Forget Condos, Get a 4-Bedroom SFH For Under $350K in Andersonville Instead: 1637 W. Berwyn
This 4-bedroom Victorian at 1637 W. Berwyn in Andersonville has been on the market since March 2011.
In that time, it has been reduced $39,000.
The listing says that house had the same owner for the last 50 years.
Built in 1906, the house is on a 27×125 lot and has a 2-car garage.
The listing says it has “lots of charm, but needs major updating.”
It has 10 foot ceilings, some leaded glass windows and some original woodwork.
There are, apparently, hardwood floors underneath the carpet in the living/dining rooms.
There is a 39×13 second floor and an unfinished basement.
Two out of the 4 bedrooms are on the first floor and 2 are on the second.
The house is being sold “as-is.”
Is this a steal for the location- even if the buyer has to put work into it?
Theo Shaw at Baird & Warner has the listing. See the pictures here.
1637 W. Berwyn: 4 bedrooms, 1 1/2 baths, no square footage listed, 2 car garage
- No prior sale price could be found- it was 50 years ago
- Originally listed in March 2011 for $389,000
- Reduced
- Currently listed for $350,000
- Taxes of $2859
- Central Air
- Bedroom #1: 9×11 (main level)
- Bedroom #2: 9×10 (main level)
- Bedroom #3: 11×14 (second level)
- Bedroom #4: 12×12 (second level)
- Living room: 12×15
- Family room: 9×15 (main level)
what is this, torture Groove week?
I lived directly across the street from this house.
This could be a deal if you can afford to renovate. This part of Berwyn is a great street. This house is literally 1 block off Clark. I’d buy this before the condos that were featured on here a couple of weeks ago that are also directly across the street…
http://cribchatter.com/?p=10167
Now only if you could keep those senior exempt taxes. I’d be suprised if this doesn’t move soon. Seems the land alone is worth the $350.
More working-class housing a working class person could never afford. Houses like this were built for blue-collar workers.
Andersonville has really lucked out as a neighborhood. It used to be a quiet, respectable, dull, inexpensive neighborhood with no particular charms of architecture, that has managed to become trendy, mainly because so many neighborhoods like it, with cozy, fine-grained retail districts and housing close to a major rail like, have either been completely destroyed by “suburban” strip mall development, or destroyed altogether, that we’ll take whatever we can get.
But I guess it’s a pretty good deal for the money given current conditions, even if it needs about $150K worth of work, to judge by the photos.
I walked through this house a couple weeks ago. The entire place needs to be gutted and rebuilt. The stairway goes through the bathroom. The front room could get away with new flooring and some paint, and the kitchen is just old, but the upstairs and bathroom need to get down to the studs. It’s a hell of a lot of work — even if you think you can get it done for a good price, I wouldn’t call this a “steal”.
After a 150k renovation this becomes another 500k north side sfh. As such, this will likely be a candidate for a teardown with a sale in the high 200’s.
HD, I disagree. While this house isn’t in Lakewood Balmoral, I think you would have a hard time finding a nice single family (gutted and updated with all the bells and whistles without any location flaws) less than $600k or so. Duplex downs in this hood trade in the upper 400s/500s now.
This house is a steal if someone is willing to go through the headache of gutting it and some expansion.
Tear downs are far and few between in A’ville. Very tightly controlled.
“what is this, torture Groove week?”
will say the wood paneling isnt as bad as imagined, its only one wall of the four in the rooms.
as-is 350k homes are a sign of the times.
unless you’re willing to take a short lot, like 1701 farragut or 1307 winona (which is not as good of a location):
http://www.redfin.com/IL/Chicago/1307-W-Winona-St-60640/home/13399219
Russ, you’re on the high side. The duplex down across the street from this place is asking 389 I think and isn’t moving anywhere. The duplex up on Glenwood/Balmoral is asking 447. We’ll see if it gets any takers up there. The 4BR duplex down on Glenwood and Argyle is asking 429 and has been on the market for a year. It’s a desirable neighborhood, yes. But it isn’t immune to the market downturn.
