Get a North Center 2-Flat for Under $280,000: 2014 W. Addison
This vintage 2-flat at 2014 W. Addison in North Center has been on the market since June 2010.
It is a short sale and has been reduced $119,001 in that time.
The price has also been lowered $10,000 every week for the past several months, with no takers.
The units are as follows:
- Unit #1: 3 bedrooms, 1 bath, no current tenant
- Unit #2: 3 bedrooms, 1 bath, no current tenant
There is a 2-car garage on a standard 25×125 lot.
It doesn’t look like the units have central air.
The listing says there are some newer windows.
Located less than 2 blocks from the Addison brown line stop, is this a deal?
Anah Choe at Direct Realty has the listing. See the pictures here.
2014 W. Addison: 6 bedrooms, 2 baths, 2 car garage, 2-flat
- Sold in August 1990 for $143,000
- Sold in September 2005 for $485,000
- Originally listed in June 2010 for $399,000
- Lis pendens filed in July 2010
- Numerous reductions
- Currently listed as a “short sale” for $279,999
- Taxes of $6861
- No central air
I’d find it hard to live there as is but the price is starting to get attractive to try to convert to SFH, with the help of professionals.
Anon,
what is the price of land over here, 279k seems pretty close (if the bank would even take this price)
“what is the price of land over here”
Land values largely got inflated by speculative demand on behalf of home-builders making 3-6 flats. Now that their business is imploding due to those overpriced condos never being worth their ask prices on an intrinsic/cash-flow basis, land values are likely returning to reality.
Me for 289k I’d expect more: like tenants. But maybe for someone it would make sense. It would make a lot more sense to sink the $ into it to make a turnkey SFH, IMO.
“what is the price of land over here, 279k seems pretty close (if the bank would even take this price)”
It’s cheap enough to attract a cash developer.
I wouldn’t want a SFH on Addison, even tho this is overall an okay stretch for a majorish street.
Current ask should be able to cashflow, if the units are in rentable shape as-is.
I’d pass on a SFH on Addison and Damen. While I like the area it is not my SFH dream street.
It appears to be an ok structure and is a solid location for a rental property. My thought is that someone with some cash will pick this up for 250-275 and put in less than 50K to update with basic windows, kitchens, and baths. I would need to see it in person but my initial read is that the updated units should rent for $1500-$2000 per unit for a decent 3/1 with one garage spot allocated per unit. With a 15 year mortgage that investment could cash flow for a small unit owner.
Perhaps in 10 years when there is some built up equity and reduced loan balance they could attempt a gut rehab. At that point they could also consider a tear down for a SFH or new multi-family structure.
SFH seems like a long shot at this moment but with the right buyer anything is possible.
“SFH seems like a long shot at this moment but with the right buyer anything is possible.”
Only as a GIY project. This is one of those “if you could end up with a SFH for ~$400k all in, it’s a good deal” locations and structures.
3/1 at 3800 N. Damen, right around the corner from this place.
$1,350 a month.
A handful of 3/1s other are for rent in the $1,500 range.
http://chicago.craigslist.org/chc/apa/1960338393.html
I say it sells goes under K in six weeks or so for the low $200,000’s. And that’s a good thing. That’s more than a 50% off sale. I lived in a building right around the corner on Damen between 2002-2004 that sold for $450k as a tear down on a 25×125 lot.
GIY project?
goyism? Gawd help me? give me a break I’m all in? 🙂
I really don’t know.
help with the term?
and I am guessing that GIY is different than DIY vs. a typo (but if it is a typo, I’ll crawl back under my rock)
—
G77: sent you mail
“I say it sells goes under K in six weeks or so for the low $200,000’s.”
As I noted, if it’s rentable as-is, and 1500 (w/ parking) is plausible (which your craigslink shows it is), then it cashflows nicely at the current ask. If (again, if rentable as-is) it goes for the low 200s, then someone’s going to do quite well owning it, even if *every*thing you say comes true.
Well both units are empty and the place isn’t selling. So… It’s pretty unlikely these units are rentable as-is for $1500 a month.
