How Hot Is Old Town? The 700 Sq Ft 2-Bedroom in Gaslight Court Sells: 1407.5 N. Wells
We’ve chattered about this 2-bedroom in Gaslight Court at 1407.5 N. Wells in Old Town 3 times over the last 4 years.
See our latest chatter in March 2013 here.
If you recall, it was listed for $70,000 over what it had sold for just 2 1/2 years before.
Many of you were obsessed with the realtor’s description of it as “sheque and inviting.” But at least one who chimed in about price thought we shouldn’t be concerned about the property’s past price history.
Listed at $320,000 it just recently closed for $277,500, or $27,500 over the 2010 price.
If you recall, in 2009, the square footage was listed at just 700 square feet.
The kitchen is the same as it was previously. It has maple cabinets, white appliances and an island.
There was no central air. It is window units only.
There also wasn’t any parking with the unit, but it does have an in-unit washer/dryer.
The unit has just come back on the market as a rental available June 1 for $2300 a month.
Was this a good rental investment property given how hot Old Town is?
Kenneth Beltran at D’Aprile properties had the listing. You can check out the rental listing (with pictures) here.
Unit #3E: 2 bedrooms, 1 bath, approximately 700 square feet (according to the 2009 listing)
- Sold in January 2002 for $190,000
- Sold in June 2009 for $235,000
- Sold in September 2010 for $250,000
- Originally listed in March 2013 for $320,000
- Sold in May 2013 for $277,500
- Assessments now $350 a month (they were $266 a month in 2010)
- Taxes now $3678 (they were $2642)
- Now available to rent for $2300 a month
- No central air- window units only
- In-unit Washer/dryer
- No parking
- Balcony
- Bedroom #1: 11×11
- Bedroom #2: 10×10
- Living room: 19×13
- Kitchen: 13×9
Looks to be $27500 over the 2010 price, not $20k but no big difference…
This unit definitely seems better suited to be a rental than a home to buy. I’ll let others comment on the financials of renting it at this price though. Too much math for a Monday morning!!
“Looks to be $27500 over the 2010 price, not $20k but no big difference…”
You’re right. Just my bad math. I fixed it in the post.
“financials of renting it at this price ”
12*[2300-350] – 3678 = 19722 / 277500 = 7.1
*IF* it rents for 2300 on 6/1 w/o concessions, that’s pretty good.
“12*[2300-350] – 3678 = 19722 / 277500 = 7.1”
That’s assuming the place is paid off.
If there is a mortgage for 200k, then 2300 only covers assessment and mortgage, still have to pay 3678 on tax, minus mortgage interest and prop tax deduction, probably looking at breaking even if no major repairs.
“If there is a mortgage for 200k, then 2300 only covers assessment and mortgage,”
Who the F*** is paying $1950 monthly for a $200k mortgage? A mortgage for the conforming max ($417k) has a lower monthly payment, and that’s before accounting for the piece of the payment going to principal.
And then, it becomes ‘fair’ to apply the cap to just the $77,500 dp. Thus:
12*[2300-350] – 3678 – [.045 (just to be crazy high)*200,000] = 10722 / 77500 = 13.8%
And then it looks like a *great* investment.
2300/month for this? no way. Thats $3.29/sqft. You can rent a 2/2 in 1225 n wells at $2.82/sqft (at their listed price mind you) and be in a brand new building and way more amenities (gym, pool, doorman etc). This rents for 1950-2000.
“You can rent a 2/2 in 1225 n wells…”
Not saying that I’d rent the subject property for $2,300 (I wouldn’t), but there is an arguably material distinction between 1225 and 1407 Wells. The feel of Wells from a couple of blocks north of North, to a few blocks south of North, is quite different than, say south of Goethe.
2 bedrooms in 700 square feet? The thought makes me feel claustrophobic.
“The feel of Wells from a couple of blocks north of North, to a few blocks south of North, is quite different than, say south of Goethe.”
The completion and occupancy of 1225 will go a long way toward chagning that. And if/when Atrium Village actually gets rebuilt, that will further change that end of Wells.
“Not saying that I’d rent the subject property for $2,300 (I wouldn’t), but there is an arguably material distinction between 1225 and 1407 Wells. The feel of Wells from a couple of blocks north of North, to a few blocks south of North, is quite different than, say south of Goethe.”
Not disagreeing. And the highrise vs midrise vs 2 or 3 flat will play a part as well. But I dont think anyone in their right mind would pay that. Im just North of North Ave a block west and dont pay close to that for 1000sqft 1bed/2ba.
You can tell we are in an unsustainable rental bubble when someone even thinks of posting a shitbox like this at $2300 a month. 2 years from now (when thousands of new apartments become available) this place will rent for $1500/mo. And assessments will be at least $400 a month. It won’t be such an awesome investment at that rate.
$2300 is the rental ask. Let’s see what it actually rents at.
Old Town is hot right now and is what I consider the new neighborhood to rent in. Alderman Tunney is reeking havoc on Wrigleyville and along with the youth center on Halsted that attracts troubled teens, many a people are finding better neighborhoods to rent in. Old Town is also much closer to the loop for work and wells street is as active as Hubbard Street in River North.
While 1225 N Wells is a couple of blocks south of here, the “feel” of those 2 blocks isn’t all that bad… which is why 1225 has the highest rents psf outside of lakeshore east. This place, by comparison to 1225, is a POS. I predict it will rent for $1900 at most.