Live in One Unit and Rent Out the Other Two: 2500 N. Mozart in Logan Square
This vintage 3-unit building at 2500 N. Mozart in Logan Square came on the market in August 2018.
Built in 1904 on a standard 25×125 lot, the graystone has an owner’s unit in the front part of the home and two 1-bedroom units in the back.
It also has a 2-car all brick garage accessed from the street because the house is on a corner lot.
The owner’s unit is a triplex with 3500 square feet, 4 bedrooms and 2 bathrooms.
It has wide plank Brazilian cherry floors on the first floor along with a living/dining room, kitchen and laundry room.
The kitchen has wood cabinets, granite counter tops and stainless steel GE Monogram appliances.
Three of the four bedrooms are on the second floor with the fourth in the lower level.
The basement is partially finished and has a family room and an office.
There’s a rooftop deck with city views and the graystone has central air.
The two other units are 1-bedrooms with 619 square feet each and have central air.
The listing says they have “updated finishes” and sunrooms.
There’s a washer/dryer in the unfinished lower level which appears to be used by the two 1-bedroom units.
The listing doesn’t have the rental amounts for these units.
The multi-unit buildings have been really hot this year. They go under contract pretty quickly.
Is this building a good way to get started as a landlord as you can live in one and rent out the other two to help pay your own mortgage?
Lindsey Delrahim at @Properties has the listing. See the pictures here.
2500 N. Mozart: 6 bedrooms, 4 baths, 2 car garage
- Sold in April 1988 for $226,000
- Sold in March 1992 for $261,000
- Sold in July 1999 for $430,000
- Originally listed in August 2018 for $1.3 million
- Currently still listed at $1.3 million
- Taxes of $7940
- Central air in all three units
- 2-car garage
- Washer/dryer in the basement and washer/dryer in the owner’s unit
- Owner’s Unit #1: 4 bedrooms, 2 baths, 3500 square feet, triplex
- Unit #2: 1 bedroom, 1 bath, 619 square feet
- Unit #3: 1 bedroom, 1 bath, 619 square feet
Nice exterior but this is a complete no.
Property taxes should increase substantially
W/ 20% down, assuming you could get $1500/ea for the 2 units and prop taxes double, you’re looking at spending $4k/mo for this? Might be worth $1.3 updated as a SFH.
Anyone know what the min down pmnt would be of a live-in multi family unit?
JohnnyU on September 19th, 2018 at 8:38 am
Anyone know what the min down pmnt would be of a live-in multi family unit?
My wife and I just went through this so I’ll chime in. Buyers with good credit scores can finance (15/30-year fixed) owner-occupied 2-4 unit properties for as little as 3.5% down with FHA.
Freddie Mac also has a Home Possible program where you can finance up to 95%; I believe, like FHA, they count 75% of the expected rental income towards your qualifying income when purchasing a 2-4 unit. However there are income restrictions for properties in specific higher-end areas w/Home Possible where you can’t be above a specific median income threshold. I checked and Logan Sq is definitely in one of those areas. Certain areas with lower median incomes are designated “underserved” areas and will not have this income restriction.
What’s nicer about Home Possible was that there’s no upfront mortgage insurance fee, and PMI goes away automatically at 78% LTV (or you can request it off at 80%) whereas FHA you have to refinance out of the loan to get rid of it.
While I don’t mind the neighborhood, I’m failing to see the upside of purchasing anything in Logan Square right now, it feels very top-heavy. I like how this property has a rooftop deck (don’t see that often on multifams) but I don’t like how the units are divided in this property, as it will be harder to rent 1bds vs 2bds. But maybe that’s better for a live-in landlord who wants to deal with fewer tenants. Then again… what is the market is like for buyers who can afford this place AND want to be landlords?
Johnny, 20-25% would be the norm at this price point for a 3 unit. However, to my surprise, there is 5% down available but rates are really high (near 200bps above what you’d see with 25% down).
VA typically is the best deal going for multi-units as a primary residence. Would probably only need about 8% down. Ton of clients who are vets who buy multi-units because of this.
Elliot, max conventional mortgage for a 3 unit is $701,250, so those wouldn’t work at this price point of $1.3 million. Max FHA 3 unit is $565k. For a 3-4 unit, FHA actually looks at their idea of a cap rate to determine the required down payment so you usually need more than 3.5% down. They want the rent from all the units to cover the mortgage and increase down payment until that ratio is met.