The cash flow issue is why the bank will try to hold their price and believe that it is still worth $250+. When they run the rental comps it suggests that the property is still worth more than the low $200’s. Though I am not an expert in this neighborhood I believe that a 3bedroom walkup with parking slightly east of here (in drunk walking distance to the bars of Wrigley) easily grabs $1800 from some hard living 20 somethings. Not my favorite tenant choice but they are typical of the area.
Well both units are empty and the place isn’t selling. So… It’s pretty unlikely these units are rentable as-is for $1500 a month
Bank/current owner are likely not trying to rent it right now. I suspect that they are willing to take an additional discount for not having a existing tenant. That will make the place more attractive to non-investor types that may have an eye on tear down or SFH conversion. Those buyers are NOT interested in picking up a place with existing leases. No current renters actually broadens the appeal of this property at the moment.
It’s not rentable as is for $1,500, no way. I think it needs work to make it in the $1,500 range. Remember, renters in this neighborhood are going to be 6 post-college kids cramming into frame two flat paying $400 or $450 a piece. THis is not a luxury $1,500 or $2,000 month rental to a family. This is a small 3 bed with one bath.
The taxes have the homeowners exemption; interest rate will be higher because it’s an investment property. And the apartment will experience a lot of wear and tear, a lot of it between every lease. If it’s such a great deal it would be gone but it’s starting to approach a valuation that makes sense.
This will not easily grab $1,800 a month. maybe a similar unit in LP or near depaul but not here. This is not a tear down either. Nobody in this market is going to build a SFH on spec or for themselves on Addison street. This is what it is: an investor two-flat in which the price should be based on rental income, or, a SFH conversion for somebody with some cash (or access to financing) with plans to live or sell.
hate hate hate this location, i couldn’t imagine living here
“It’s not rentable as is for $1,500, no way.”
So, you’ve peaked in the windows? Or does one of your clients own it?
“THis is not a … $2,000 month rental to a family.”
You don’t actually know many families who rent in the city, do you? $2k is an expensive family rental.
“This is a small 3 bed with one bath.”
Which sounds about typical for a family of 4 (or more) renting in the city.
“The taxes have the homeowners exemption”
Taxes are also based on a market value of $513k, so there’s a slamdunk appeal.
“This will not easily grab $1,800 a month.”
Agree with this.
“This is what it is: an investor two-flat in which the price should be based on rental income”
And that’s where it’s at, at $279k.
ps: $456k first and a $85.5k 2d from 2007. So, 95% of a $570k appraisal. LP was filed by Citi.
“GIY project?
goyism? Gawd help me? give me a break I’m all in?”
Groove it Yourself, implying a mostly HO done reno/expansion which takes place over time.
Homedelete – I agree on your points but the quote was about 3 bedrooms east of here that “easily grab $1800” and not for this location. If they put in JHome depot special new kitchens and baths then let’s call your $450 target a possibility and add in $150 for parking twice. $450 x 6 + 300 still calculates to $3000 per month in my count. That is decent cash flow for a total of $100K invested and a 200K loan. Over time the taxes will rise keeping expenses limited will depend largely on the quality of the renters that inhabit the place.
I’ve been watching this as I have two flat buyers in Northcenter/Ravenswood looking for their primary home spending up to $500K. We have lost a multiple offer and killed a deal so far, both brick buildings were in $490s. They want brick and no “artery streets” (maybe Damen), but I’ve been looking at all the action.
Anywho, at this price as long as it’s truely not a tear down, you could spend $200K realistically for renovation well and fully done by contractors with nice finishes, HVAC etc..and have yourself a real nice single family home in a decent school district (Audubon), great location for restaurants, bars, CTA… for well under median price for comparables. The median price for 3 bed/2 bath homes w/garage in Northcenter is about $525K in the last three months alone. If you did the work, refinanced, you’d probably get a higher apprasal and can lowe your mortgage immediately.