That said, as a SFH, it will get a premium if someone puts good work into it. $600K is possible, but the top end.
Russ: I recant what I said earlier, it’s not a tear down.
However, here’s a similar home across the street, newly renovated, trying to sell for $565,000. Its sold (presumably unrenovated) for $350,000 in 2007.
http://www.redfin.com/IL/Chicago/1624-W-Berwyn-Ave-60640/home/12562503
“#Russ on May 2nd, 2011 at 10:33 am
HD, I disagree. While this house isn’t in Lakewood Balmoral, I think you would have a hard time finding a nice single family (gutted and updated with all the bells and whistles without any location flaws) less than $600k or so. Duplex downs in this hood trade in the upper 400s/500s now.
This house is a steal if someone is willing to go through the headache of gutting it and some expansion.
Tear downs are far and few between in A’ville. Very tightly controlled.”
who wants to send their kids to trumbull?
Another similar victorian as-is house sold in July 2010 for $306,000 about two blocks north
http://www.redfin.com/IL/Chicago/1720-W-Summerdale-Ave-60640/home/13404798
hd, w/o looking it up, that one is probably going back to the bank
roma: interestingly enough, this house was in foreclosure in 2007 when the owner bought it with a $27,000 down payment. Right now there is a lis pendens for – get this – a tax deed! No one has been paying the taxes, including the MERS registered bank, and now that the there is a tax deed case going … well … the bank is probably going to lose its collateral. What a disaster this property is.
but my point is that in 2007 near the height of the boom these old victorian fixer-uppers were selling for $350,000; and today these sellers are basically listing this at the 2007 price. Whatever, this is a joke. There’s a reason it’s been sitting for so long.
Ultimately this is a lower $200,000’s, maybe high $100’s property that some rehabber can get in, do some updating, and resell in the high $300’s or low $400’s. There is no tear down value, and the rehab value is only what a developer is going to pay.
sorry, what a rehabber would pay, and they want profit.
HD, they should have spent more money on the facade. That place is but ugly. I remember that house from when I lived there…
“hd, w/o looking it up, that one is probably going back to the bank”
Craptacular reno. The Winona house is nicer; 1624 Berwyn for maybe $450, b/c of “better” location and more reno completed (assuming inspection shows it to be well done).
What this one is worth is all about how much work it *needs*, beyond the cosmetic. Mechanicals, roof, siding, basement floor/walls/height. If that’s all *good* (doubtful),then I could see $325; if not, subtract $1.50 for every $1 of *necessary* repair/replace work to be done down to about $250, which *approaches* teardown pricing (tho, closest was 1721 Berwyn at $350 for a 47′ lot w/ teardown in Apr-10).
[necessary meaning hvac/water heater/shingles beyond useful life; old wiring; leaky basement; no drain tile; exterior painting]
How is Trumbull? And Admundsen? Don’t know enough about schools in this area. Rogers Park Montessori is right here though, which I’ve heard good things about. Anyone know more?
anon(tfo) that lot at 1721 was 47×125.
“How is Trumbull? And Admundsen? ”
Admundsen is in the running for 3d best attendance area HS (after LP and Taft, imo). Not that that is saying much. Don’t know enough about Trumbull to say.
“anon(tfo) that lot at 1721 was 47×125.”
Uh, yeah, that’s what I wrote–“a 47? lot w/ teardown”.
And “approaches teardown” means, to me, that the structure no longer has any real positive value, and the tradeoff of costs v. offer price no longer works, because you’d be putting too much into the worthless structure. Need then to get it for basically teardown and decide to reno (on the relative cheap) anyway.
my first thought was “a 4 bedroom in Andersonville for less than $400K!” I think this is a deal for someone IF it passes inspection without any major problems.
I’d take a chance on it if it were in one of my preferred nabes though I’d have to have a good sense of how much it would cost to update to my liking and that would be factored in my offer.
