1653 n talman (Elmhurst, Henry, Humboldt: short sale, foreclosure, rental)

[Humboldt1]

Brick 3flat with finished basement. Each unit appears to be 1200 sq ft. Price is 279K. Street is half new condos and row homes. Half mile from western blue line. I walked it last night and it appears okay. I just wish it was a little closer to the blue line.

The only negative I see (have not been inside or seen roof) is 8K in taxes. Why so much? Even if I get homeowners exemption taxes will still be 5-6K per year.

I plan on using 15K govt giveaway as part of this purchase.

What do you guys think?

[oakparkdude]

What's the estimated rental income?

[Humboldt1]

Sukwoo,

The units are 3 bedroom, 1 bath and are listed as renting for $1100/mth, so this would equate to $3300/mth rental and maybe you could rent garage for additional $200/mth, so rental income of $3500/mth plus I could live in the basement for free. If I were ever to move out, I could rent basement for $800, giving me total rent income of $4300/mth. Units are listed are being metered separately, so heat and electric are the responsibility of the tenants.

Property tax of $6K (once I get homeowner's exemption) equates to $500/mth and P&I would be around $1400/mth. It should cashflow like a king. I am just worried there has to be something structurally wrong with it for it to be going for that price.

I am also looking at 2004 brick 3 flat at 2779 W Henry, which is listed for $499K, with property taxes of $7300/year. Units are metered separately. There is no garage. Units are listed as renting for $1300/mth.

[Humboldt1]

Middle-aged Mom Thanks.

I guess the taxes are high because it sold for $620K in 12/05. Anyone else know more about this property? Is it a short sale or foreclosure? $620K to $279K is a huge reduction. Thanks.

[oakparkdude]

Originally Posted by Humboldt1

Middle-aged Mom Thanks.

I guess the taxes are high because it sold for $620K in 12/05. Anyone else know more about this property? Is it a short sale or foreclosure? $620K to $279K is a huge reduction. Thanks.

Wow! Somebody lost a lot of money on this property.

[Humboldt1]

Right, that is a huge loss. I just think there might be some mold or structural issue with the property for it to be going for only $279K.

Also, $1100 is just what is stated on the listing for rents. One is listed as owner-occupied. Maybe rents are actually much lower or the place is not rented at all. I will have to see the units and assess the condition of the property inside and out.

[Basekamp]

Good find Humboldt, this is ILLS btw..

[Johnny Northside]

Looks like the buyer put down 5% on the 2005 purchase.

There were two lis pendens in 2007, meaning its either a short sale or a bank-owned.

The previous owner had a lis pendens in 2005 around the time of the sale.

So that tells you a little about how much money they had available for upkeep.

The previous owner had purchased the property in 1989 for $60,000.

[Humboldt1]

Actually, here is the real story per middle-aged mom, a realtor with access to all this stuff:

Here's the history:

12/05 Paid $620 and financed $ 434
7/06 Listed $710
8/06 Reduced to $700
10/06 Expired
10/07 Listed $599,900
2/08 Reduced $579,900
1/09 Expired
1/09 Listed $499,900
2/09 Reduced $279,900

My best guess is that it's a short sale with hopes of a bidding war or the inside has been trashed.
Focus on the diff between the loan and the current ask price.

Listing agent is out of Elmhurst.

IF I BID ON THIS AND SOMEONE FROM THIS FORUM BIDS AGAINST ME I WILL BE P*SSED.

[Basekamp]

60k = 160k with inflation alone, does not reflect improvement in this neighborhood since then which is SIGNIFICANT.