You could spend less on renovation too, but $200K renovation budget would be still be under median prices “all in” and get you more house. I’m confident buyers would jump at a fully renovated house w/ 3 bedrooms, garage etc.. for $500K on a standard lot at this location if one hit the market. It’s your primary home, so all in cost simply needs to be in line with what the market will bear. For instance, 2146 W Addison, 2900 sq/ft duplex down condo closed for $526K in June. Townhomes/duplexes just on the other side of Damen have grabbed $600K.
A really bad looking frame two flat closed for $305K earlier
this year at 1907 W Addison. I have not looked at the site to see what they’ve done with the property since the sale (need to do that).
The issue is, there are few buyers that will have the know how or confidence to buy this and make it there own home for under $500K. Price is too high for developer tear down, but getting close. Plus it’s a short sale, making the the market even smaller for those willing to deal (and wait) for this purchase.
In these cases, it mostly has to go “too low” and then professionals pick them up.
HAHAHA. GIY. Groove it yourself…is that with or without permits 🙂
It’s a teardown. I’ve ‘peeked in the windows’ (and walked the property). So save yourself the time of cashflow examples. Just budget a bulldozer.
No one will rent this place except a rat. Period. I live in a gorgeous 3/1 rental around the corner on Waveland for under $1400 per month, and there is absolutely no comparion.
I’ve walked past the property several times. It’s a tear-down most likely.
“It’s a teardown. I’ve ‘peeked in the windows’ (and walked the property). So save yourself the time of cashflow examples. Just budget a bulldozer.”
So it’s really just another overpriced place the owner is hoping for some developer to come along and rescue them. Here’s to hoping it doesn’t happen.
If there is any renovations being planned, they should add bathrooms. 1 bathroom for tenants with multiple roomates is not going to cut it.
…or, perhaps it becomes an “Animal House” style place for De Paul kids. Then they help you demo it by sheer existence until you can just blow it over.
or maybe you could hire this guy…
http://www.bloomberg.com/news/2010-09-20/chicago-man-charged-by-u-s-in-plot-to-bomb-city-s-north-side-neighborhood.html
“or maybe you could hire this guy…”
That would be excluded from you insurance policy. If the DePaul kids decide to BBQ in the basement and burn the place down, then you’d get something.
If this were on any sidestreet in the immediate vicinity, it would have sold as a teardown by now, assuming the bank actually wants to move teh prop.
“If this were on any sidestreet in the immediate vicinity, it would have sold as a teardown by now, assuming the bank actually wants to move teh prop.”
Agreed, especially the bank factor. They could have offers already going nowhere.
“That would be excluded from you insurance policy. If the DePaul kids decide to BBQ in the basement and burn the place down, then you’d get something.”
Not considered an act of God?
oh man you better watch yourself 😉
“If this were on any sidestreet in the immediate vicinity, it would have sold as a teardown by now, assuming the bank actually wants to move teh prop.”
Eventually these developers are all just going to go away. New properties aren’t moving and I’d suspect gut rehabs aren’t moving in any quantity anymore either. Its only on this RE p0rn site that people talk about gut rehabs being standard.
Buy it now and renovate it so it becomes “good enough” for Cubs fans who cherish the semi-ideal location with a quick bus ride to Wrigley and some interesting local businesses near the L stop and along Lincoln.
Also, if it’s a family renting a place, they are near two good schools, Catholic and public. And a quick bus ride to Lane Tech or Gordon Tech.
“And a quick bus ride to Lane Tech”
You’d really get on the bus to go 4 blocks? Some of the kids who drive park almost this far away.
Four blocks can be pretty treacherous in a Chicago rainstorm, or during the winter. Heck, I remember some years ago when I decided it was prudent to hop on a bus for a TWO-block trip in mid-January! (Of course the fares were cheaper then.)
Looks like a cool flop house. Maybe I can set up shop there.
Pending, with a last list of $259,999.
Pending, again, with a last list of $309k.
Sold for $200k in April and now back on at $399 (down from $431):
http://www.redfin.com/IL/Chicago/2014-W-Addison-St-60618/home/40426862
Appears to be a straight flip (“Property needs major rehab. Sold as-is.”), but they did take the boards of the windows for the exterior pic this time.