a little chuckle out of me.
I was in a short term rental in this building many, many years ago. Nice location. No balconies. Was a little run down then but haven’t seen it since the conversion.
Good deal but be very cautious with certain buildings that do not have CA, deeded parking, and/or WD. If this “luxuries” were present, this would go for 50-100k more.
As relatively recent college grad with a semi-decent job, I would not even entertain the idea of a place like this to buy. If the seller cannot flip soon, they will be out-gunned by the hundreds of foreclosures the banks currently own and will be trickling out over the next few years.
If you are planning on investing in a foreclosure, coming from a first time buyer and recent college grad who is under contract for a forclosued unit, purchase something that will satisfy future generations…just my 100 cents
Having lived in the building for two years, here are a few of the many negatives…
1. No sprinklers.
2. It is a literal hotel (with low-class patrons). Owners are allowed to rent thier units on a nightly basis. So come summer, the lobby, pool, sundeck, grilling area are completely overrun by tourists. I’ve experienced shirtless people riding in the elevator with water literally dripping from thier bathing suits all over the floor. I’ve experienced “guests” bringing a large stereo system on to the sundeck and blasting crap techno music until midnight. Constant drunks running around the common areas.
3. Elevators are terrible. At least one of them is always broken and wait times can be 5-10 minutes… This is compunded by the tourist factor.
4. Window unit heat and A/C.
This will definitely be bought by a 20-something for a few grand under list. MJ, all those “negatives” would probably be positives to some 20-somethings I know. But I highly doubt the RE agent will mention any of these things.
That’s shocking to me that owners can rent their units out on a nightly basis – is that even legal?
My initial reaction, especially after looking at the pics (interior is not attractive) was that this price is way too high. I continued to feel that way after looking at the building floor plans and finding that this is a 717sf unit, one of the smallest in the building.
However, after looking at the property transfers for this building in the sub-$300k range over the past year, I’m confused. Other 06 units have sold for as low as $185k (not including this one) and as high as $264.5k. It seems that these 06 units either sell for around $200k or around $250k and I can’t figure out what’s going on.
I also can’t figure out how the assessments can only be $320 with a pool. I own/rent out a 1br in a lakeview high/mid-rise – my assessments are $375 and we don’t have a pool or fitness center.
I wouldn’t pay much more than $200k, but I’ll be curious to see what this goes for.
No, but I did encounter many numerous prospective buyers in the elevators and they often asked what I thought of the palce. You should have seen the look on the agents’ face when I told them about the hotel aspect.
If it’s true that you can rent out your unit on a nightly basis, then the seller would probably be better of renting the place than selling. Nice location.
How do the owners go about marketing their units for rental on a nightly basis to out of towners.
****How do the owners go about marketing their units for rental on a nightly basis to out of towners.***
http://www.google.com/search?q=rent+30+e+huron
please send me the link to the downtown $240 1/1 with parking included and a lake view – I will make an offer!
(note – I don’t consider edgewater downtown)
I own several units in the building. MJ is a bit over zealous in his comments regarding the building.
Agreed, no sprinklers in this building. If you want sprinkled building your looking for basically new construction and will pay more.
The elevators work fine with normal wait time. There was a time during the conversion that wait time were upwards to 10-15 minutes due to all the workers using all the elevators. The building is also looking into a major overhaul of all 4 elevators.
The “hotel” aspect to the building is of no real significance. Our real problem is not those renting by the night, it is those that rent to college students. The group of ladies coming into the city for a girls weekend are not the drunk overbearing people blaring their stereos with techo crap music until midnight. The problems that I have seen are by the residents themselves, heck MJ may be one of them.
As for the unit in question, it is a pretty good buy. I tried to buy it myself and flip it. It is in overall very nice condition and I believe that the new owner will make a few bucks on it. The parking alone is worth at least $30K
It’s not a bad building at all; I have lived here as a renter for almost 14 years. I lived in one corner unit for a number of years and then switched to a higher floor corner unit. It was terrible for a couple of years when they were doing the conversions; it’s quiet nowadays. The building is different as a condo building compared to when it was all rental by Habitat. I think when it was a rental building there was more of a sense of community; sounds odd but that’s my opinion. Luckily, knock on wood, my floor has been quiet even though there is one unit that is constantly being rented short term as a condotel. I mind my own business because there haven’t been any problems yet. In these hard times I can understand people wanting to make a buck, and I don’t mind as long as these condotel owners are properly screening the occupants. That’s the big question that always pops up in my mind; you could be riding the elevator with almost anyone.
Unit 5110 is also being flipped.
Current List Price: $319,770
Status: CTG
Recent close date was 02/18/2010; sold for $221,000.
Nice work!!!!!!!
Probably made a cool 50-80,000k…
I purchased 5110 for $221K. I put $40k into the unit. a total gut job. It sold 2 weeks before completion for $325K
Profit after expenses, interest, assessments, taxes and commission: $42K
Well, be warned. Monday through Friday, every week starting before summer and still going strong is banging, knocking, jackhammers and any other loud, really loud construction noise. It starts around 9:00AM and goes on until about 3:30PM. There’s no end in sight. What’s happening is the outside facade is crumbling and has to be repaired. If you have a daytime job outside the building you’ll be O.K. If you’re like me and are in the building(work from home), you’re screwed, the noise will drive you nuts. They sometimes stop for awhile, maybe when they’re showing units? LOL Then it starts all over again like gangbusters. I’m stuck here for now as moving would be too expensive. Heed my advice.