Old Town 2-Flat Reduced By $50K: 1618 N. Cleveland
We last chattered about this 2-flat at 1618 N. Cleveland in Old Town in February 2010.
See our prior chatter here.
Back then, the listing said it was a “terrific investment property in perfect location.”
Nearly 2 months later, the listing now says “convert to single family in highly desirable neighborhood.”
The 2-units are as follows:
- Unit 1: 3 bedrooms, 1 bath, currently rented for $1200 a month
- Unit 2: 2 bedrooms, 1 bath, currently rented for $1200 a month
There is a 2-car garage with the property.
There is also central air and heat with is separately metered and a washer/dryer in the basement.
Does it now make sense to buy it as a single family home possibility?
Sandra Adler at Prudential Rubloff still has the listing. See the pictures here.
1618 N. Cleveland: 5 bedrooms, 2 baths, 2 car garage, 2-flat
- I can’t find an original sales price but last sale was in 1998
- Was listed in February 2009 for $590,000
- Reduced
- Currently listed for $540,000
- Taxes of $10,712
- Central Air
Gee, I can’t imagine. The current price, with the current rents, is 3.3% cap before maintenance and vacancy. As a rental, it’s worth less (~$300k) than it would be as a bare bit of dirt (~$500k).
Its probably cleaner sleeping on that patch of bare dirt too… capital Y-U-C-K!
Also, current price is *only* $530,000.
“than it would be as a bare bit of dirt (~$500k).”
I think you have wildly optimistic assumptions regarding true land values in this post-bubble environment.
“I think you have wildly optimistic assumptions regarding true land values in this post-bubble environment.”
So long as I still see teardowns in less-expensive areas actually selling for more than $400k, I’m pretty sure an OT lot would sell for $500k.
That said, I had forgotten that this is a 2/3s lot (only 80′ deep). Therefore, the land value is about the same as the rental value–about $300k.
I admittedly don’t get out much – but – I don’t see very many tear downs anymore, and, last months new home starts figure being a record and generational low sort of confirms my observations. The last time new home starts was as low as February 2010 was in 1960 and that’s not adjusted for population changes either.
“I don’t see very many tear downs anymore, and, last months new home starts figure being a record and generational low sort of confirms my observations.”
New SFH starts in Old Town and comparable ‘hoods were a rounding error at the peak of the recent bubble, even within the context of *just* the city of Chicago. There don’t have to be many for them to still be driving the price of the (relatively rarely available) teardowns in those ‘hoods.
Anon(tfo) you may want to check Redfin for lot sales/tear downs for the last 6 months. I’d do it myself but I’ve got some other stuff going on right now. I would sort of like to know what a recent lot value is in OT is
What would it cost to swap into a SFH? ~100k? I have no experience with serious rehab / reconfiguration jobs. That vs. turnkey SFH in the same area would most likely be the math.
Would getting a construction loan be tough after mortgaging this property? Or do you do that in tandem?
What is tear down cost? 30k?
Also the current rents here indicate massive rent decreases (and RE valuations) in less desirable neighborhoods. Currently I have a few friends living in a 3/1 in a less desirable/gentrified ‘hood for 1,050/month. They’re all moving to Wrigley soon as they can basically get a better neighborhood for similar rent these days.
It really doesn’t bode well for a lot of the bubbly ‘hoods whose only claim to gentrification was people were getting priced out of more well established neighborhoods.
“Anon(tfo) you may want to check Redfin for lot sales/tear downs for the last 6 months.”
How, pray tell, does Redfin designate a “teardown”? Hadn’t noticed that as a search option.
“I would sort of like to know what a recent lot value is in OT is”
1835 Mohawk (prob teardown) sold for $460k a little over a year ago. 1901 LPW (questionable as “OT”, but a genuine vacant lot) sold for $900k in Feb-10.
I like it when people don’t even bother cleaning the place before taking pictures. I know it may their tenants, but WTF! It is not nearly as much of a shit hole on the outside as it is on the in.
I have a friend who lived in a dump similar to this at 16XX N. Weiland and I believe he and his 2 roommates paid I think $1800 (total), so $1200 might be a bit low and would probably get this toilet rented very quickly
Off the subject (sort of):
Does anybody have any leads on a reasonable rental in a safe neighborhood for a beginning family? My partner’s daughter/bf are graduating from college and want to move to Chicago with their new baby. I think I have a place in Bucktown (walkup, 2BR/2Bath, in-unit laundry-important with a 5 mo-old, parking, central air) for $1450, but wanted to make sure I am on the right track given I’ve been out of the rental market for some time. And don’t just refer me to Craigslist, although that is probably the best way to go.
Thanks!
Oh, and I’d have them live with us before living in this squalor…
Also: missed 1615 Mohawk–2-units on a small lot, which sold Jun-09 for $350k.
jon sounds like a good place for reasonable rent. just make sure it isn’t just a 1000sqft
“own (walkup, 2BR/2Bath, in-unit laundry-important with a 5 mo-old, parking, central air) for $1450, but w”
“Does anybody have any leads on a reasonable rental in a safe neighborhood for a beginning family? My partner’s daughter/bf are graduating from college and want to move to Chicago with their new baby. I think I have a place in Bucktown (walkup, 2BR/2Bath, in-unit laundry-important with a 5 mo-old, parking, central air) for $1450, but wanted to make sure I am on the right track given I’ve been out of the rental market for some time.”
Don’t think I’m telling you anything you don’t know especially with some of the recent chatter, but Logan Sq probably costs a little bit less or gets you more for the same price. I say that without having actually looked at any rents. We’ve lived in the area with our now toddler and have really enjoyed the neighborhood, more with the kid than we did without.
“Does anybody have any leads on a reasonable rental in a safe neighborhood for a beginning family?”
Lincoln Square has lots of young families & is reasonably safe. Also – you can check crime stats at everyblock.com.
More facts would help regarding the rental. Need access to Metra? EL? Will they have a car? What’s the budget? Do they want to walk to Lincoln Park Zoo?
On redfin it looks like lots were selling between 900,000 and 1.2M in 1700, 1800, and 1900 hundred blocks of mohawk in 2008 and 2009 (post bubble?) Cleveland Ave was even higher in these blocks. That multi million dollar home that was chattered about a month ago, they paid 1.25 million to tear down a house if I remember correctly. Does being on the 1600 block make that much of a difference that it would half the price?
I just saw that someone said it only 2/3’s of a lot
Does being on the 1600 block make that much of a difference that it would half the price?
^^^
I think the answer to this is yes. I know the area well and there is a big difference between those blocks, so it would not surpise me at all if it had that big of an impact. Cross North and it will cut in half again.
Can someone help me find the price a home sold for? I was looking at 1615 N Wolcott #201 in Bucktown for a while and it finally dropped to a price that I could afford. The only problem was that it “sold” immediately. I haven’t found the closing price.
Can anyone please help? 1615 N Wolcott #201… just curious as to how much it sold at.
Many, many thanks… JasonM
I already responded to your question when you posted it in the other thread.
$550,000.
Thanks Sabrina!