My second thought was, if I’m gonna update a home, I could be better off updating that Beverly victorian that Chris M posted last week.
HD, you gotta look on the bright side, man. Chicago real estate ain’t so bad. In other, less livable cities, this is all 1 million dollars gets you, apparently:
http://debatehub.cspan.org/uploadedImages/Content/Images/AP/bidLaden_compound.jpg.axd?maxwidth=645
to be fair, though, that was 2005 bubble pricing…
LOL roma
“Chicago real estate ain’t so bad. In other, less livable cities, this is all 1 million dollars gets you, apparently:”
I had the same thought, after hearing the $1mm and “luxury” repeatedly.
Where are the stone counters and cabinet-front (or is it carbon-fiber) appliances?
“Tear downs are far and few between in A’ville. Very tightly controlled.”
I didn’t realize demo permits were issued by neighborhoods and not by the city?
I have never heard of any issues tearing down a non-historic SFH in the city of Chicago.
“More working-class housing a working class person could never afford. Houses like this were built for blue-collar workers. ”
I’d venture to guess that 95% of Chicago was built for the same purpose, including the vast majority of Lincoln Park, for example.
I know this is off-topic but I can’t find the orignal post where it was discussed. Did anyone go see the Clinton open house yesterday in OP? What’s the deal with the place?
Sorry for the change of topic. 🙂
That was here: http://cribchatter.com/?p=10403#comments
Groove said he was going to go until he found out it was across the streets from Brooks.
I have taken clients to see this house. It is a tear down. It is a good location but kind of far from the L.
It is such a beautiful house on the outside. What makes it so bad as to be a teardown?
Amazing that there is so much interest in lower priced homes; yet there are so few to go around….your clients (with an s) have looked at this house, despite I’m sure you informing them of the tear down nature…yet the $350,000 continues to be a draw for many.
“#Mitch G on May 2nd, 2011 at 7:56 pm
I have taken clients to see this house. It is a tear down. It is a good location but kind of far from the L.”
“Groove said he was going to go until he found out it was across the streets from Brooks.”
it wasnt just a simple school in the middle of a lot with a wide lawn from sidewalk to curb.
it was a modern four story monster built rig up to lot line right on the side walk.
i dont think one of those balconies would clear a view of anything but the school. i bet the view was sweet before the school was built/added-on
Chris M,
I know you are all over the cheap Evanston and OP homes, so what are your thoughts about this one (in Willard)?
http://www.redfin.com/IL/Evanston/2632-Central-Park-Ave-60201/home/13773990
Speaking of the cheap homes, look at the redfin tour notes and they gravitate towards the lower end modestly priced homes.
Evanston house: $2,400 a month for a 1 shower house with no central ac?
“Evanston house: $2,400 a month for a 1 shower house with no central ac?”
It’s funny- but this is considered a “deal” now (or at least affordable) in these certain desireable neighorhoods.
The thinking goes- “it’s better than a condo for the same price.”
Roma – It doesn’t strike me as a particularly amazing deal, although from my research I know that Willard is a fantastic school. The lot size is appealing. However, the home doesn’t have any special charm or features that really stand out to me. And, personally, I’m not a fan of vinyl siding.
2619 Central Park Ave sold as a short sale December for $350k. That place had 1 bathroom and a smaller lot, so it would indicate that this place should sell for at least that much. That being said, I’d like to see it in the low $300s.
At that price point, I’d rather have this: http://www.redfin.com/IL/Oak-Park/643-Woodbine-Ave-60302/home/13272965
And here’s another place that just went under contract within a week of being listed: http://www.redfin.com/IL/Oak-Park/740-Woodbine-Ave-60302/home/13272996
Does anyone else think this looks like Archie Bunker’s house?
This house was probably built for archie bunker. Now that the neighborhood has ‘gentrified’ it’ll become a $500k home after the granite countertops are installed.
