This Old Town 3-Flat Is the “Perfect Investment”: 1530 N. Orleans
This 3-flat at 1530 N. Orleans in Old Town has been on the market since December 2010.
The listing calls it the “perfect investment” and that it is “priced to sell.”
The building is made up of three 1 bedroom, 1 bath units each with their own separate central air/electric and gas.
It appears that there may be washer/dryer hook-ups in each unit as well.
The listing says there are hardwood floors, fireplaces and new kitchens and baths.
The units consist of the following:
- Unit #1: 1 bedroom, 1 bath, rented for $1050 a month
- Unit #2: 1 bedroom, 1 bath, rented for $1100 a month
- Unit #3: 1 bedroom, 1 bath, rented for $1195 a month
The property was built in 1890 on a 25×125 lot.
It does not have parking available (street parking only.)
And yes- that is the EL directly next to the building.
The listing states: “CLOSE TO THE SEDWICK EL & VERY LOW NOISE SINCE THE TRAIN IS SLOWLY MOVING.”
What will it take to sell this “perfect investment”?
Linda Broznowski at @properties has the listing. See the pictures here.
1530 N. Orleans: 3-flat, 3 bedrooms, 3 baths, no parking
- Sold in April 1986 (price could not be determined)
- Sold in February 1991 (price could not be determined)
- Originally listed in December 2010 for $439,900
- Currently still listed at $439,900
- Taxes of $9900
- Monthly income of $3345
- Separate utilities for each apartment
- Central Air
Ive looked into this property and the absolute biggest problem is that it literally is 1 foot away from the el – you could practically serve coffee to the morning commuters. That was a deal breaker for me – with that location, you are never going to realize a profit.
El = no
I have no idea what it would take for me to buy this place. I think I would be OK if I were to inherit it.
I always thought the El was loud at the turns. Lots of screeching and steel on steel soundtrack.
At 400k, its a little over a seven cap with those rents, which seem reasonably sustainable. Doesnt seem like a bad investment prop, if the building and mechanicals have been maintained well.
“That was a deal breaker for me – with that location, you are never going to realize a profit.”
Clio- I thought you said that all real estate appreciates so as an investor, even if the rents don’t cover the costs right now, you’ll still have appreciation.
The current owner certainly has made a profit off of this. So why not the next owner?
I lived by the El for a year, it’s never quiet even when it’s slow moving, especially on corners. Not everyone is bothered by it, but I suspect more people would be than not. I guess renters maybe mind less than owners?
“Clio- I thought you said that all real estate appreciates so as an investor, even if the rents don’t cover the costs right now, you’ll still have appreciation.”
Of course the new owners will realize a profit – however, there are much better deals out there.
what I’d be interested to know is how the L affects turnover in the building. ie, do you end up with renters never renewing because they thought it would be okay, but then find that it isn’t. More turnover could lead to a higher vacancy rate and possibly needing to discount the rent.
Some El corners have a lot of screeching, some don’t. That has been pretty constant but it can change. I used to know a guy who lived right by the El turn at Six Corners in Bucktown and there wasn’t much annoying El noise at all – I kind of liked it. CribChatterers seem to despise the el, but it’s hard to see that it’s that big of a deal for a rental property.
I think this one pencils pretty well – great location and pretty nice looking units.
If you’re not going to live there, why would you care that it’s by the El? If you can consistently find three renters, what’s the difference. Need to see financials to know whether it stays fully rented. If so, it needs to come down some to make sense, but it’s not too far off.
My prediction: someone buys it, rents it, spends no money on maintainence. Lets it fall apart while maximizing cash flow. Then makes $500 contribution to appropriate campaign fund City buys it at above market value, knocks building down and turns land into either: (a) dog park, or (b)place for city to park snow plows / salt trucks.
“the perfect investment” in this case just means that you would never want to live there.
Also, someone laid a foundation next door but never completed the project. Every summer, the open foundation fills up with water and looks like a cesspool.
