Investing in a North Center 2-Flat: 2142 W. Irving Park Road
This Victorian 2-flat at 2142 W. Irving Park Road in the North Center neighborhood of Lakeview has been on the market since February 2009.
Since then, it has been reduced by $106,000. It is listed as being sold “as-is.”
The two units are as follows:
- Unit #1: 3 bedrooms, 1 bath, parking spot: rent for $1250 a month
- Unit #2: 2 bedrooms, 1 bath: rent for $1400 a month
The units do not have central air, only window units.
There is 1 additional bathroom in the semi-finished basement. The listing also states that there are new appliances.
Does this 2-flat now make investment sense?
Thomas Okon at Prairie Shore Properties has the listing. It is agent owned.
See the pictures here.
2142 W. Irving Park Road: 2-flat, garage
- Sold in June 1992 for $162,500
- Sold in September 1998 for $208,000
- Originally listed in February 2009 for $445,000
- Reduced several times
- Currently listed at $339,000
- Taxes of $5912
- Gas: $3000
- Insurance: $2000
- Water: $250
I assume you will forgive me for going totally off topic here but I couldn’t resist following up on the heated debate from the other day with Steve regarding home values in Lincoln Park. Herewith is the data: http://blog.lucidrealty.com/2010/01/11/lincoln-park-home-prices-not-immune-to-downturn/
Yeah, you can tell from the URL what the conclusion is.
Oh…and to answer Sabrina’s question on this property…it starts to make investment sense around 260K unless you believe you can raise the rent.
“it starts to make investment sense around 260K ”
I’m slightly dubious about *maintaining&* those rents.
That said, the current ask is at least in the ballpark. $339k is just above the 92-98 appreciate rate carried forward,
The auto mechanic that looks to be two doors over is–actually–the backyard neighbor, so that’s a second minus.
$1200 is about right for the nieghborhood rents, but for that you can also get a much roomier non victorian floor in a 2 or 3 flat, on a nice quiet street liike wolcott or winchester or almost anyplace else. Irving is also really busy on this stretch
“Yeah, you can tell from the URL what the conclusion is.”
Very interesting, Gary. Ran some quick annualized rates of change based on your data, and the median annual rate of change on the properties in your sample is negative 1.0% a year (the mean is negative 3.7%).
“the median annual rate of change on the properties in your sample is negative 1.0% a year (the mean is negative 3.7%).”
But if you exclude all the Stevo (and maybe stevo) do-not-buys, it’s probably positive.
Ok, this is getting absurd:
GREAT NORTH CENTER NEIGHBORHOOD NEAR IRVING BROWN LINE AND NEW COONLEY MAGNET SCHOOL
Ok, so explain to me why I am going to buy an investment property based on the MAGNET status of the attendance area school? If I am a renter, what does it matter anyway? I could live all the way in Galewood and send my kids to Coonley’s illustrious magnet program (which ends at 3rd grade). This is as far fetched as cabrini listings that tout proximity to Latin.
And who rents and sends their kid to Coonley’s magnet school anyway? Based on what I have read, the only reason the school is “getting better” is because richer and better educated parents are sending their kids here. So much for nurture over nature.
But the best part is the fact that this place is right smack on Irving Pk Rd… Who with small kids chosing a location based on proximity to a school also chooses this location? Is this the whole, “as long as I am close to a school I don’t have to be close to anyway, its worth the risk of little Danny getting run over” logic at play again?
JMM,
Why you gotta go and knock galewood?
“I could live all the way in Galewood and send my kids to Coonley’s illustrious magnet program”
JMM: If all I could afford was $1,250 a month, I’d think about living in a place that offered a good school, even if I had to be on a busy street, no central AC, with 1 bathroom. I don’t know that there aren’t better options out there than this, but I would weight school heavily. Hell, I’d probably get a rental in Bell. I don’t know how much those go for, perhaps more than this.
I agree about the lack of relevance of the gifted program, which is one of the things that confused me about all the Coonley references. I think some magnets have proximity preference now, but Coonley gifted, which I think is not magnet, does not. I would actually forgive a realtor for confusing this. I like to think I have some moderate intelligence but trying to understand CPS sorely tests that belief.
