Should You Rent the 2/2 or Should You Buy It? 2754 N. Hampden in Lincoln Park
This 2-bedroom at 2754 N. Hampden Court in Lincoln Park just came on the market.
It’s a complete rehab and has most of the features buyers look for.
The kitchen has dark cabinets, stainless steel appliances and a tile backsplash.
There’s crown molding and dark wood floors in the main living area.
It’s a split floor plan with the bedrooms on opposite sides of the unit.
Parking is included and there’s a washer/dryer in the unit.
There’s no central air but there is wall air conditioning.
This building is a full-service building with a doorman, an exercise room and a rooftop pool.
I used the mortgage calculator on Baird & Warner’s website with a 20% down payment on the asking price (or $75,980) with a 4% 30-year rate.
Monthly payment is: $2625
Should you buy it or rent it?
Karen Pence at @Properties has the listing. See the pictures here.
Unit #1603: 2 bedrooms, 2 baths, 1300 square feet
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- Sold in May 2013 for $212,500 (was this one unit combined with another for a 2/2?)
- Currently listed for $379,900 (parking included)
- Assessments of $603 a month (includes pool, doorman, cable)
- Taxes of $5905
- No central air- wall units only
- Washer/Dryer in the unit
- Bedroom #1: 14×12
- Bedroom #2: 12×11
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HOA $603
Taxes $492
Interest $728 (5/5 ARM at 2.875)
$30k in transaction costs spread over 5 years = $500 a month
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$2323
This one makes more sense to rent IMO.
But it’s not available for rent. Maybe you’re comparing it to 1903 which is available for rent at 2350 but doesn’t seem to be as nice. Then you have to figure in the tax benefits and the fact that rents will rise and the fact that this will sell below ask. Always best to use the NYT rent vs. buy calculator.
“But it’s not available for rent. Maybe you’re comparing it to 1903 which is available for rent at 2350 but doesn’t seem to be as nice.”
Who me? I’m just comparing it to a “theoretical rent”. I’m not saying this would rent for $2350, but there needs to be a bigger gap in the rent/buy equation for someone to buy a 2/2 IMO (I assume they will move in 5-7 years).
“Then you have to figure in the tax benefits”
Varies from person to person
“and the fact that rents will rise”
And there will be costs of ownership, etc.
” and the fact that this will sell below ask.”
Negligible. Maybe $50-100 less per month in interest.
I assume this would rent for around $2600-2800 (maybe I’m wrong?). So, you’d save maybe 3-5k per year by owning. Times 5 years is 15-25k. You have at least 25k in equity risk there.
When I used to live in this building (in the mid-1990s), all the one-bedroom units were condos, but all the end unit 2-beds were rentals (perhaps owned collectively by the association?). Is that still the case, or is 100% of the building condo now?
I think this would have sold already if it had a lake view… as it stands, not sure how it will go but the place is certainly nice enough in a good location to justify 2500 a month
speaking of rents, $3/SF is becoming cheap now.
http://www.chicagomag.com/real-estate/October-2013/Amenities-Expand-Your-Apartment-at-AMLI-River-North/
studios basically starting at $4/SF.
amenities, amenities, amenities! just wonder where the limit is.
Wow, those are insane rents. Not in any way worth it to me.
“studios basically starting at $4/SF.”
Nah, the most expensive studio that they show as available is *under* $4psf.
So, amenities include lots of things you can reserve–what’s it cost to reserve that dining room & kitchen that’s ‘already booked for T’giving’?
alright…i glanced at it and exaggerated a bit .but i show the studios pricing as high as $3.66 and as low as $2.97.
pretty darn expensive.
then there’s that other place ~500 N Lakeshore that is solidly $4-$5/SF.
prime locations and prime amenities, but just wonder when things at least flatten out for a bit. though with Yellen coming online who knows when that will be.
This unit just reduced $10,000 to $369,900.