Vintage Beauty in East Lakeview Back on the Market…Again: 507 W. Aldine
We first chattered about this 2-bedroom vintage unit at 507 W. Aldine in East Lakeview all the way back in February 2009.
See our February 2009 chatter and pictures here.
It has since gone into short sale (for nearly a year now) and has been under contract several times (from what I can tell) only to re-appear for sale again.
It has also been reduced again by another $14,000.
The unit has all the bells and whistles except central air. It has deeded parking (rare for East Lakeview) and washer/dryer in the unit.
It also has a wood burning fireplace and a dining room.
The kitchen has updated cabinets, stainless steel appliances and granite counter tops.
What will it take to finally sell this property?
Brent J. Rosenbower at Sudler Sotheby’s still has the listing. See the pictures here.
Unit#2B: 2 bedrooms, 2 baths, dining room, no square footage listed
- Sold in May 1995 for $154,000
- Sold in June 1998 for $199,000
- Sold in April 2000 for $243,000
- Sold in March 2007 for $379,000
- Was listed in February 2009 for $410,000 (included the parking)
- Reduced
- Was listed in March 2009 for $399,900 (included the parking)
- Reduced
- Was listed in May 2009 for $375,000 (includes the parking)
- Reduced
- Was listed as a short sale in June 2009 for $339,000
- Under contract
- Re-listed in September 2009 for $339,000
- Under contract
- Re-listed in May 2010 for $325,000
- Assessments of $344 a month
- Taxes of $4878
- No central air- only window units
- In-unit Washer/Dryer
- Wood-burning fireplace
- Deeded parking included
- Bedroom #1: 14×12
- Bedroom #2: 12×11
Back on the market AGAIN.
This is a beautiful apartment but given what I’m seeing happening to prices, it will go under $300K.
i think it goes for $290,000 or so. That is, if the owners are able to sell at that price.
so it seems it went under contract as a short sale: the seller accepted the price but then the bank still has to accept it. Seems like this is the all-too-common scenario where the bank ended up not accepting the offer. No wonder Redfin won’t deal in short sales.
The current desctiption doesnt mention short sale/bank or third part approval. Anyone actually go through or know anyone who had a successful short sale on either side???
Russ, have you had any loans close for short sales? Any horror stories to share with us?
` Sold in May 1995 for $154,000
` Sold in June 1998 for $199,000
` Sold in April 2000 for $243,000
` Sold in March 2007 for $379,000
Looks like the March 2007 buyer got stuck holding the bag.
That’s quote an impressive run. $154,000 to $379,000 in less than 12 years.
The next 12 years might be in reverse.
“The next 12 years might be in reverse.”
I’m pretty used to the bearish attitude in general around here (and agree, typically) but do you honestly think this place will sell at $154k (or even $154k + inflation) in 2022?
Ha! I said maybe. In real dollars, probably not nominal dollars. But if the stock market today up 3.75% can be totally disconnected from reality maybe the price of this unit might drop too. Stranger things have happened.
“Barry on May 10th, 2010 at 8:09 am
“The next 12 years might be in reverse.”
I’m pretty used to the bearish attitude in general around here (and agree, typically) but do you honestly think this place will sell at $154k (or even $154k + inflation) in 2022?”
Short sales are tough if the bank has not yet approved it. You need a ton of patience.
I have seen several contracts fall apart on short sales because the buyers could not get a straight answer from the bank. Many want to close by June 30th to get their $8k and the short sales can’t guarantee that in many cases.
Almost every client I have trying to buy a short sale has another offer out on a property as a back up.
“do you honestly think this place will sell at $154k (or even $154k + inflation) in 2022?”
$154 + 3% per for 27 years is $342k. Non-impossible.
$154 in 95 +CPI is $219k now. $199 in 98 is $265k now. And $243k is $307k now.
“$154 + 3% per for 27 years is $342k. Non-impossible.”
Nothing is impossible in our post bubble world, but I think it would be miraculous if places like this in East LV sold for $342k in 2022.
The real estate for the next 20 years inflates as fast as the funds in my checking account (less than 1%) it may only 100 years to double again.
“Nothing is impossible in our post bubble world, but I think it would be miraculous if places like this in East LV sold for $342k in 2022.”
Oh, I agree with you, but that’s far from the usual HD “1999 nominal prices aren’t even the bottom” hyperbole. 1999 + inflation is about where this place is *now*.
When you’re looking at rent vs. own when valuing places like this, do you take into account the cash value of tax deductions from RE taxes and mortgage interest, and your principal pay-down? If so, and you assume you could rent this place for $1600 a month with parking, I get to a break-even valuation of $320,000 with 20% down. If it goes for $290,000, with 20% down and owner-occupancy, and it sells 5 years from now at $290,000, I get an IRR of 9.5% (taking into account cash value of interest and RE tax deductions). That doesnt seem like a horrible deal… even in this market.
“I get an IRR of 9.5% (taking into account cash value of interest and RE tax deductions)”
Did you include transaction expenses on both ends and some sort of maintenance reserve? And something for the op-cost of the $58k?
Not that I disagree that it’s probably a good risk at $290 if you’re pretty solid on your 5-year-+ holding period.
I included closing costs in my up front investment (on top of the down payment) and included 5% sales cost in year 5. The whole thing really depends on how low the basis is, and whether or not the value is steady over the next 5 years (as opposed to declining). I’ve seen other 2/2’s and 2/1’s where this looks like it makes sense, I’m just not sure what neighborhoods are the safest bets for maintaining value. RN? LP? Probably not Lakeview…
Stay far, far away from ANY property that is being sold in a short sale…regardless how great the place might be.
It is just not worth the endless hassles and crap you will encounter from the banks. Even if you do survive the months long deal, you never know what kind of crap lies under the drywall. Places with mold, no maintenance for a couple of years, missing applicances, vandalism committed by an angry owner….the list goes on. As thorough as I am my crew are, even we missed a few things that ended up being a huge expense.
I’ve tried to pick up a number of them in Chicago and here it is 6 months later and I am still waiting on approvals from two banks! And these are cash sales…I can’t imagine the shit you have to deal with if you are going with a mortgage.