“Hell, I’d probably get a rental in Bell”
if i had to rent i would rent in chicago i would rent in Oriole Park for the school. and rents would be way cheaper
JMM: “MAGNET status of the attendance area school”
Proof that realtards are just throwing school stuff around–Coonley’s program is a gifted program, not magnet (as noted by DZ). Making proximity irrelevant, except for commuting purposes.
JMM: “Coonley’s illustrious magnet program (which ends at 3rd grade)”
Only b/c they are aging the kids in. In 5 years, it will be a K-8 gifted program.
DZ: “a rental in Bell. I don’t know how much those go for”
About the same for the same sort of place, but off of IPR.
DZ: “trying to understand CPS”
I think it’s *almost* as much about persistence as intelligence. Clout of course would obviate the need for either.
“Only b/c they are aging the kids in. In 5 years, it will be a K-8 gifted program.”
Oh, is that what was in the brochure when your kid tested for it?
If that is true (and it’s plausible, I really do not know), then there are “gifted” programs that have been aging for quite some time now.
But either way, you’d have to be an idiot to live across the street for the same rent and not attend Bell.
This is my issue with Coonley — its all smoke and mirrors and realtor (TM) hype. Remember how Cabrini was going to be the great rennaisance? Same snake oil, different decade.
“Why you gotta go and knock galewood?”
Galewood is my go-to example for city limit living. Plus I love Russell’s BBQ (even though that is Elmwood Park).
JMM
Agreed the realtor hype on schools is out of control and completely unwarranted. However, if people are dumb enough not to do their own research on schools then you have it coming to you.
It’s all about the buzz and with all the misinformation out there, Coonley has been able to capitilize on some positive buzz. FWIW, I am not in the Coonley district (about a block away) but have several friends who started their kids there this year and it’s clearly on the upswing. Blaine was crap only 5 years ago and now people fall over themselves trying to go there. I am not a big fan of Blaine though and won’t be sending my kids there eventhough we are in district. CPS is one big enigma.
“I am not a big fan of Blaine though and won’t be sending my kids there eventhough we are in district.”
Can you elaborate?
DZ
I did the tour, just didn’t get a great feel for it. My primary concern is the overcrowding. I think the kindergarten we initially saw had 28 kids in it with one teacher and a part time aid. That turned me off. In addition I wasn’t too keen on the principal. I am very pro public school though so my kids will go to one. I very much like what I see at Hamilton and Audubon, just came away from both of those tours with a better impression and think they would be a better fit for my kids. I am trying out Hamilton TBPK in the fall for my oldest.
“there are “gifted” programs that have been aging for quite some time now”
Which ones? Seriously, I haven’t heard of it and am curious. There are 10 RGCs (not counting those for non-native english speakers), 5 on the northside (Pritzker, Beaubien, Edison, Bell, Coonley). AFAIK, Coonley is the only one that’s not currently k/1-8.
Also, looking at stuff on the CPS sites, the parent survey from last year is fairly interesting–for K-3, Coonley had better parent ratings than Bell or Lincoln, but *poor* ratings for 4-8. So, maybe the current parents are under the spell too (or just proping the place up, hoping to sell their houses), but maybe they know more than you do.
“I did the tour, just didn’t get a great feel for it. ”
Here is my pick to click: Joseph Sears, district 38. 15-20 kids a class, if that. One of the highest spending per student in the state.
“Here is my pick to click: Joseph Sears, district 38.”
Well, if that’s the way your going to go, why all the agita over the difference b/t city schools? It’d be like me making a big deal about the difference b/t hoffman estates and arlington heights (is there one?).
Big differenve between hoffman and arlington. Go check it out for yourself.
Gary: That is some great information on transactions that closed in the last 30 days in Lincoln Park. Thanks for the link. And now I also don’t have to go and get all the examples for Steve of those who lost money in the last 3 years.
