Flipping a Foreclosure: A 2-Bedroom Loft Listed $94,900 Higher 3 Months Later at 1528 S. Wabash in the South Loop
We’ve been chattering about this 2-bedroom loft at 1528 S. Wabash in the South Loop for years.
We watched it go from a “normal” listing, to a short sale, then to a bank owned listing.
Guess what- it’s back!
In our last chatter in December 2011, the bank had dramatically reduced it to $169,900 (and that included parking.)
See our prior chatter and interior picture of the kitchen here.
It finally sold in March 2012 for $155,000 (including the parking.)
The new listing says it has “new stone (quartz) counter tops.” From the pictures, it appears those were replaced in the kitchen and the bathrooms.
There also appears to be a new tile backsplash in the kitchen.
But otherwise, there doesn’t appear to be any big renovations done to this unit. The kitchen and baths were intact when it was a bank owned unit. The prior listing even had stainless steel appliances.
The 1200 square foot unit with exposed brick has come back on the market just 3 months later for $94,900 more than the previous sale.
Is the market hot enough that this unit can be flipped for a big profit?
Buyers love “new”.
Scott Fey has the listing. See the pictures here.
Unit#608: 2 bedrooms, 2 baths, 1200 square feet
- Sold in January 2004 for $268,000
- Originally listed in October 2008 for $299,900 (parking is extra)
- Reduced
- Was listed in February 2009 for $284,900 (parking was $34,000 extra)
- Reduced several times
- Was listed in May 2009 for $261,900 (parking was $28,000 extra)
- Withdrawn
- Listed in April 2010 for $289,900
- Reduced
- Was listed as a “short sale” for $214,900 (plus $25,000 for parking)
- Withdrawn
- Bank owned
- Originally listed in October 2011 for $229,000 (included the parking)
- Reduced
- Was listed in December 2011 for $169,900 (included the parking)
- Sold in March 2012 for $155,000 (included the parking)
- Re-listed for $249,900 (includes the parking)
- Assessments of $433 a month (includes heat, gas and cable)
- Taxes are now $4032 (were $3656)
- Washer/Dryer in the unit
- Central Air
- Bedroom #1: 14×12
- Bedroom #2: 12×11
- Living room: 14×18
- Kitchen: 14×9
HAHA! Hilarious. The kitchen looks about the same. If they were changing the counters, a light/white quartz would have been nicer and brightened up the place.
They probably should have kept the granite counters and spent the money on the bathroom floors or painting/staining the cabinets.
There’s a sucker born every minute…
I guess all you can say is kudos to this flipper if they make that much money.
Its absurd and ridiculous, but they had the cahones to try and pull it off.
I wonder if it will appraise high enough for buyers to get a loan for asking price. Wouldn’t this be a comp of itself?
What is the point to replacing the granite counters with quartz? Couldn’t you have replaced the overmount kitchen sink with an undermount without spending all the money on the counters?
I’m not sure this is worth $250k considering the last sale, but I definitely feel it is worth more than $155k.
“I guess all you can say is kudos to this flipper if they make that much money. ”
Ignoring transaction & rehab costs they’re asking for 95k higher with a cash burn rate of $770/mo, also ignoring the financing costs. Yeah…good luck with that flipper.
Bob, you are fairly accurate in your post, but there looks to be no mortgage, so no financing costs. I’m sure they didn’t spend anywhere near $95k on rehabbing either….
Can I get a 2012? 🙂
clio (January 10, 2011, 1:50 pm)
I still don’t understand why is it that people judge the value of a place based on what someone paid for it. Isn’t market value about what someone is willing to pay for a place?
I get this all the time with one of my properties I am trying to sell. I bought it as a foreclosure in 2008 for 550k, and put it back on the market at 599 (reduced from 699). People always tell my realtor that the price should be 449 because prices have decreased 20% in the area. Of course, they don’t realize that the previous sale was for 1 million in 2004. Why don’t they use this number?!! WHY? WHY? I tell you – it is psychological and stupid.
clio (August 30, 2010, 2:29 pm)
This seems like a very good deal. I know people disagree w/me, but it really shouldn’t matter what the person paid for the property. Don’t judge the current value based on the seller’s potential profit/loss. That is plain stupid. What if the seller bought it for a 100k as a foreclosure, does that mean that it is only worth a 100k now? On the other hand, what if the seller bought it for 400k? Does that mean it’s worth closer to that amount? Just a stupid way to look at things.
All kidding aside, I DO worry about the South Loop.
The amount of inventory
The amount of shadow inventory – personally know lots of people renting out their units
The health of HOAs
On the plus side, if I gave up and went to burbs I wouldn’t mind having a place in the South Loop for late nights at work and for weekends
Update: sold for $245k – market is hot. http://www.redfin.com/IL/Chicago/Undisclosed-address-60605/home/12694412