You Could Have Bought This West Loop 2/2 for Just $192,000: 1228 W. Monroe
We last chattered about this 2-bedroom bank owned unit at 1228 W. Monroe in August 2011.
See our prior chatter here.
At that time, it was listed at $239,900 with the parking included. That was $81,000 under the 2006 purchase price.
The unit recently sold for just $192,000.
If you recall, the unit was just 1008 square feet. But it had 2 bedrooms and 2 full baths.
From the pictures, it appeared that the kitchen and bathrooms were intact.
The kitchen had cherry cabinets, granite counter tops and stainless steel appliances.
The unit, which was built in 2006, had central air, washer/dryer in the unit and parking included.
The listing indicated that it had to be a cash only transaction.
Did someone get a deal?
Henry Jones at Jones Realty Corporation had the listing.
Unit #402: 2 bedrooms, 2 baths, 1008 square feet
- Sold in August 2006 for $321,000
- Lis pendens foreclosure filed in November 2009
- Bank owned in April 2011
- Originally listed in June 2011 for $249,900
- Reduced
- Was listed in August 2011 at $239,900 (parking included)
- Sold in October 2011 for $192,000 (parking included)
- Assessments of $261 a month
- Taxes of $4373
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 15×11
- Bedroom #2: 13×10
no that is not a deal only because it was “cash only”
granted you can pay cash for a property and then, take out a mortgage on it, but this property specifically doesn’t seem like a good investment
me personally, i’d rather just do some passive investing with my 192k as its a lot less of a pain in the arse
Sonies is right. During the bubble the inconveniences of owning real estate were eclipsed by the appreciation. Now that thats no longer the case why not just buy oil land trusts and earn an 8% yield with far less hassle and more liquidity?
yeah and if you just have to be in real estate buy something like realty income which pays a monthly dividend (5.2% yearly yield), is a real estate investment, and they do all the work for you! And if you need to liquidate, you can have your money out in a matter of seconds since its traded on the nyse.
Then again, its not a physical asset, and you can’t live in a stock certificate, but I can certainly think of better ways to “invest”
I would have bought my place with cash had I had enough to pay in cash. I’m not good with investing. (The only stock I was able to pick and do well with was one I accidentally bought.)
Paying cash for everything is ideal for me even if it would mean a smaller place. The buyer could live here for just the cost of assessments and tax (taxes can be appealed).
I think prices for 2/2s are headed to under $200k in general (for places outside of the Gold Coast).
Prices for 2/2s are headed under $200k outside the Gold Coast? No way. That said, this is a 1008 sq ft 2/2, which is very small for that many rooms. I think this is a great deal.
Sonies, if you can get a 5.2% yield that easily, why not take out a mortgage on this place, either 15- or 30-years, and invest the cash? Mortgage rates are well below 5% right now. I don’t think there’s much risk this place will fall below its current sales price.
Um because there is tons of risk with assessments, and taxes rising faster than the yield of my investments, and the way that amoritization schedules work, its not as advantageous as you think. Like I said, its far easier to be a passive real estate investor than active. Then again, I like my money to do the work for me, instead of working for my money.
Depends on area and building. I think there is a 2/2 or two in loop proper for 200k. And much more in south loop.
Sub-$200K will soon become the new normal for generic, dumpy 2/2s both within and outside the green zone.
This sale will seem like a horrendously timed purchase in 6-18 months when better 2/2s or selling for less.
I don’t see that much risk in assessments (unless the building has issues that need to be addressed) or taxes. Let’s say both of them went up a lot and your cost of ownership jumps by 33% to $10k/year. Do you think this place rents for less than $1k/month? It’s next to Skinner Park and the neighborhood around there is generally pretty nice, full of DINKs and young families.
You could also factor in the arbitrage income from the mortgage/investment play as well.
Outside GZ 2/2s have been getting hit hard for some time. Finally the distress is working its way into the periphery of GZ. I don’t foresee LP 2/2s that aren’t a disaster getting this low. Too many transplants from michigan or palatine to buy em.
Bob, they’re on their way lower. Ok-condition 2/2 on the GZ periphery for only $229. There’s also been a few generic 2/2s in LP (60614) go for under $250.
http://www.redfin.com/IL/Chicago/522-W-Cornelia-Ave-60657/unit-2S/home/20412973
2/2s in my area, University Village, are going for under $200k now..and heading lower. I think we have a least a year left of prices going lower before they begin to stagnate for the long term.