From your update on the Lincoln Park market:
“As you can see, pretty much everyone who bought a condo in Lincoln Park since April 2005 lost money in the last 30 days. (I should point out that the 1660 N LaSalle condo, shown selling at a “gain”, might very well have had substantial work done on it since being originally purchased – it’s hard to believe it gained that much value on its own.) On the other hand, eyeballing the data, the situation looks better today than it did a year ago. Homes don’t seem to have lost as much value in Lincoln Park as they were losing a year ago.”
By the way- if LP is supposed to be the neighborhood that held up the “best” (and it likely has)- what does this mean for the other neighborhoods if there are these kinds of losses in LP?
It’s not a pretty sight out there right now.
“Big differenve between hoffman and arlington. Go check it out for yourself.”
I’ll take your word for it, HD. I don’t know and have no interest in finding out (on my own–more knowledge is always good) what the difference/s is/are.
But the point was that it would be absurd for me to get wound up about you saying that “fact x is better than anon’s perception” because I don’t know and it is extremely unlikely to affect me ever.
“I love Russell’s BBQ (even though that is Elmwood Park)”
Dude you remember when that place had the mini jukebox at each table. mmm ribs and crappy french fries.
the groove family had a serious talk over the new year holiday weekend and Kenilworth jumped back on the table right after a talk of having another kid. i dont think we want to pay the back up plan of private school for three kids. This February we will be hitting some open houses out there.
“Here is my pick to click: Joseph Sears, district 38. 15-20 kids a class, if that. One of the highest spending per student in the state.”
Good luck, Groove.
Thank ya wicker,
its going to take a lot for this life long city boy to move to the burbs but the way things are looking it might be easier than i am thinking
Groove,
I will stick by my comment that you may not like what you get in the 600k price range. You will also pay $1k / month in taxes or more.
I only bring this up because of your earlier comment about changing lifestyle. The median HH income in that area is 200k-ish, but that is well below the average. I’d say average HH income is 300-400k, knock 100k off on the west side of town.
But you’d be a welcome addition to a village that needs new blood (and not the blue type)…
“But you’d be a welcome addition to a village that needs new blood (and not the blue type”
we would stick out there and probably be talked about behind our backs (maybe be even a running inside joke for the people there) in the beginning. But once they get to know us and realize we are all trying to the same thing, give the best opportunities for our family and kids they will come around.
“I only bring this up because of your earlier comment about changing lifestyle. The median HH income in that area is 200k-ish, but that is well below the average. I’d say average HH income is 300-400k, knock 100k off on the west side of town.”
good point about income, i am a big believer that your income/net worth doesnt reflect the person you are just reflects the vacations you take 🙂
I do have to think my kids will get picked on for being the poor family there….have not looked at that way yet…..hmmm thats a huge negative factor.
My “hood” has been getting on my nerves lately and seeing it slip downward after what we did to make it better is not fun. also now that i am not coaching i have less interaction with the “Good” families so my perspective is getting skewed for the worse.
Groove – I was ‘city or death’ until I started the private school BS similar to Arie Gold on Entourage. The bribes, time donations, and ‘getting involved’ at age 2/3, so I could pay 15k minimum per kid for first grade on top of my already rising city taxes. The kids and wife love the burbs far more than the city as it so much easier. And when they are happy that leaves you with hall passes to do as you please.
Diversity is not its strong suit. From the 2000 census:
White 2,426 97.3%
Black or African American 4 0.2%
American Indian and Alaska Native 1 0.0%
Asian 56 2.2%
Hispanic or Latino (of any race) 34 1.4%
Groove, we may yet end up in a traditional wealthy suburb (La Grange/Hinsdale direction for us for family reasons) but are still holding out. The tangible advantages are obvious, but every time we are out there, it gives us the serious creeps. Which neighborhood are you in? I’m still exploring CPS as is obvious and not quite ready to give up on it yet. Our kid is not even 2 yet, so we have time.
