Why Rent When You Can Buy an Authentic Loft: 226 N. Clinton on the Near West Side
This 1-bedroom loft at The Clinton Street Lofts at 226 N. Clinton on the Near West Side (or is that the Fulton Market neighborhood?) has been reduced by nearly $40,000 since July 2009.
It has 15 foot timber ceilings, exposed brick, and diagonal hardwood floors.
It also has central air, a washer/dryer in the unit and parking is included.
Is the rent v. own ratio getting more realistic?
William Gonzalez at Picket Fence Realty Mt. Prospect has the listing. See the pictures here.
Unit #114: 1 bedroom, 1 bath, no square footage listed
- Sold in August 1998 for $122,500
- Sold in March 2003 for $198,000
- Originally listed in July 2009 for $259,000 (included the parking)
- Reduced
- Currently listed for $219,900 (parking included)
- Assessments are $277 a month (includes cable, doorman)
- Taxes are $2534
- Central Air
- Washer/Dryer in the unit
- Bedroom: 14×10
- Living/Dining/Kitchen: 22×16
hmmm …duno how i feel about clinton…
this isn’t a terrible deal, esp with parking included. the cheesy mirrors and outdated kitchen definitely set it back. i say if they fix up the kitchen and present it in a better manner 200k with parking is possible.
These places are TINY!
Amazing photos of the unit. Let me grab my checkbook.
I’ve been in the building many years ago when I was looking in that area. It’s a significantly better neighborhood than it was 6-8 years ago and now that they’ve converted the old power house into some office space/restaurant, there isn’t quite the eye sore that was there before. You do have the El and the Metra that run to the immediate south and 1/2 block to the east. The Green line El is probably more of a distraction.
Insulation wasn’t that great in the building between units — but what loft built around this time really is. Kitchen could use a redo and an island addition but I’m not sure how much loss of space into the living room you’d have by adding that island.
The price, to me, isn’t too bad but I can think of other areas that are better to spend 200k.
can you rent this for 1800-2K a month?
Rents for 1300-1400 a month
so it won’t cash-flow, well that’s answers the question.
looks like a high first floor.
Who buys a small 1br for 219k?
1br’s are for renting not buying!
I don’t think we can expect purchase prices to be the cost of rent on most units (good ones, at least). If they do, its a steal and you should buy it b/c this kind of environment won’t last. The problem with renting is that you are stuck with cheesy finishes. You cannot upgrade them since you don’t own the place and if the owner upgrades the rent will be more. This is why many people choose to buy. If you want a safe, decent roof over your head, you should rent. If you want something with nice finishes, to create your own space, you have to own and there is, and should be, a slight premium for owning because you have the right to make changes, update it, and get rid of tacky finishes for perpetuity. This is why owning costs slightly more and those of who expect everything to sell for what it costs to rent it are WRONG! When you buy, you get more rights…so yes it should cost more.
a local,
you opened the flood gates with that one, may god be with you……
I hear what you are saying and agree with you to a point. i will always feel that 1br and even small 2br in a average area with nothing unique or special should be rented. I own a SFH and in my mind would never buy an apartment (oops sorry condo). unless it is big, with a view, and in a pimptacular location.
the cost of owning and upkeep and worrying if it will sell (todays market extreemly bad) a 1br just so i can have UPGRADED finishes is not justified in my book.
to add if your young, and looking for a 1br, you are most likely going to move in 1-3 years. do you think in that time that person will recoup the down payment closing costs buying and selling? not including the time it takes to sell?
so if your renting a 1br and need to move you can either sub-lease, work a deal out with the slumlord, buy out your remaining lease and in that time you will have more for a down payment for not just a 2br but a three 3br SFH or if you like apartment living have enough for a 3br 3000sq ft condo with lake access 🙂
Just today the Trib reported that Rahmbo rented his home for $4,995 for a one year lease. I’m sure the home has excellent finished (he is a former ballerina) and I’m sure rent is cheaper than a comparable mortgage..