643 woodbine looks like a pretty nice place for the money. id be tempted to go look at it myself (im a sucker for pocket doors) if i wanted to live in OP.
Chris M, since it looks like it’s been listed on and off the market for 4 years, have you been in there? has the price just been way too high or are there other issues?
“This house was probably built for archie bunker. Now that the neighborhood has ‘gentrified’ it’ll become a $500k home after the granite countertops are installed”
Not being sarcastic, but that’s all it will take to get this one sold……granite countertops & stainless steel appliances (you forgot about those). Forget about the old lead pipes. They’ll just get bottled water from Starbucks and see/be seen at the same time.
Roma – Seller is chasing down the market. First listed it for $540k in 2007. There was only 1 bathroom at that time.
Was last purchased in 2001 for $340k.
I haven’t been inside the property yet.
I should probably start posting these things on my website.
Wow…talk about strange timing. 643 Woodbine was active a few minutes ago. I refresh my search and it’s suddenly under contract.
“Was last purchased in 2001 for $340k.”
Err…meant $320k.
The Crib Chatter Effect.
”
Wow…talk about strange timing. 643 Woodbine was active a few minutes ago. I refresh my search and it’s suddenly under contract.
“
Now Pending-let’s see what it sells for.
Andersonville is hot.
I bought this house. I saw it on the MLS and then saw it on Crib Chatter which made Me take a serious look at it again. Same owner for over 50 years, and the house is dated but pristine! Very well maintained,
A full renovation is planned. House was not a steal, but I think it was well priced for what you get. I was actually very suprised that someone did not buy it to live in right away, and renovated a little bit at a time. Certainly a better bang for your buck then a 3 bedroom condo that would be priced about the same in the area. Then again it does not have stainless appliances and granite counters………………..Yet!
Thanks Crib Chatter for featuring this place. Your story gave me the push to go take a closer look, and obviously I liked what I saw. The Seller’s Realtor told me she had a showing nearly every day it was on the market, so maybe there is some hope for this real estate market…………
“I bought this house. I saw it on the MLS and then saw it on Crib Chatter which made Me take a serious look at it again. Same owner for over 50 years, and the house is dated but pristine! Very well maintained.”
Congrats johnnybala! A Crib Chatter success!
And thanks for checking in with an update.
Sold price: $312,000
Interesting that dozens of people must have looked at it yet no one wanted it even for this price. Glad to hear you’re going to renovate it. The problem for most buyers is that they don’t have the vision or the money to do so. So, yeah, they want that granite and stainless steel or forget it!
Jennifer- instead of buying a condo- you could have bought this house in Andersonville instead. People have to keep an open mind about finishes etc.
Congrats indeed, Andersonville is awesome.
If it doesn’t make you insane, please let us know what they re-jigger the taxes to, the current ones seem to reflect the long-term homeowner and senior discount.
I guess it also shows that long-term owners have more wiggle room on pricing – as in this case a $350,000 listing sold for $312,000. There’s a lot of sellers who couldn’t lower the price very easily by 11% like this one due to the mortgage(s) they have outstanding. I’m assuming the buyer is going to make the 1/2 bath a full bath in the renovation, this one has a lot of potential.
Mine was not the only offer they had by any means, just the most attractive I guess. I waived most contingencies since this is a renovation project.
I know the taxes will go UP, that is expected when buying from a long term owner. But it still will hurt a little.
Plans are not finalized, but adding at least 1 bathroom and finishing basement are for sure. High ceiling in the basement is a big plus. And it is an over sized lot (OK 27 x 125, but still).
One year of condo assessments would pay for granite, another year or two would pay for stainless appliances. For Me, a single family home in the city is a no brainer, though I can see the advantages for condo ownership for others.
Exactly our thinking. Where else were you looking? Did you find the homes were more reasonable across the board in Andersonville or was this a steal/exception?
“One year of condo assessments would pay for granite, another year or two would pay for stainless appliances. For Me, a single family home in the city is a no brainer, though I can see the advantages for condo ownership for others.”