“Diversity is not its strong suit”
that can be said for most of the north shore (exclude evanston).
i dont think color would be an issue with my wife or her accent, she is eastern european. It would be her tattoo’s, style of clothes and swagger that will cause a stir. (she seriuosly just got another tattoo on the back of her neck after christmas)
her artsy bohemian style (wish she would spend money like an artsy bohemian) could fly in Oak Park but north shore area or even naperville… well you know….
“that can be said for most of the north shore (exclude evanston).”
I would disagree somewhat. If you have to have lake frontage to be “north shore” then Glencoe / Highland Park and Wilmette (particularly Wilmette) are much more diverse. Glenview and Northbrook are also great communities that are more diverse. Don’t forget Highwood (lol).
Evanston is like a real city — it has wealthy areas and a low income neighborhood and its makeup more resembles Chicago (or any large city) than a suburb, so I would always exclude it.
“Glencoe / Highland Park and Wilmette (particularly Wilmette) are much more diverse”
Guess it turns on the definition of “much” or “diverse” (but the point is certainly true):
Kenilworth (Median Family Income=$200,000+)
Wilmette (Median Family Income=$149,104):
89.66% White,
0.56% Black,
0.04% Native American,
8.16% Asian,
0.01% Pacific Islander,
0.42% Other
1.15% two or more
Glencoe (Median Family Income=$200,000+):
95.07% White,
2.01% African American,
0.05% Native American,
1.68% Asian,
0.26% other
0.94% two or more
HP (Median Family Income=$137,703):
91.20% White,
1.78% African American,
0.08% Native American,
2.28% Asian,
0.01% Pacific Islander,
3.46% other
1.18% two or more
Good stats anon,
like i have said before about the north shore “too many white people scare me”
JMM,
I dont consider Glenview, northbrook or northfield north shore.
Highland park, i just dont like the vibe and housing stock there. given in HP now prices are dirt cheap.
Interesting that the “diversity” in Wilmette is almost entirely from Asians.
Why aren’t the non-english speaking russians in HP considered diversity?
“Why aren’t the non-english speaking russians in HP considered diversity?”
For many purposes (i.e., many schools) *asians* aren’t considered diversity. I saw that somewhere yesterday.
“For many purposes (i.e., many schools) *asians* aren’t considered diversity. I saw that somewhere yesterday.” Being asian is more of a disadvantage than being white for some schools. The old CPS diversity program included asians as advantaged group. (I don’t think the new CPS diversity program is going to achieve much racial or socioeconomic diversity.)
Anon does not comment on religious diversity, but he knows very well how KW scores on that front vs. the other towns.
“I don’t think the new CPS diversity program is going to achieve much racial or socioeconomic diversity”
I think that they might accomplish more socioeconomic diversity, b/c they are likely to replace MC AAs and Chi/Lats with poorer whites and asians in more than a few schools.
Plus, that’s their current position on what they should be using as a plus-factor, which I think is (at least) defensible, as there is no way that Marcus Jordan (for example–not that it isn’t an obviously extreme example) should have had any “help” getting into Whitney Young over some eastern-euro-immigrant housekeeper’s kid.
“Anon does not comment on religious diversity, but he knows very well how KW scores on that front vs. the other towns.”
It lead to some … unpleasant … comments last time, so I’m leaving it alone.
I think what he means is that there are no catholics on the north shore.
Here is a profile on KW that Groove might like. Note the *average* cited HH income — I was dead on.
http://www.chicagotribune.com/classified/realestate/Cook_County_IL/chi-kenilworth-profile-chomes-09sep04,0,4413665.story
HD — draw your own conclusions but that is not what was meant.
“I think that they might accomplish more socioeconomic diversity, b/c they are likely to replace MC AAs and Chi/Lats with poorer whites and asians in more than a few schools.”
For the testing admission schools, I think (without having really verified) that their four socioeconomic regions are so broad, and Chicago housing is so heterogeneous, that even the lowest ranked region has to include lots of non-minority, upper middle class and up, households. I would think you could come up with many examples of $500K plus houses within the lowest ranked region.
I had the testing schools in mind when I was making the statement. For the magnet schools, it might be a wash, replacing race based lottery with socioeconomic group based lottery, and the socioeconomic groups will correlate with socioeconomic status, even though the lower groups will have many higher socioeconomic families.
