Three Bedrooms For $325k in Lakeview: 735 W. California Terrace
I’m sure many of you are familiar with Victorian Lane in Lakeview- the funky gated street. This 3-bedroom duplex down unit at 735 W. California Terrace is listed at $325,000 – with a parking spot included.
Is this a deal?
Here’s the listing:
Huge 3 br 2 bath duplex condo at perfect Lakeview location — a few blocks from El and lakefront! Upstairs, elegant features incl hdwd floors, fireplace, and two spacious bedrooms with large closets.
Spiral staircase leads to roomy lower family room, large br with fireplace, full bath, laundry room and extra large storage room. This condo and deeded parking space are located at end of quiet, gated private drive.
Berg Properties has the listing. See more pictures here (including of some of the rooms that are duplexed down.)
Unit #1: 3 bedrooms, 2 baths, 1500 square feet, duplex down
- Sold in March 1993 for $125,000
- Sold in September 1998 for $188,000
- Currently listed at $325,000 (parking space included)
- Assessments of $343 a month
- Taxes of $3,144
- Central air
- Washer/dryer in the unit
I’m familiar with this place. It’s at a noisy location at a bad intersection, where it is difficult and dangerous to pull in and out of the parking lot.
Nice place, though, and sounds like a good deal till you consider the 1998 price of $188K.
That means about $225K is the max price for this, and maybe I’m being generous, for this housing market looks like it may overshoot on the low side, given our current financial and credit situation.
The 1998 was an overpay. And this place is in very bad shape (plus the finished basement looks dark, dank and unsuable for anything but a workout room. Absolute max of $225K.
It definately needs a redo, but it at least is decent-sized. But, YEAH, it does need work.
So, 4% per year since 1993 sale price? Seems a little low, given that ’93 was a down year, too. 5%/yr from the ’93 price gives $260k.
But, there’s another 3/2, appearing to be in similar condition, on craigslist for $2300/month, and a 2/1 for $1600. If those asking rents translate fairly well into actual rents, it’s worth more than $260k as a rental, tho $325k may be a little rich.
Yeah I was pegging this place as 300k. So its not a gross stretch to ask 325k.
The location is pretty darn convenient to the Belmont stop and many bus routes and is perfect for a certain ‘diverse’ demographic segment. Although this segment probably won’t be having kids so maybe no need for the extra bedrooms.
That kitchen will have to be redone though so maybe this place is worth closer to 260k than 300k.
Have you looked at all the pics? Far more than just the kitchen needs to be done. I was discounting heavily for the amount of work that needs to go into it.
“Far more than just the kitchen needs to be done”
Yeah, but for a rental it’s fine. If it would really rent for $2300, it’s easily worth $290k+.
Any links to comparable rentals on craigslist that rent for $2,300?
Anon – With a 6.5% cap rate the unit is worth around $315k. Looks priced right if the rents are right.
Steve – could you walk me through how u figure out cap rate?
Net Income / Purchase Price. Do not include financing expenses in your calculation.
thanks
HD:
I searched Craigslist rentals for “California Terrace”. As I noted, there is a 3/2 listed fot $2300, a 2/1 listed for $1600. As I noted, I don’t have any idea if those asking rents are real, collectable rent rates. I **NEVER** make up facts; it’s too easy to get called out (hi Stevo!). Sometimes memory fails and I’m wrong, but if I’m guessing, I say so.