Hm, I always kinda thought of it as one year of condo assessments would pay for (maybe a litter more than) one year of maintenance on a house — averaged out over many years, of course. I’ve only lived in really old houses, though.
Congrats on the buy, the $300,000 range seems to be the price point for buyers renovation projects (and lower for rehabbers who need to price in profit).
My question: 1) how did you get the funds to pay for renovation (cash on hand, 203(k) loan, slowly over time) and 2) how much do you intend on spending to add the bathroom, finish the basement and renovate the kitchen?
Thanks!
I did not anticipate someone buying this and rehabbing it themselves. But back out the developers profit and the lower $200,000’s became a sale at $312,000. Factor in the ability to make your own customizations and the lack of properties on the market (I saw listings are down in chicago 30% since 2008) and the price starts to make more sense.
“homedelete on May 2nd, 2011 at 10:57 am
Ultimately this is a lower $200,000’s, maybe high $100’s property that some rehabber can get in, do some updating, and resell in the high $300’s or low $400’s. There is no tear down value, and the rehab value is only what a developer is going to pay.”
“I did not anticipate someone buying this and rehabbing it themselves.”
Of course you didn’t.
You also don’t see this location as “better” than the greater-IP areas you pay more attention to, so you missed the fact that others do, and will pay more for the same thing here.
This would likely have been $100k+ less were it in greater-IP.
no anon(tfo) I did not miss that this might be a more desirable area.
I think what you tend to miss out on is that the DIY-weekend warrior approach is popular for a reason, you make improvements as your budget/free time allows.
Out of my anecdotal sampling of a few dozen fellow UIUC grads who bought housing since say 2000, I would say it’s 70/30 homes/condos, but everyone who bought a house bought one that they planned to work on, from near-full rehabs (no guts) where they could still live in the building, to ones where people tackle a room at a time.
We’re largely sitting pretty compared to many of our peers, I don’t know anyone underwater & most of us have significant equity and homes we actually plan on being in for a long time. Besides buying within our means, I think the key is those of us who bought houses did so with family planning in mind.
“I did not anticipate someone buying this and rehabbing it themselves.”
“I did not anticipate someone buying this and rehabbing it themselves.”
Why are all of your predictions so far off, and always have some reason after the fact to justify them?
I’m not 100% on my predictions, no one is, but I’ve got a pretty long track record of accurate pricing on cribchatter.
Maybe you should pay closer attention to the times I am right rather than point out the few times I am off.
“chukdotcom on June 8th, 2011 at 9:56 am
“I did not anticipate someone buying this and rehabbing it themselves.”
Why are all of your predictions so far off, and always have some reason after the fact to justify them?”
“no anon(tfo) I did not miss that this might be a more desirable area.”
Then why were you proposing that it would sell at the same price that places in BFE (relatively speaking) sell for?
High 100s? Maybe high?
“Maybe you should pay closer attention to the times I am right rather than point out the few times I am off.”
I am. Can you please tell me the last time you were even close? All the ones I have seen in the last few months have been off by 25%+
“I’m not 100% on my predictions, no one is, but I’ve got a pretty long track record of accurate pricing on cribchatter. ”
if by accurate you mean within 50% of the actual sales price, yeah… sure
you are almost always way off to the low side
johnnybala, congratulations and welcome to Andersonville! I’m happy to hear you will be renovating your house. You’ll find a community of friendly like-minded neighbors here who care about their homes and the neighborhood.
If I had to describe the people who live around here, I’d say there are a lot of families and a lot of dog owners and most are very good looking for some reason!
A week or two ago jjj attempted to call me out and asked something along the lines of “when was the last time HD was within 20%?” and I responded “unless there’s some new math, my prediction was within 20%”.
The one I enjoy the most (and I cannot find the link at this time) was the 444 w belmont (iirc) I predicted correctly; I also take pride in calling foreclosures (that the aldine iirc) before they happen.