Groove – half acre wooded lot in Lincolnshire – the stevenson school district – for $499,000….
but…$12,000 in taxes…OUCH
http://www.redfin.com/IL/Lincolnshire/33-Berkshire-Ln-60069/home/17640843
Everyone knows the irish catholics are in the city, what’s the big deal here?
DZ:
I don’t disagree. and of course it will remain a black box until we see more than a couple of years of results.
jMM,
FROM THE ARTICLE
“Partly because of its limited geography and partly because its small population is so content, “Kenilworth really doesn’t change,” Mawicke says. “It’s pretty much the way it was 50 years ago. There’s no room for expansion here. Certainly houses have been improved.”
bad if the mentality from 50 years ago hasnt changed 🙁
also have you seen that strip of commerce recently? i went passed it a month ago half of it is vacant!!!
HD,
for the aspects of school i would move to lincolnshire in a minute. the commute to work would have me chewing on the the bad end of a gun.
“but…$12,000 in taxes…OUCH”
is it bad considering what a family gets out of that?
See the map here. You guys know housing and Chicago much better than I, but there have to be some fancy places within the lowest ranked region. Find me a house in the lowest ranked region so I can get little DZ into Edison/Decatur (I was just kidding on the other thread, I do want him to want to go there).
Next up for realtor promotion: LOWEST RANKED CPS SOCIOECONOMIC REGION!!!
Forgot link:
http://cpsmagnet.org/pdf/Census%20Tract%20Maps%20-%202009%20PopStats%20Estimates%20-%202009%2012%2001.pdf
DZ:
Real interesting stuff in the census data–in Bucktown (Hoyne->Wood by Bloomingdale/Churchill->Armitage) the median family income is over $100k, but Hoyne to Western it’s under $50k.
I’m sure you could find a spot, but the census tracts are actually pretty compact and the stats have to be *really* low to be tier 1. One spot is near Northside Prep–River to Kedzie and about 4 blocks south. (That wraps in that old dentist’s office, no?)
Hermosa/NW Humbodlt Park and much of Logan (w of Kedzie) are also tier 1s.
have you guys ever messed around the intertubez of city-data dot com?
“I’m sure you could find a spot, but the census tracts are actually pretty compact and the stats have to be *really* low to be tier 1.”
Yup, I hadn’t paid much attention to the map before just now. Oh well, not really a part of my house buying strategy. I have suggested to my wife we could rent in tier 1 until our son gets into a good school, but she was not enthusiastic.
“I have suggested to my wife we could rent in tier 1 until our son gets into a good school, but she was not enthusiastic.”
You can rent in tier 1 and live somewhere else.
wooo hoooo!!! it looks like my hood is tier 2?
I cant really figure out the maps streets but from first look i maybe the tier 2.
Figuring out which tier is a royal pain. See below. Not that I know how to do such things, but seems to me writing a web interface would only take a few hours. Or publishing a street level map, but I suppose you’d have to check it really carefully.
http://www.cpsoae.org/apps/news/show_news.jsp?REC_ID=118406&id=0&rn=5995502
“I cant really figure out the maps streets but from first look i maybe the tier 2.”
North of the tracks, south of Fullerton, east of ‘gansett to Cicero. Plus Fullerton to Diversey from Central to Lavergne. I think.
“Figuring out which tier is a royal pain. See below. Not that I know how to do such things, but seems to me writing a web interface would only take a few hours. Or publishing a street level map, but I suppose you’d have to check it really carefully.”
I would bet that they get the web search done so you can type in an address and find the tier, like you find a school on the school locator GIS. But the system is–what? 30 days old?–and they’ve been cutting the admin budget. If it’s still this multi-step mess in the fall, then it’s ridiculous.