“CLOSE TO THE SEDWICK EL & VERY LOW NOISE SINCE THE TRAIN IS SLOWLY MOVING.”
Quite possibly the most humorous statement I have ever seen in a listing.
The seller does not need to disclose that a tenant died in the building last fall and was wheeled out in a body bag. The noise from the El is a far greater issue. However, as mentioned earlier neither should be issues as this will generate significant cash flow. These units are in demand and will be occupied with above average tenants. Clown on the location and proximity to the Segewick projects all you want, this is three blocks away from Wells, it’s on the Brown line, and this entire block is occupied by a few SFHs, young male and female tenants, and owners of loft and mid-rise condos. It’s a desirable spot.
Who wants to go in on this with me? I’m looking for 2 others – we can buy it, convert to condos and each have a 1 bedroom for around 140k
” I used to know a guy who lived right by the El turn at Six Corners in Bucktown and there wasn’t much annoying El noise at all”
JJJJ – If by six corners you mean the Damen, Milwaukee, and and North Ave. intersection that is far from a turn in the el tracks.. It is a slight bend at best. Check out google earth and you can see what I mean. The true 90 degree turns make much more noise than that.
I live on the el tracks and like to think of it as moving sculpture. It only bothers me on rare occasions. Right now is one of those times. We have just started opening the windows again and I have to get used to the added noise while watching TV. It typically takes about a week to not notice it again. Other than that it is not an issue when we sleep.
There is some construction on the tracks near our home. Ironically this means that the trains are sometimes slower and using brakes. This actually makes the noise slightly worse.
clio – I will, but I am going to convert my piece to Section 8 housing.
“is that it literally is 1 foot away from the el – you could practically serve coffee to the morning commuters.”
Make the third floor a starbucks – boom – you just massively increased the cashflow of this puppy.
I spent two years working in an old building right next to the L on Illinois and Franklin. Everytime a train came by, we lost our phone connection.
But I’m a train fan and loved watching them out the window, so there’s pluses and minuses. I enjoyed working there, but wouldn’t want to have lived there.
Also, it’s not really the building’s fault that it’s a foot from the L. From the photo, I’d guess the building was there well before the tracks were built (and that section of tracks came into operation in about 1900).
Was the CCRD site hacked or is it my computer?
The biggest struggle with this property will be retaining tenants. Getting them to stay is how the landlord WINS the battle and makes a better proift. There are less expenses, risk, and headaches when a solid tenant renews a lease.
Living directly on the EL tracks might get overlooked or accepted for the short term but, after living there for a short time, I suspect that most of those tenants will be moving at lease end. They will talk to friends, see other apartments in the hood that rent for just slightly higher, and unless it is at such a huge savings over market rate they will be embarrassed about where they live. That will lead to higher turnover than typical and hurt the overall profit for this owner.
Best use – Big time athlete buys this and tricks it out for his posse. They are all freeloaders anyway and it’s just money down the drain. Haaaa haaaa that would be funny.
“If by six corners you mean the Damen, Milwaukee, and and North Ave. intersection that is far from a turn in the el tracks.. It is a slight bend at best.”
You’re right – never realized that. Still, I would check out the noise by this property before summarily discarding it.
Wait – seriously – do you think this might make a good home for deaf people. I really am not trying to be obnoxious – but it seems that this might be the perfect place for the deaf.
I think it would be worse for deaf people because of the vibrations. They would be more sensitive to that.
True – is this zoned for business? If so, there are several things you could do. Also, can you put a billboard on the roof? There are so many things you can do if zoning would allow!!!
“the El turn at Six Corners in Bucktown”
As a lifelong northsider, it behooves me to mention also that there is only one “Six Corners”; that is Irving, Milwaukee and Cicero.
Anything else is either “the six corners at…” or known by it’s local name; North & Damen, or Lincoln & Belmont/Belmont & Ashland.
I love the billboard idea. That would probably be enough -you wouldn’t even need tenants!
