Short Sale: More than 50% Below the 2007 Price in Belmont Cragin: 2516 N. Lotus
We’ve been chattering about cash flow for multi-unit buildings like this brick 2-flat at 2516 N. Lotus in the Belmont Cragin neighborhood (near the Brickyard Mall) on the city’s Northwest Side.
The listing says it’s a “short sale”.
It’s listed $205,100 under its 2007 purchase price.
Will this property ultimately sell for less than its 1999 purchase price? If so- is it a steal for an investor?
The listing says the building is in “great shape” and has a finished basement. There’s only 1 interior picture available.
German Llanos at 24 Hours Chicago Real Estate LLC has the listing. See the listing and pictures here.
2516 N. Lotus: 2-flat, 8 bedrooms, 3 baths, 2 car garage
- Sold in August 1999 for $188,000
- Sold in January 2007 for $405,000
- Originally listed in March 2009 for $230,000
- Reduced twice
- Currently listed at $199,900
- Taxes of $5141
Well, that’s certainly not a very attractive return if it even had tenants. But it doesn’t have tenants and no pictures. So there must be issues.
A brick place, (unknown condition), but not close to trains, not upgraded (reno, old plumbing, old wires, etc), seems livable.
rents about 750 per unit (for 2, 500 for 3) seems reasonable for the area?
min 175K to be safe (if 3 rentable units), 150Kish for a deal; depending on repairs needed. Taxes are a high.
there’s one picture.
“rents about 750 per unit (for 2, 500 for 3) seems reasonable for the area?”
Kind of low. Make it like $825 and $650 or so.
As a part owner of a 2 flat, I can say some things for sure;
2- and 3-flats will never make you rich, but the tax bennies can make it worth it. (exception is if you own the property outright and can get good rents. You’ll do well, but you’ll still never be “rich”)
This is the kind of return-to-reality pricing that others have talked about in the rental property market. We have long wanted to expand our puny RE empire, but we could clearly see that there was NO WAY to make the numbers work on a modest property with average per unit prices over about $130k. Once 2 flats crept over $300k, we just scratched our heads wondering how they could ever get rents to cover that nut. (oh! that’s right! there were No Docs, and Option Arms and Zero Down loans!) We’re still looking, for something a bit bigger, like a 4 to 6 flat, and maybe we’ll finally get there when more places come back down to earth and “cash flow” reality.
logansquarean: is that 825 for the top and 650 for the middle, how much for a garden/basmt unit (if finished)(id think around 500)(these all seem to be 3/1’s).
I just based my numbers of the listing, not taking it as the truth, but figuring if it would be worth pursuing. (Since I haven’t live in the area and done the research)
the lot size is not bad at all.
I agree, with trying to pursue 4-6 flats but the they are a bigger leap than a 2-3. GL with ur empire building, hopefully I can add one more prop to my fiefdom b4 this downturn is over.
All’s i am looking for is cash flow, of course anybody can say that, but once you find one you would like more. kind of like crack 😉
What about buying this building, living here, and renting out the other unit. You could cover at least 1/2 the mortgage, right? But is it worth it in the long run? I’m not sure.. just asking.
the 3 bedroom at $850, the 2bed at $650. The basement is surely illegally converted? Looking at the Reader, there’s a 2BR, heated, for $725 over there. Craigslist shows a large 3BR for $100 heated.
The hood is a little distressed, maybe getting a little sketchy? Redfin shows 7 properties for sale on Lotus between 2400-2600 N.
Do due diligence, look up crime stats, and so on.