Now to you:
What predictions have you made?
PS jonnybala,
You can get a ton of cleaning supplies and kitchen stuff at the Dollar Tree at Berwyn and Broadway in the strip mall. Everything’s $1. Got a pail, broom, scissors, oversize wine glasses, dishes, brand name cleaning supplies, everything for $1 each.
“What predictions have you made?”
I predict you will be off by 25%+ on all of your predictions.
And I’m not the one claiming a good track record. You are. Yet you have no evidence of that. And being within 20% is nothing to brag about.
Bottom line, you think you know more about the housing market than you do. You think everyone is a flipper. Or everyone is buying with 3.5% down, or no one will buy just because they want a place to live and raise a family, etc.
And your horrible predictions are proof of your lack of knowledge.
johnnybala – I see you obtained a conventional loan for the purchase (per the MLS). Were there any issues with the condition of the property in the appraisal or when the file went into underwriting? It appears that it was liveable so it may not have been an issue.
“I also take pride in calling foreclosures (that the aldine iirc) before they happen.”
Even a broken clock is right twice a day. You claim that every short sale will end in foreclosure. And statistically speaking, you are bound to be correct a certain number of times. Many short sales do become foreclosures.
The simple fact that you thought this property will sell for “high 1’s, low 2’s” shows your inability to understand the CURRENT real estate market. Will this sell for high 1’s in the future? Dunno, maybe. But that’s also not the point.
“And your horrible predictions are proof of your lack of knowledge.”
Nah, just proof of a cognitive bias.
And both sides of the “does HD make good predictions” argument have unadjusted confirmation bias issues.
The agent remarks for this house are interesting: “Habitable, but in need of updating/repairs.Quirky layout: stairway to 2nd floor is accessed through door in 1st flr bathroom!”
Don’t mind me! Just going upstairs!
Congrats to JonnyBala! I love this location and think it was a great pick up. I was suprised that it didn’t go right away, but I think others are right in that lots of home owners are looking to sell with the least amount of hassle i.e. contingencies possible. and if they can afford to do so, they wait for the right offer.
Thanks for the congrats and welcomes! I love the neighborhood too!
As a matter of fact this is the second time I have bought a house on Berwyn in the last few years! The last one was in the 1900 block and is also a very nice street, but very sleepy.
Let see if I can address some of the questions people asked:
“Hm, I always kinda thought of it as one year of condo assessments would pay for (maybe a litter more than) one year of maintenance on a house — ”
*I don’t disagree with that, but for ME, a single family home is a better value. Most big ticket jobs (roof, siding, HVAC, windows etc) also improve the value of your home. Not always true with condos. But your mileage may vary….
“My question: 1) how did you get the funds to pay for renovation (cash on hand, 203(k) loan, slowly over time) and 2) how much do you intend on spending to add the bathroom, finish the basement and renovate the kitchen?”
*1) I think I will keep my finances to myself, but I will tell you that I plan on doing all renovations right away, and I don’t plan on moving in, it is an investment. 2) Plans are still in development so no budgets have been set. There are two ways this building could go, a near full gut rehab, plus dormers etc. Or paint, re-do hardwood, new baths and Kitchen, siding etc. I am sure the final plans will be closer to the first option, but then again………
“Exactly our thinking. Where else were you looking? Did you find the homes were more reasonable across the board in Andersonville or was this a steal/exception?”
*I also looked at Bucktown, West Bucktown (No such place really exists) Uptown(on paper this neighborhood should take off, but in reality I am not ready to gamble) And I found some real bargins in, I guess North Andersonville, near Ashland and Hollywood. If/when the city builds a park where the Edgewater Hospital is (referendum passed in Feb.) I think that will be a great location. Short term there? Unsure. But it is much cheaper then 4 blocks south. Andersonville proper, just seems like a safe sure bet.