HD & Groove:
Also check out Red Seal’s new construction 1 mi west of that 50 yr old Lincolnshire SFR in same school district for $459,900 (walk to train & high school):
http://www.redfin.com/IL/Buffalo-Grove/2-Daybreak-Ter-60089/home/17588033
Yeah the commute downtown bites but your kids grow up in a very diverse area with superior school & positive peer pressure. For me $12K/ yr RE tax was way cheaper than paying Catholic high school for several
“Groove – half acre wooded lot in Lincolnshire – the stevenson school district – for $499,000….
but…$12,000 in taxes…OUCH”
Departingsuburbssoon,
I thought the district for lincolnshire started at half day rd (rt 22).
and the far west of 94 isnt deerfield anymore its buffalo groove (see what i did there?)
Anon,
well from your help i am tier 2 and taking a second look i might me tier 3 also. the census site is jacked wont take my address so i cant find my exact census geocode. I am probably moving anyway.
“North of the tracks, south of Fullerton, east of ‘gansett to Cicero. Plus Fullerton to Diversey from Central to Lavergne. I think.”
“I would bet that they get the web search done so you can type in an address and find the tier, like you find a school on the school locator GIS. But the system is–what? 30 days old?–and they’ve been cutting the admin budget.”
A fair point. And they need to either get the underlying census data tract data by street address or interface into the census web site/database (assuming that is working), which may not be trivial. And conform their street address standardization to the census’s. I’ve always found the CPS locator interface perfectly fine but seemingly overcomplicated, like it was a class project of some new developer who had just learned some techniques.
“the census site is jacked wont take my address so i cant find my exact census geocode”
It worked for me a week ago but doesn’t work now. If you look at it in map view and put in a zip or something you can get to your region. It’s a pain.
“It worked for me a week ago but doesn’t work now. If you look at it in map view and put in a zip or something you can get to your region. It’s a pain.”
DZ,
I kind of figured it out but the area i think is around me jumps from tier 2 one way tier 3 another and tier 4 north. i am on a very strange part of the map 🙂
and the CPS locator i gave up on this past summer. it works but just not fast and easy. but i do have the school district memorized for the schools i want my kid/s in 🙂
“i do have the school district memorized for the schools i want my kid/s in”
I have little jpgs of all the school zone maps I’m interested in.
“You can rent in tier 1 and live somewhere else.”
I think you are suggesting something a little less transparent, but what is the rule on this if you were above board? Suppose you have two legit residences. Can you pick which one you use as your address for CPS or are you supposed to base it on primary or something?
I think the south part of Chinatown, south of Cermak and Archer may be tier 1. At least the rent would be cheap and the food would be good. It’s a shame but I don’t think that crazy Chinatown bordello house is tier 1.
“what is the rule on this if you were above board?”
I think it would be where you spend the majority of nights. Since it’s a one time thing (ie, when applying), you wouldn’t have to do it for too long. I don’t think there is anyway to do it *completely* above board, but if you’re paying rent, utilites, etc., they’d have to have a pretty specific rule to run afoul of it.
Also, I think that if both your residences are in the city, you’d be far down the list for follow-up–it seems there’s a fair amount of nonsnese w/ HS admissions w/ suburban kids.
Don’t think I would get too caught up in these tiers. This is a very moveable target and I suspect will be changed multiple times over the course of the next few years. Honestly I know CPS seems impossible to understand, but if you are really committed to living in the city, find an neighborhood school that doesn’t repluse you and seems to be a good fit and move on in to the district. Playing the lottery system is a joke to begin with and even if your wee one scores high on the gifted test it’s a very slim chance of actually getting in. If it is all too much to handle, move to the burbs.
“Don’t think I would get too caught up in these tiers.”
Yup. I’m mostly kidding about the tiers. I’m less sure about this after looking at the tier map, but I still think this is not going to get as much diversity as they are hoping for, and certainly less than currently exists. Which means they will rejigger the system, as they have said they might.
All you school geeks would probably be very interested in this article:
http://www.suntimes.com/news/education/2007536,CST-NWS-skuls24.article
Has a google clickable and zoomable map with all the tiers..
Just saw that this property was under contract. Interested to see the final purchase price if this deal goes through.