When purchasing a multi-unit, standard guidelines allow underwriters to give credit for 75% of the rent, so most people qualify for more expensive multi-unit homes than they would a single unit.
Interesting stuff Russ!
I don’t like how the units are divided in this property, as it will be harder to rent 1bds vs 2bds. But maybe that’s better for a live-in landlord who wants to deal with fewer tenants.
FWIW the street view makes me think these are generously large 1 bds. They also have a separate entrance, which is nice.
I wonder if someone would want to try and convert this to a kick-ass SFH?
about equal distance from either Blue Line stop. Wish I could get it at the 1999 price.
“I wonder if someone would want to try and convert this to a kick-ass SFH?”
Not with a $1.3m base price.
Agree with JohnnyU, $1.3m is about right were it a fully converted SFH. Give or take based on the level of finishes.
I wish I could be a Logan Square hipster and pay a cool 1.3 million for a place that sold for 261k a quater century ago. But back then I couldn’t live among Bernie votin’ white people and talk about “social justice, brau”.
I’m gonna live among a bunch of people that hate me with my million dollar house, but they’re just hatin’ because they don’t know I’m a Bernie Votin’ Social Justice bro. I’m going to hang out with millennials named Elliot & Ethan and we’re going to head down to the microbreweries on Milwaukee with their virtue signalling signs that “Hate has not Place Here” prominently displayed outside so I know it’s a great place to drop $7 a pint with my bearded friends.
Logan Square is Chicago’s Brooklyn:
https://www.youtube.com/watch?v=vKOb-kmOgpI
For a listing of 1.3 big boys you’d expect a can of paint to freshen up the joint wouldn’t be too much of a cost to add some appeal.
As for Bob, my man the hipsters have already moved on living in LS. They’d return for their artisinal brew and ponder the world over a cupajoe but that’s about it. Further up the blue line, and into Avondale they went.
Hipsters without ambition and/or artistic talents may be moving to Avondale. For the others, East Garfield Park is seeing the “old factories turning into hip lofts” thing going.
Urban Pioneering is alive and surviving in Chicago!
” They’d return for their artisinal brew and ponder the world over a cupajoe but that’s about it. Further up the blue line, and into Avondale they went.”
I hope they stay out of Old Irving Park. Probably too suburban for them, you know, 50′ wide lots.
Isn’t there an artisanal brew pub on Montrose just West of Kostner? It would be on the South side of the street, which puts it on the border of Old Irving Park (North side of street is Mayfair). I haven’t been in that neck of the woods in a year or so.
“Isn’t there an artisanal brew pub on Montrose just West of Kostner?”
Old Irving Brewery
Bob on September 20th, 2018 at 6:48 am
I’m going to hang out with millennials named Elliot & Ethan and we’re going to head down to the microbreweries…
Great, we can hang out in your garden unit rental afterward and talk about how you totally missed the mark on the Chicago real estate market trajectory in the early 2010s. Pass the PBR, bruv.
This place is a complete and utter ripoff for the money. Nice facade, roof decks are great, but that price needs a reality check, especially given the lack of character inside vs. the exterior.
“Great, we can hang out in your garden unit rental afterward and talk about how you totally missed the mark on the Chicago real estate market trajectory in the early 2010s. Pass the PBR, bruv.”
Yes everyone bought low and is going to sell high. Elliot if a substantial portion of your net worth is tied up in your RE purchase in Chicago (which is the case of the vast majority of purchasers) I should feel bad for you (but don’t). You’ll be having PBR as your taxes get hiked substantially each year to compensate you for your paper gain.
Because it’s not liquid it’s not a gain until it’s realized. And with significant carrying costs. Keep thinking the bubble will last forever: the next mayor will likely have a revenue plan that will have you in mind.
The same people paying these high RE prices are the same people who are going to want a bailout in older age if their RE position doesn’t continue to appreciate because they have no or minimal retirement savings. Their next egg is one giant gamble on one very concentrated asset.
Why pay $1.3 mil for an oddly converted former 4/5 flat that was shrunk to 3 units? It’s still listed w/ no price reductions, and we’re heading into winter. They now list gross rental income as $3k a month, with tenants paying for their own heating and parking, but the last For Rent listings show the units asking $1,400/mo.
This property is at the high end of the spectrum.
Here’s a bunch of current and sold SFH and multi-family buildings in East LS:
Crud.
I forgot how to post web links to this site.
Just checking in, and found they “delisted” this property in December, 2018.