Sellling 1 Year Later…But Now 2 Years Later: 615 W. Deming in Lincoln Park
We last chattered about this large duplex 2-bedroom at 615 W. Deming in Lincoln Park in August 2008.
See our prior chatter and pictures here.
It sold in August 2007 and was re-listed less than a year later for $50,000 over the 2007 sale price.
It is still on the market and has been reduced several times.
The unit is now listed for $35,000 under the 2007 purchase price.
This duplex is 2000 square feet and has a very coveted 2-car garage. The building also has an elevator, so no worry about lugging groceries up stairs.
Ro Lebedow at Koenig & Strey has the listing. See the pictures here.
Unit #302: 2 bedrooms, 2 baths, 2000 square feet, family room
- Sold in August 1999 for $415,000
- Sold in August 2007 for $725,000
- Was listed in July 2008 for $775,000 (includes 2 parking spots)
- Reduced several times
- Currently listed for $695,000 (includes the parking spots)
- Assessments of $466 a month
- Taxes of $8275
- Central Air
- Washer/Dryer in the unit
JoeZ tells me to ignore the seller’s purchase price on his blog, and in instances like this he’s right. Its not my business that this buyer was dumb enough to blow 725k on this place in 2007.
At 695k I still don’t think this place is much of a deal. I am thinking 570-630k. Beautiful unit, though.
$199,999 at best. And even that’s overpriced.
Great flip!
How can you lose buying a 725K 2 bedroom?
At the end of the day, it’s still a 2 BR. I feel generous pricing it at $550k.
Meh i’d rather pay 700k for this than that 40 W. Schiller place. At least it has parking, AC, W/d and is about 50% larger.
Oh AND an elevator and your 2 parking spaces are in your own garage.
Wait, I thought we didn’t have a big run up in prices in Lincoln Park. That’s why they won’t fall very much, right? I guess 75% appreciation in 8 years (7.25% per year) is “modest.” I love the lines of BS the brokers feed people.
HD’s comment made me laugh.
Great unit. def. overpriced but way nicer than 90% of condos/sfh i see here.
can’t wait until that elevator has a slight problem. can’t be cheap to fix any issue….
199K would really be deal!
ChiGuy – I’ve got an elevator in my building, smallish (4 stories). Maintenance isn’t nearly as bad as you’d think – we spend under 1k a year to have people come out twice a year to re-build the motor, coat bearings, and general inspection. With that minimal investment only one issue (guy got stuck in it for awhile) in 8 years. The eventual replacement would be pricey, but that’s what a healthy reserve is for!
Ho hum drywall palace…
Unbelievable. In August 2007 everyone knew what the real estate bubble was and that it was about to pop. Why would a person purchase something overvalued if they weren’t sure whether or not they would be living in it long-term?!
Wicker,
I have an elevator in my building, too. It also is a smallish building at 4 stories. The thing is: I’ve never had to spend a dime on elevator maintenance or repairs. Thats all taken care of by my landlord. One one problem in eight years (green puke in it one St P weekend), but maybe thats because I don’t take the elevator. Because its only four stories and that would be being lazy.
There were (and still are) so many people who would read in the news that real estate prices were crashing, yet would still go out and massively overpay for a house. I can’t imagine what kind of cognitive disassociation this would require, but somehow these people did not think the news would apply to them. It would be like seeing on the news that a tornado was headed right towards your house and not even thinking about taking shelter.
Agreed that you don’t need too take the elevator to the 4th floor every time. But I’m sure it’s nice to have if you’ve got something large or heavy to unload. It also would be nice if you or your guests were on crutches.
Generally, I don’t think it’s wise to build buildings more than 2 or 3 floors without elevators since there are always situations where they would be extremely useful.
I’m not too proud to admit that I’m lazy. I live on the 4th floor and absolutely take the elevator; it’s there for that reason, plus it is easier than using the stairs.
And way better when getting groceries home.
What I find intriguing is the move towards including elevators in SFH in the higher end new construction. They would seem to take up too much room as the houses also include stairs. I wonder, if actually living there, how often I’d use one.
”
I have an elevator in my building, too. It also is a smallish building at 4 stories. The thing is: I’ve never had to spend a dime on elevator maintenance or repairs. Thats all taken care of by my landlord. One one problem in eight years (green puke in it one St P weekend), but maybe thats because I don’t take the elevator. Because its only four stories and that would be being lazy.”
I’m sure its not included in your rent, just like you aren’t paying property taxes
Hoho landlords aren’t charged the same property tax rates as individuals. I think its lower. 😛
“JoeZ tells me to ignore the seller’s purchase price on his blog, and in instances like this he’s right. Its not my business that this buyer was dumb enough to blow 725k on this place in 2007.”
No, no. In this case you pay attention to what the seller paid and add 10%. Joe’s advice is only related to preventing the market from going down.
“landlords aren’t charged the same property tax rates as individuals”
Why do you believe that Bob?
The assessed value may be generally “lower” (i.e., more grounded in reality), but the mill rate isn’t different. And the homeowner’s exemption doesn’t apply to rental properties (non-o/o or larger than 6 units).
“Why do you believe that Bob? ”
Because landlords, as small business owners, have a lot more leeway with regard to their taxes (and underpaying them). Even StevO on here has posted his formulas where he starts with a bottom line of zero and then fills in expense numbers.
When you’re out of W2land and the corporation reporting everything to the IRS theres a helluva lot of leeway to see things differently. And its hell hard to get caught and face serious penalties. As long as its not obvious plausible deniability can get you out of most situations.
“Because landlords, as small business owners, have a lot more leeway with regard to their taxes ”
Not w/r/t *property* taxes, dude.
You may have just mistyped, but I prefer to believe that you’re drunk this morning. Prost!
Residential (1-5 units) is assessed at 16% of market value.
Apartment bldgs (6+ units) are assessed at 22% of market value.
Bob, are you on crack?????
“Hoho landlords aren’t charged the same property tax rates as individuals. I think its lower.”
If anything it is the total opposite, we end up paying more taxes for the privilege of owning multiple units instead of one O/O home. So while life long renters continue to pop out one kid after the other, who is responsible for paying for the Public School education for their rugrats?
I own a number of NY (city and state) rentals and recently my taxes increased 4% to be followed by a 10% increase and to top it off, 4% more each year for the next 4 years! Please do some indepth research before you post these ridiculous and absurd comments…