My dream, if I could re-live life (and be born 20 years earlier), would have been to buy a three-flat on Sheffield overlooking Wrigley back in the 70s when one could probably have been had for less than $100K, and put a billboard up. By the 1980s, once the Cubs became a huge deal, I’d be pulling in six figures every year from the billboard, my investment would be paid off and my days of having to work would be over.
you could convert this place to a school for the deaf
cash COW!
“My dream, if I could re-live life (and be born 20 years earlier), would have been to buy a three-flat on Sheffield overlooking Wrigley back in the 70s when one could probably have been had for less than $100K, and put a billboard up. By the 1980s, once the Cubs became a huge deal, I’d be pulling in six figures every year from the billboard, my investment would be paid off and my days of having to work would be over.”
Sure, but why not just buy microsoft or whatever at the right time, pick the right lottery numbers, or any number of such things? What makes the billboard a more enjoyable (or perhaps more hypothetically realistic) dream?
clearly the local, affective connection
far more enjoyable
http://www.chicagotribune.com/news/local/breaking/chibrknews-users-being-redirected-from-recorder-of-deeds-website-20110412,0,92672.story
“Earlier, Recorder of Deeds Eugene Moore said he was unaware of any problem. “No, I haven’t heard anything about it,” Moore said at 9:45 p.m. “Let me call my office.”
Funny. Does Gene Moore even know where his office is?
“9:45 p.m.”
a.m. More entertaining.
“What makes the billboard a more enjoyable (or perhaps more hypothetically realistic) dream”
If you bought Microsoft or won the lotto tix instead of buying the Sheffield building then no one would likely start a fight on your front porch or pee on your wall on a regular basis. Man I miss living at Sheffield and Clark. Think that was way back in 1993 to 1994 man those were the days!
Those are good points. I think it’s the emotional connection, as I grew up in Wrigleyville and am sentimental about Wrigley.
I suppose I could have bought %100,000 in Microsoft shares when they went IPO in 1986 and retired on those a few years later, but there’s no emotional tie with that. I love the idea of owning the building, living on the top floor with a nice view of the ballpark, and watching the checks roll in for doing nothing.
“I love the idea of owning the building, living on the top floor with a nice view of the ballpark, and watching the checks roll in for doing nothing.”
you stole this business plan from the cubs
haha, not quite, he’d have to hire Soriano as property manager and Kosuke as the engineer, each at 20 mil a year!
You can check zoning at https://gisapps.cityofchicago.org/zoning
Can’t get the page to load, by my guess is its RT-4.
Very funny, CH!
Dan #2
I think that you would have to sit on your lawn “protecting your property” while wearing a pair of vintage early 80’s cutoff jeans and a Cubs jersey. You would clearly be sitting in an slightly rusted nylon strapped aluminum folding chair smoking short fat stogies while grabbing a non stop supply of ice cold Old Style cans out of your Coleman cooler. If one got close enough to hear your voice it would be clear that you were bitching about the crowds, heat, team, or whatever gripe you could drum up at that exact moment in time. Even if the Cubs won the World Series you would find something to bitch about.
Now that was my memory of the local “colorful” neighbors around Wrigley when I was a kid.
I don’t know what everyone is smoking, but this is a horrible investment at this price! When you figure in taxes, leasing commissions( no way you rent those dumps on the L without help), maintenance and the fact that you will never keep good tenants because of the L and the ghetto location, it’s a dead bang loser!
Also, dont forget that based on the pics it needs $25,000 in new porches. Run don’t walk from this dog!
I don’t know what everyone is smoking, but this is a horrible investment at this price! When you figure in taxes, leasing commissions( no way you rent those dumps on the L without help), maintenance and the fact that you will never keep good tenants because of the L and the ghetto location, it’s a dead bang loser!
Also, dont forget that based on the pics it needs $25,000 in new porches.
For all you math whizzes, please enlighten me on how you get any cash flow let alone a 7 Cap?….
“The seller does not need to disclose that a tenant died in the building last fall and was wheeled out in a body bag.”
So what? This happens on Lake Shore Drive all the time, and the property values aren’t affected.