The goofball who sat next to you in high school algebra class grew up to become a real estate investor. He probably inherited some money and now he’s looking to spend it, or park it in an investment vehicle. This is the same guy who couldn’t do basic math in high school and he still has trouble with it now. The numbers on this property don’t really work out for a cash flow positive situation which means this guy is probably holding on to it for long term capital appreciation. Hopefully very long term because there isn’t much appreciation to expect in a downward trending market on a cash flow negative property.
“#Tim O. on January 29th, 2010 at 1:41 am
Just saw that this property was under contract. Interested to see the final purchase price if this deal goes through.”
“The numbers on this property don’t really work out for a cash flow positive situation”
IF (big if) the sale price is $299 *and* you could get $1400 for each of the units, it’s 7.5% cap after deducting the listed expenses. If the “goofball” pays cash, that’s pretty good return, assuming the building’s in pretty good shape (prob. a bad assumption, but whatever). So, this property is nowhere near as bad as you think, HD (except the IPR location, which sux).
Sold March 15, 2010 for $310,000.
anon, too lazy to find the right thread to put this in (and there isn’t really one), fyi the $1.3MM house on Bradley also shows as under contract. People love Bradley…
People do love Bradley. Helped that they listed it below what they paid. It will be interesting to see what they accepted.
The 38xx Oakley house w/ the too big deck and too small backyard closed for $1,049,834 (how that number was reached …).
“The 38xx Oakley house w/ the too big deck and too small backyard closed for $1,049,834 (how that number was reached …).”
List when we saw it was $1.19MM (started around $1.3MM). The pre reno sale was $600K. We asked ourselves if we would be interested around $1.0MM and decided no, but it was a relatively close call.
Recent buyers seem to think that 2-flats on the north side are worth somewhere between the high $100’s to the low $300’s. They’ve been selling briskly all over the north side.
“All you school geeks would probably be very interested in this article:
http://www.suntimes.com/news/education/2007536,CST-NWS-skuls24.article
Has a google clickable and zoomable map with all the tiers.”
Nice map, Bob.
I’ll never understand why someone would drop 300k+ for a two-flat and then rent out the other unit for anything less than half their total carrying costs. But I do believe this scenario is quite common.
I was trying to figure out what was off about that $1.3mm Bradley house, then I looked a the lot size–only 25′. Losing one of the pluses of most of the houses in Bell–the 30′ lot.
“Recent buyers seem to think that 2-flats on the north side are worth somewhere between the high $100’s to the low $300’s.”
That’s because, on a cash basis, they generally are. This one is around 7% cap at $310k, which is a pretty good return, without *any* value appreciation.
OT: cribchatters might find the interview with Mark Hanson interesting: http://kingworldnews.com/kingworldnews/Broadcast/Broadcast.html
It’s abundantly clear that there still exist plenty of buyers willing to bank on future appreciation.
“Bob on April 21st, 2010 at 12:43 pm
I’ll never understand why someone would drop 300k+ for a two-flat and then rent out the other unit for anything less than half their total carrying costs. But I do believe this scenario is quite common.”
http://investors.fiserv.com/releasedetail.cfm?ReleaseID=457516
“Bubble-era home prices won’t be seen again until 2025 or beyond in California, Florida, Arizona and Nevada”
Many other markets, including major urban centers in the Northeast and industrial Midwest, may need to wait a decade or more until prices return to their market peaks.
Thanks for the link Dan, I’m listening to it right now. I love how he calls the tax credit the “obama-coupon”
“I’ll never understand why someone would drop 300k+ for a two-flat and then rent out the other unit for anything less than half their total carrying costs. But I do believe this scenario is quite common.”
We did it, as we knew that eventually our careers and salaries would allow us to lose the tenant and deconvert to a large SFH.
And in fact, that’s just what we’re doing later this year when the lease expires.
We could never have afforded the place we have now without the rental income, although it’s true we bought before many of the lending requirements had been massively loosened.
Dan: I think I found a long lost brother in this guy Mark. He’s saying everything I’ve been saying about the market and I’ve never heard of this guy until today. he has the exact same theories that I do regarding the housing market! I though I was the freak but apparently I have company!