You argument isn’t even an argument, its regurgitation of kool-aid.
If I recall, Rahm’s house is surprisingly modest in a non-premier school district. I think that is a good rental rate actually.
“Rahm’s house is surprisingly modest in a non-premier school district.”
42xx N Hermitage. Double lot, 175′ deep. $556k mtg; $695k purchase in 1998.
They’re covering their expenses, but it’s certainly cheaper than buying on that block would be, esp. with $1k+/month in taxes.
Ravenswood is the attendance school, but that doesn’t really matter when you know *for sure* that you’re send your kids to hebrew school (rahm’s orthodox), which is eraltively nearby.
local,
Interesting take on what to expect out of rental units. My
local,
Interesting take on what to expect out of rental units. Certainly “tacky” and “cheesy” are in the eye of the beholder and, as a leasing agent, I’ve seen many rental units that are recently updated – and in most cases tastefully so. The truly “tacky” I tend to see in former owner’s units where the owner did everything to their own tastes – perfect for them, but not necessarily something that would appeal to a broader clientele. Owners who are updating their unit with the goal of renting it out tend to make more conservative choices. No, you might not get the Viking stove, or custom cabinet pulls, but you can still get good quality, attractive finishes.
Of course there are lots of owners who don’t update at all, or update using the cheapest possible materials – but, as you say, those units rent for less. Then again, not all owners choose to update or can afford to put in top-of-the line. You’ll find both sorts whether renting or buying, so I don’t see how ability to upgrade matters if you’re trying to decide if buying should cost less or more than renting.
Just my 2bits.
“When you buy, you get more rights…so yes it should cost more.”
I agree w/r/t SFHs and, probably, THs. But if you buy a non-unique apartment/condo (say, a 1br apartment?)? Then there should be cost parity.
Condos should be at a discount to renting. If you don’t like the finishes in a rental, rent a nicer unit with what you “need” in it. It will still be much cheaper than owning today. If you like to keep updating as many like ‘a local’ claim, it would always be cheaper just to something in your new desired style.
“can you rent this for 1800-2K a month?”
I disagree with 1.8-2K as the break even point for renting.
Basic costs:
Loan = $220K * 5% (loan rate) /12 = 917
Tax = $2350 / 12 = 196
Insurance = 220K * .5% (guess)/12 = $92
PMI = 220K * .5% (guess)/12 = $92
= $1297
Costs related to getting the loan, and buying and selling the house are a one-time payment for the entire length of the loan. If I guess length of ownership as 5 years and no increase in value.
Closing cost on purchase = 220K * 3% / 60 = 110
Sale costs = 220K * 6% = 13200 / 60 = 220
= $330 + $1297 = $1627
Tax savings, upkeep costs, lost opportunity costs, & inflation = ? I’m not a homeowner, so I can’t say I really know what I’m talking about. I’d be interested in hearing how $1.8-2K is calculated.
+ Assessments are $277 a month (includes cable, doorman)
ah, thanks. i missed the assessment. i guess that would bring costs over $1900/mo (if ownership = 5yr).
I agree that run of the mill one bedroom apartments, even with upgraded finishes, should go for rent parity. I would never buy one. But I don’t think all condos fall into this category. You can invest in larger condos much like a SFH, but your comments treat all condos alike –temporary homes that will be traded up in a year or two. Such is not the case with many large units. Many people prefer large condos to SFHs because they have amenities, door person and a view. A 3000+ sq foot downtown condo with Viking rangetop, Subzero, fabulous view of the Michigan avenue/downtown/or Lake skyline, 12 foot ceilings, large windows, exposed brick and a large 500+ sq foot terrace…is not something that can be easily rented.
For every 3000 sq ft condo downtown there are 20 or more 1000 sq ft 2/2s scattered around the city and 75% of them are priced far beyond rent parity.
Wait a sec… You want to take on ALL the responsibilities that a landlord assumes AND pay a premium to do so?
Well. By any chance would you be interested in some mortgage-backed securities I have for sale?