Let me try and answer some other questions :
*There were no questions at all about condition in terms of appraisal/underwriting. It is perfectly liveable right now. (Central air, newer washer and dryer, 10 year old appliances). Just solid and well maintained, but dated.Basement is high and dry! Seriously for once, the Realtor UNDER-sold the livability of the house.
*You do go through the downstairs bathroom to get upstairs! That will change obviously. Could be super embarassing/uncomfortable for everyone involved.
*In terms of price predictions on this place I will say this: I did extensive research on this and other areas of the city. I would say I spent $4000 to $7000 over what I think is the bottom price you would pay for a house in this location in this condition, and it is worth it to me and here is why: It is so original, well maintained and dated that there is not much chance of hidden problems. The garage is perfect, all the concrete work is solid, all the potential problems in the basement are not covered up by a DIY half rehab. It is all out in the open to see. No Weekend Warrior upgrades, half assed electrical work, unfit plumbing. What you see is what you get, and to me that is worth a 2% premium over the rock bottom price, to minimize surprises and not have to undo previous work.
I think it is just good fun to estimate prices thing will sell for eventually, on a place like Cribchatter.com. I used to work for a major Movie Studio on a former life, And I think the famous quote about Hollywood from “Princess Bride” screenwriter William Goldman applies to the near future of the local real estate market: “Nobody knows anything”.
“And both sides of the “does HD make good predictions” argument have unadjusted confirmation bias issues.”
I blame my lucky quarter for the same damn thing!
Without ever having been there and only vaguely knowing where it is I believe Berwyn to be overpriced.
This is because of their massive advertising campaign near public transit and downtown locations. If they can convince people who already live in high-cost areas to move to Berwyn and pay similar prices, it must be overpriced.
Come to Berwyn! It is just another suburb!
Berwyn! The just another suburb that is “the center of it all”!
“More working-class housing a working class person could never afford. Houses like this were built for blue-collar workers. ”
Ding! Ding! Ding!
But guess what? There’s no light at the end of the tunnel for this valuation insanity until downpayments become meaningful and interest rates aren’t near 4% for a 30-year (and zero at the Fed level).
Our policy makers aren’t making significant progress on either of these.
Uh Bob, I was talking about Berwyn the street, not Berwyn the town.
“until downpayments become meaningful and interest rates aren’t near 4% for a 30-year”
You had me until the ‘and’
btw johnny.
1- Congrats.
2- Enjoy ripping apart the kitchen. I would have so much fun doing that myself.
Sabrina we actually did look at a lot of places that needed work, but ultimately we didn’t have the cash to put into making them livable up front and we couldn’t be sure we would have the cash in future to put into a decent renovation. A move in ready condo with reasonable assessments at $350k is not going to have the same monthly cost as a $350k house that needs a lot of work. We preferred to buy something smaller that we felt comfortable with rather than putting all our cash into what would have been a bigger gamble for us.
Like I’ve said before it’s not a lack of vision that is holding people back from these places – it’s cash.
I agree Jennifer. I’ve seen it over and over again. If anything needs to be done (heck- even just new appliances)- people will balk at it. They simply don’t have any money for renovations (and lots of people don’t want to do them either.)
We’re putting about $3,000 into making our new place livable before we move in (needs a couple of appliances and a new patio door). That’s about as much as I was willing to spend on top of all those closing costs.
Right. I know someone who bought a place specifically for the paint color (so they wouldn’t have to paint when they moved in.)
So much for buying to be able to “paint the walls.”
Nobody knows anything is a movie about a scriptwriter who visits a number of people asking for help with her script and they all give biased and often dubious advice. Nobody knows anything is true and now that you’ve put money on the line to rehab the place as an investment, the phrase is even more poignant.
We’ll find out when it comes back on the market, right Homedelete? (since he said he’s never going to live in it.)
Oh I just noticed it’s Berwyn street. I must’ve been heatsroked..
He might be rehabbing to rent it.