“I spent two years working in an old building right next to the L on Illinois and Franklin. Everytime a train came by, we lost our phone connection.”
I wonder about office tenants in Friedman Properties buildings in River North near the fire station at Illinois & Dearborn, that has to be the busiest and loudest (sirens) firehouse in all of Chicago. Ear piercing, how the office tenants above Ben Pao can hold productive business conversations with that racket is a mystery.
“True – is this zoned for business? If so, there are several things you could do. Also, can you put a billboard on the roof? There are so many things you can do if zoning would allow!!!”
This is a subject never yet discussed on CC. I’ve often wondered about it, but never researched the billboard code. Where is it? It’s not part of the zoning code. There are TONS of building along the Kennedy where anyone (or condo assoc.) could install a billboard, but there aren’t any. There must be some code & significant rules for this, otherwise every single building would have a billboard on top. Where are the rules for this? Anyone know where this code is? What would keep anyone also from putting up illumiation advertisting at night on a wall. I think I’ve seen that on the Catholic Church, going southbound, right before the Division exit.
“I don’t know what everyone is smoking, but this is a horrible investment at this price! When you figure in taxes, leasing commissions( no way you rent those dumps on the L without help), maintenance and the fact that you will never keep good tenants because of the L and the ghetto location, it’s a dead bang loser!”
HowieF: don’t try and figure mathematics out, that’s not how Chicago RE investing works, you just buy, buy, buy, and let appreciation take care of it!! don’t worry about a single thing, just listen to clio.
“CLOSE TO THE SEDWICK EL & VERY LOW NOISE SINCE THE TRAIN IS SLOWLY MOVING.”
If I were forced to live near the “el”, it would be where the train just whizzes by. As someone else mentioned the noise near the stops would be worse. The PA announcements, screeching wheels, and people screaming that their phone was just stolen as I witnessed last week – at the Sedgewick stop.
Dan-
Not suggesting it should be disclosed. Just sharing a haunting memory that I have when I think of the building. The smell that poured out of that building for the week following the death still haunts my nostrils. It was the first time I saw a body get wheeled out of a building/home/etc.
It’s incredibly loud at this specific turn. I can hear the turn from well over 300 feet away.
Re: billboards. Our HOA in River North has been exploring for several years the possibilities of putting in a billboard as a way of reducing the condo fees. I think the problem is a lack of people wanting to advertise at the rates the Board wants and not any zoning issues.
jp3chicago:
About the Wrigley neighbors in that era, my memory is the same as yours. Very low class, for the most part.
You forgot to add that I’d be overweight, balding and have facial hair, and that during batting practice before every game, I’d be out there with a baseball glove. Apparently I’d have no job to be at even though all games were day games at the time.
Sold a building in Lakeview where the revenue received from signage was significantly higher than the fine from zoning… Would likely be the case here…
No alley so no parking.
Right on the El.
I don’t like this property at $439.
Maybe $350
If these really have laundry, you could get more in rent. I don’t want to guess without hearing the L, but it’s amazing what people will pay to live in Old Town and equally amazing how crappy most of the rentals are over there. I picked up a rental listing in February – 1 bedroom with parking for $2200. Thought, Great I’m going to have to sit on it until May. Had about a dozen showing requests in three days, rented to the first person who saw it. In February.
“Not suggesting it should be disclosed. Just sharing a haunting memory that I have when I think of the building. The smell that poured out of that building for the week following the death still haunts my nostrils. It was the first time I saw a body get wheeled out of a building/home/etc.”
OK, that’s alot different scenario then a senior-citizen on hospice who peacefully goes in a LSD high-rise.
“Our HOA in River North has been exploring for several years the possibilities of putting in a billboard as a way of reducing the condo fees.”
How are they going about researching it (literally?) Where are the rules, and billboard ordinance? would you have a link? thanks…
Aaron:
Fyi the City is cracking down on all billboards without permits-$10,000 fine! Nearly impossible to get a new BB.
Anyone who counts on that income without a verifiable permit is a bigger fool than the chump who buys this property.