I don’t know about these comparisons. Looking around the immediate area, I don’t see anything recently selling that low: http://www.zillow.com/homes/recently_sold/West-Loop-Gate-Chicago-IL/#/homes/recently_sold/apartment_condo_type/2-_beds/2-_baths/41.882894,-87.652984,41.878221,-87.667382_rect/16_zm/
bob, i don’t disagree, but to answer your question, the volatility on an oil trust yielding 8% is more mind-numbing than most people can handle.
people may lose money in real estate but they don’t put $200K into real estate and actually see it drop to $150K in one week (as oil trusts can/have done in the past)
(again, i agree with you…but it comes down to volatility IMHO)
old_hickory the vol can be mitigated by buying 5 oil trusts. Yeah theres the systemic risk of global oil prices but we’re nowhere near quitting oil, either here in the US or abroad
I agree with David. There is not a ton of downside risk at this price.
Here are 11 less expensive 2/2 units west of the river & east of Ashland that closed this year:
1500 W MONROE 603 6/3/2011 $148,000
1500 W MONROE 203 3/15/2011 $155,000
626 W RANDOLPH 205 7/15/2011 $160,125
933 W VAN BUREN 822 7/25/2011 $162,750
1500 W MONROE 715 1/10/2011 $168,000
215 N Aberdeen 606B 3/21/2011 $170,000
500 S CLINTON 402 8/10/2011 $178,000
106 N Aberdeen 3D 9/23/2011 $179,000
1500 W MONROE 509S 7/8/2011 $182,500
650 W WAYMAN 405C 9/28/2011 $188,000
500 S Clinton 702 8/11/2011 $190,000
I think that it might be a steal but it depends on the overall usage of the property. Consider it as a well off grandpa or parent that bought it for cash and has now set up a rent to own to the child/grand child. If so then it is a absolute steal. There is far less risk then an ordinary tenant and it is a way to transfer his wealth in a planned out strategy that benefits the heir.
How about a potential for a downsized empty nester that actually sold their larger suburban home with and is now moving to the city. That is a great deal.
jp3chicago —
My mom, a retiree who sold her suburban home a little over a year ago, is downsizing and buying something very similiar to this (slightly larger 1500 sq foot and close the the lake). These units are a great deal for someone who doesn’t need to worry about moving up to something larger in the near future. Even if she needs to go into a nursing home some day in the future, her unit is rentable and cash flow positive the start (by $500 per month), including assessements and taxes. I’m on the deed with her to effect a wealth transfer in the best taxable manner.
“slightly larger 1500 sq foot and close the the lake”
HUGE difference. Can’t be too many empty nesters who will dump a house to live in this 1000sf 2/2 in this location.
sold my 2/2 at 1260 w Washington / 601 for $352 in April
I’d agree with the fact that not all empty nesters want to move to the WL and live in 1000 sq ft. however not all of them come from 5000 sq ft in Hinsdale or Oak Brook. Some come from modest hoods with less than 2000 sq ft.
Excuse my ignorance but what is the “Green Zone”?
Thx
“Excuse my ignorance but what is the “Green Zone”?”
I should really put a “definition” up on the new website for all the new readers.
The “Green Zone” is a term coined on the site that is a reference to the trendy neighborhoods that people often want to live in. They include:
The loop
The south loop
The west loop
The Near North Side- including River North, Streeterville, Gold Coast
Lincoln Park – including Old Town
Lakeview
North Center
Lincoln Square
Andersonville
Bucktown
Wicker Park
West Town – including Ukranian Village
Have I missed any neighborhoods? Other people are better at providing a definition than I am!
“Roscoe Village”
But then again why fill the transplants in.
Jp3–
Your correct, not every empty nester has the cash for lake front property. My mom didn’t. This place is move in ready. She bought a unit that was larger and in a more desirable location but it needs work. One bath needs redone and it needs new hardwood, paint, appliances and kitchen countertop. She paid slightly more than this 205K but because she is retired she has time to find good deals and supervise the renovations.
Yes, it was a good deal for a 2/2 in a nice location with parking, a balcony, and in unit laundry