There are plenty of 2, 3 and 4-flats for sale for around the price of this house- probably even just a few blocks away in Edgewater etc. If you’re going to rehab to rent it- wouldn’t you just buy one of those where you could actually make a profit in renting it out?
Who buys a SFH to rehab and rent out?
Okay- I had to look.
You could just buy this 2-flat a half a block away (completely renovated)- and rent out one or both units.
http://www.redfin.com/IL/Chicago/5317-N-Paulina-St-60640/home/13405153
Whether Johnnybala is buying the home as an investment or a primary residence, he is going to improve the property which will be positive for the neighborhood and property values. Plus it sounds like he is going to do a quality renovation with thought to preserving the original details.
Thanks Milkster!
That is of course my plan.
I am not renovating it to rent it out.
Btw, a recession is a great time to do renovations if you cannot sell and move. Also, people keep telling me contractors are hungry so it’s easier to find someone to do the work and to get a discount on the price. Although I’m finding the good contractors are still pretty busy and hard to book.
“Although I’m finding the good contractors are still pretty busy and hard to book.”
its the side job guys that are scrounging and the big contract guys that are slow.
the middle and top small/medium sized guys have been working steady through this depression
And Homedelete, I had to IMDB “Nobody Knows Anything” That cast is certainly a random collection!
Also that’s Me, ‘Mr. Poignant’.
“Who buys a SFH to rehab and rent out?”
Wasn’t likely in this case, but I’ve seen it happen. For example, 605 Carpenter in Oak Park was purcahsed last year for $250k and then put on the MLS as a rental months later as a rental. I agree that it doesn’t make nearly as much financial sense, generally speaking, as renting a multi-unit building.
I’ve also noticed people interested in buying condos cheaply as “investments”. There’s an Oak Park real estate forum that Russ and I contribute to and one of the recent posts was a woman interested in buying a low priced condo in Oak Park to rent out. I tried to talk her out of it, as I don’t think that makes much sense, but I’ve seen others apply the same logic to SFHs.
Also, it is possible to buy SFHs with a 80% LTV loan that are significantly below rent parity. The PITI for my 3BED SFH in Oak Park is roughly $1,800-$1,850 per month and I can rent it out for $2,400 per month plus $100 on the third garage spot. The taxes are a bit higher without the homeowner exemption and insurance is also slightly higher when the owner does not live in the property, but it would still be a “profit”. So, again, I don’t recommend that people buy SFHs for rental purposes, as they are inherently suited for owner occupancy, but some people do it and “profit” is possible.
I never said it was a good movie! But it is pretty poignant, I was wrong on the price, and since nobody knows anything, I wish you the best of luck!
Oh, and that place on Paulina is pretty awesome.
Back on the market today, apparently rehabbed, priced over 600k.
Already under contract…..
“Back on the market today, apparently rehabbed, priced over 600k.”
Good catch dahliachi. But don’t you think they already had a buyer for it? It seems pretty obvious to me. There’s no pictures and there’s really nothing to the listing either. So it never really went back “on” the market- so to speak.
I’m glad some of these old frame houses are being updated.
Actually Sabrina, He did not have a buyer for the house. John so happened to be working on the porch one day when my realtor and I were looking at the property a few houses east. On our way back to my realtor’s car, he asked us what we thought about the house we saw and we gave him our opinion. My realtor remembered 1637 when it was originally listed and asked him if he owns it, lives in it, and if he did anything regarding the strange configuration of the stairs that led to the second floor. John said that he bought it to renovate it and that he was the developer. He told us he reconfigured the stairs with the help of an architect. My realtor asked to see it and inquired whether or not he was going to list it. He told her very soon (This was in Nov 2012). We made an offer a few days before it was scheduled to be listed, he fortunately accepted the offer and now we are living in a great house in an awesome neighborhood. 🙂 We were lucky enough to be in the right place at the right time. If we would have crossed the street a house or two earlier, we may not be there today. He did a terrific job renovating it and we enjoy it tremendously.