Get a Lakeview 2-Flat For Under the 2003 Price: 1622 W. Addison
This 2-flat at 1622 W. Addison in Lakeview has been on the market since May 2013.
Built in 1902 on a standard 25×125 lot, it has a duplex up owners unit and a first floor rental.
The units are the following:
- Unit #1: 2 bedrooms, 1 bath, central air, rent of $1700 a month
- Unit #2: 3 bedrooms, 2 baths, washer/dryer, rent of $2300 a month
The kitchen in the owners unit has white cabinets and granite counter tops.
The listing says the property was rehabbed 10 years ago.
They each have separate air and there is a 2 car garage.
The gross rental income is $48,000.
It grosses $14,000.
It’s been reduced $50,000 since May.
The property is now listed $12,500 under the 2003 purchase price.
Is this a deal?
Jeff Lowe at Prudential Rubloff has the listing. See the pictures here.
1622 W. Addison: 5 bedrooms, 3 baths, 2 car garage
- Sold in December 2003 for $561,500
- Originally listed in May 2013 for $599,000
- Reduced
- Currently listed at $549,000
- Taxes of $11,000
- Gross rental income $48,000
- Gross: $14,000
It’s interesting that no one commented on this property. Investment properties were hot in 2011 and 2012 but I really get the feeling that they’re not any longer.
Anyone else seeing that?
I did not comment because I was not interested. I wish you’d feature some of 1201 or 1211 S. Prairie units (MPW and MPE) that are selling like hot cakes. The units I liked and once were desperate to sell at low 600s are now selling close to 700s, see http://www.redfin.com/IL/Chicago/1211-S-Michigan-Ave-60605/home/39570984
I am a long-time lurker on cribchatter and would like to move to Chicago next year with my family and my mother, who is retired. My hope is to buy a two-flat, with my mother in one unit, and my family in the other. I have been monitoring the two-flat market for several months and have noticed the prices are creeping back up. This address is a decent price and a good location in terms of transit. The units appear to be in good shape, although they lack charm for my taste. I am not too knowledgeable on whether this is a good deal in terms of being an investor, but, from my limited perspective, I think the price does not become a deal until it is below $500,000.
It’s also the middle of summer and people are taking vacations, out of the office, not on the computer. You’ll probably get more comments today on your posts, it’s all dreary and rainy outside.
“I did not comment because I was not interested. I wish you’d feature some of 1201 or 1211 S. Prairie units (MPW and MPE) that are selling like hot cakes.”
I don’t feature these because, as you said, they are selling like hot cakes. There’s not a lot of point in discussing things under contract because someone has already bought them. What’s there to talk about? We’ve chattered about these buildings in the past. It’s new construction. It is what it is. If you don’t want to pay $700,000, look elsewhere because clearly there are plenty of people who are now willing to pay it.
Inventory is so low it’s hard to post on anything in the South Loop right now.
“It’s also the middle of summer and people are taking vacations, out of the office, not on the computer. You’ll probably get more comments today on your posts, it’s all dreary and rainy outside.”
I don’t care if people don’t comment. That’s why I’m switching over to the forum site so people can talk about whatever they want.
People don’t care about a normal housing market. As I’ve said before, they want to see the train wreck. So when there isn’t one, they’re bored.
“I did not comment because I was not interested. I wish you’d feature some of 1201 or 1211 S. Prairie units (MPW and MPE) that are selling like hot cakes.”
I sent you a couple of listings in the same building a few months ago and heard nothing. One of them closed Monday. granted they are non-GZ but I thought the huge price difference for similiar units two floors apart would cause some chatter. Or maybe not.
“The gross rental income is $48,000. It grosses $14,000.”
I only took one semester of accounting before deciding it was mostly common sense and simple math unless you want to be an actual accountant, then you have to learn a bunch of terms to refer to things. So, someone is going to have to explain this to me like I’m five.
The pictures on this place were pretty blah too. Hard to tell what is first floor and second floor and the layout, etc. it is hard to comment on a place that the pictures make it hard to figure out. It is nearly as difficult as with no pictures.
“So, someone is going to have to explain this to me like I’m five.”
Ditto.
“have to explain this to me like I’m five”
I am guess the previous owner had a mortgage, so, they are getting 48,000 income, but had to pay 34,000 in mortgage and tax a year, so gross 14,000 a year, but my mind reading skills are little low today.
11,000 in tax a year, so, 23K mortgage payment = just shy of 2K a month for mortgage, which is about a 300K initial mortgage.
Depreciation costs are gonna take a big old bite as well.
“I am guess the previous owner had a mortgage, so, they are getting 48,000 income, but had to pay 34,000 in mortgage and tax a year, so gross 14,000 a year, but my mind reading skills are little low today.
11,000 in tax a year, so, 23K mortgage payment = just shy of 2K a month for mortgage, which is about a 300K initial mortgage.”
uh i think they are confusing netting and grossing
“23K mortgage payment = just shy of 2K a month for mortgage, which is about a 300K initial mortgage”
At 6 and 5/8s. Who, with equity in their property, is paying that much? And, anyway, unless the mortgage is assumable, why would anyone care what the seller’s financing costs are?
Also, the amortizing principal does not eat into your gross income on an investment property.
What I’d take it as is that they make $48k in rent, but spend $34k of that on bills, maintenance, taxes, etc. Seems like a lot of expenses though, at least for an annual amount. I could see one year spending that much, but $34k each year seems like a lot, especially if the roof goes one year, that wipes out your $11k profit from the last two years most likely.
Just looked it up on Redfin.
Fl. 1 apt rents for $1,700, fl. 2 for for $2,300. Gross expenses are $14k. NOI is $34k. All according to listing.
“What I’d take it as is that they make $48k in rent, but spend $34k of that on bills, maintenance, taxes, etc. Seems like a lot of expenses though”
If they spend $34k annually on taxes, insurance and maintenance, but excluding a mortgage, the place is a money pit. That simply can’t be true.