Greystone 2-Flat with Good Bones: 5207 N. Magnolia in Edgewater
Some of you have been chattering a lot lately about multi-unit buildings.
This 1898 greystone 2-flat at 5207 N. Magnolia in the historic Lakewood Balmoral District in Edgewater has good vintage bones. The building still has the original woodwork, leaded glass and built-ins.
The first floor unit is 2 bedrooms, 1 bath while the second floor is the owner’s unit with 3 bedrooms, 1 bath and duplexed up to a family room with private deck.
Each unit has separate central air.
There’s also a 2 car garage.
Pamela J. Ball at Baird and Warner has the listing. See more pictures and a virtual tour here.
5207 N. Magnolia: 5 bedrooms, 2 baths, 2 car garage
- Sold in December 2000 for $537,500
- Sold in June 2006 for $820,000
- Listed in October 2008 for $830,000
- Currently still listed at $830,000
- Taxes of $6784
- Central Air
Good bones, indeed. Actually, looks like good everything to me (well, except the kitchens could use work at this price point).
But the bigger issue is the listing price. $830K for a two-flat (thought pretty nice)? You’d have to have a huge downpayment (maybe 50%) to make this work as a rental – either Owner-occupied or full rental. I would think tying up that much money in one investment would be silly. It probably needs to be around the $650K range perhaps.
i love rooftop decks. Seems like a good place, out of my price range. It is on a large lot though. I guess the basement is unfinished?
On side note why do some people put toilets next to the door, its a minor thing but it seems a sink place should be next to the door.?
Good bones for sure, I love the authentic vintage pieces (those 5 panel doors are gorgeous), and nice roof deck, but the kitchen is a travesty at this price point – not just finishes either, it needs a floorplan change – it’s currently TINY.
I’d plan on spending at least $150-200k to properly convert to a SFR, including adding another bathroom and redoing the kitchen. The bathrooms need rehab too at this price point.
For $1MM out the door, I’d prefer to be a whole lot closer to the city.
So lets pretend someone buys this place for $830K. figure the small 2 bedroom gets $1200 month for rent, and the larger unit $2000 (which I think is generous). You put down 20% and you are still in Jumbo loan territory, so your interest rate is at least 7.5%. Figure tax, insurance and maintenance, you too can piss away $14K a year
If I had 50% for a DP ($415,000) I would probably not be interested in a 2 flat in Edgewater, or I could put it away, and make more money letting it sit in the bank
I think Bradford nailed it. Great place with a lot of potential…but it needs a lot of work and location isn’t _awesome_ (especially for those looking at CPS). So just on its face, this place looks expensive to me.
But the worst part of this place is its neighbors, IMO: there are comparable properties nearby that are just much better values. For instance 5239 N Wayne. It is a similar size as this place, has already been converted into a SFH, has much nicer finishes and is listed at just 20K more than this property. Assuming Bradford’s estimates of 150-200K of work on this place is needed (I think it is a good ballpark, anyway), it looks like a pretty bad deal in comparison.
Even if we assume that these properties aren’t reflecting bubble pricing (which they all are, IMO), this place just isn’t a great deal for the neighborhood.
Assuming you bought it as a duplex to live in and rent out the other unit theres no way in heck the market rental yield on the other unit would come even close to denting half your monthly nut.
So chances are the buyer would be interested in converting to SFH, I echo Bradford’s sentiments here: lots more $ to convert it to SFH.
Beautiful building though! In a few years time it might be a deal for someone. Sorry they bought at the peak, but it makes me wonder what kind of exotic financing they used on the mortgage. 2000 price looks about right.
I agree with Haywood. Investing in real estate isn’t for everyone. Most people don’t know how to correctly predict their revenue/expenses and end up not making the profit they thought they would. If you genuinely love real estate and being a landlord then go for it, other than that IMO it is better to go to the bank, buy a CD and let it collect interest. This market is definitely not for amateurs.
Hard to see how this works as a owner occupied place. The 1 bath only kills it. I like the neighborhood. I think the CPS option is one of those that is on the rise, although maybe not currently viable (if I’m thinking of the right school).
“I think the CPS option is one of those that is on the rise, although maybe not currently viable”
It’s Trumbull. Corner of Ashland & Foster. (based on test scores) It’s better than CPS average, but doesn’t appear to be improving, as the older classes score better than the younger.
The shack on the roof is a family room?
I’ve been here. It is not meant to be an investment property. They already have the plans ready to convert to a single family home. It is on a 37.5 foot lot, it’s a large building, and has a great yard. It also has good distance between neighbors. 5239 N. Wayne is on a 32′ lot… that extra 5.5 feet makes a HUGE difference. Also the way this house is laid out makes it ideal for a single family conversion… the staircases are in the right places, plumbing is in the right places, etc. It has room for 4 beds/3 baths on one level.
5335 N. Lakewood sold in December for 1.155 million and was on a 37.5 lot. However the building appears to be the same width as a standard lot house and built right up next to the neighbor, with a huge sideyard. This Magnolia building is larger than the home on Lakewood.
Their price is a little on the high side, but assuming 200k to do a full on SFH conversion, it’s not out of the question for the right buyer.
The “shack” door on the roof steps down into a decent sized family room with vaulted ceilings. VHT has a photo of it. For a single family conversion it would be ideal for a second mechanical room and a “penthouse” type room with a wet bar, since that’s how you access the roof deck.
“It’s Trumbull. Corner of Ashland & Foster. (based on test scores) It’s better than CPS average, but doesn’t appear to be improving, as the older classes score better than the younger.”
I’m thinking of another school in that general area, although apparently not covering this house. Pierce (sp??) maybe.