Couple of questions about Condo's in Lincoln Park / Lakeview (Chicago: short sale, rentals)

[FAReastcoast]

I recently sold some property I owned in Washington, DC and since I am now a full time Chicago resident, I have decided to purchase something in Chicago. I eventully plan on moving back to NYC (where I am originally from) in the next 2-3yrs, but would love to rent out whatever I buy.

I haven't yet hired a realtor, but have browsed the MLS listings to see what the inventory looks like, but had a few questions I hope can be answered.

I am looking for new(er) construction in Lincoln Park or Lakeview, the only Non-negotiables that I have are:
1. Must be 2bd/2bth,
2. I don't want a highrise or midrise, I am thinking of a three story walk-up at most.
3. Must have a rooftop terrace (would like a private roof deck but would settle for shared).
4. Must be turnkey, I am not interested in a fixer.

Now, I have found several places in the MLS that fit my criteria, but was wondering:
1. How far off are realestate prices from their peak of 2006-07ish?
2. There seems to be a lot of inventory on the market, so am wondering if anyone knows what the difference typically is between Asking price and Purchase Price.
3. What is the rental market like for these types of units? I don't see many on Craigslist so am not sure what market rent would look like or what the demand would be.

The Chicago area is still fairly new to me, and I am in the infancy stages of this purchase, so I just want to make sure I am armed with as much information as possible before making a decision.

Also, any tips/recomendations from people in a similar spot would be appreciated.

Thanks.

[Aleking]

if your're moving in 2 or 3 yrs, don't bother.

[FAReastcoast]

Originally Posted by Aleking

if your're moving in 2 or 3 yrs, don't bother.

The thing is, I wasn't asking if I SHOULD purchase.

[Vlajos]

Originally Posted by Aleking

if your're moving in 2 or 3 yrs, don't bother.

The OP did say they intend to rent it out when they move back to NYC.

[Kamms]

Originally Posted by FAReastcoast

I recently sold some property I owned in Washington, DC and since I am now a full time Chicago resident, I have decided to purchase something in Chicago. I eventully plan on moving back to NYC (where I am originally from) in the next 2-3yrs, but would love to rent out whatever I buy.

I haven't yet hired a realtor, but have browsed the MLS listings to see what the inventory looks like, but had a few questions I hope can be answered.

I am looking for new(er) construction in Lincoln Park or Lakeview, the only Non-negotiables that I have are:
1. Must be 2bd/2bth,
2. I don't want a highrise or midrise, I am thinking of a three story walk-up at most.
3. Must have a rooftop terrace (would like a private roof deck but would settle for shared).
4. Must be turnkey, I am not interested in a fixer.

Now, I have found several places in the MLS that fit my criteria, but was wondering:
1. How far off are realestate prices from their peak of 2006-07ish?
2. There seems to be a lot of inventory on the market, so am wondering if anyone knows what the difference typically is between Asking price and Purchase Price.
3. What is the rental market like for these types of units? I don't see many on Craigslist so am not sure what market rent would look like or what the demand would be.

The Chicago area is still fairly new to me, and I am in the infancy stages of this purchase, so I just want to make sure I am armed with as much information as possible before making a decision.

Also, any tips/recomendations from people in a similar spot would be appreciated.

Thanks.

Many properties, especially condos, are underwater. Check to make sure it is or is not a short-sale.

[long101]

Originally Posted by FAReastcoast

Now, I have found several places in the MLS that fit my criteria, but was wondering:
1. How far off are realestate prices from their peak of 2006-07ish?
2. There seems to be a lot of inventory on the market, so am wondering if anyone knows what the difference typically is between Asking price and Purchase Price.
3. What is the rental market like for these types of units? I don't see many on Craigslist so am not sure what market rent would look like or what the demand would be.

The Chicago area is still fairly new to me, and I am in the infancy stages of this purchase, so I just want to make sure I am armed with as much information as possible before making a decision.

Also, any tips/recomendations from people in a similar spot would be appreciated.

Thanks.

1. I'm not sure about LP/ Lakeview, but most areas Ive been looking at are averaging around 1999 levels.
2. This is really going to be block to block. Ive looked at a couple places that the realator said they will not move on the asking place, then other places that have a 'motivated seller' who will drop 10-15%
3. Rental market is probably strong as it has ever been since not a lot of people want to buy. I have seen rents rise a decent bit in the past couple years, but of course it depends on each NH

[Aleking]

Originally Posted by FAReastcoast

I recently sold some property I owned in Washington, DC and since I am now a full time Chicago resident, I have decided to purchase something in Chicago. I eventully plan on moving back to NYC (where I am originally from) in the next 2-3yrs, but would love to rent out whatever I buy.

I haven't yet hired a realtor, but have browsed the MLS listings to see what the inventory looks like, but had a few questions I hope can be answered.

I am looking for new(er) construction in Lincoln Park or Lakeview, the only Non-negotiables that I have are:
1. Must be 2bd/2bth,
2. I don't want a highrise or midrise, I am thinking of a three story walk-up at most.
3. Must have a rooftop terrace (would like a private roof deck but would settle for shared).
4. Must be turnkey, I am not interested in a fixer.

Now, I have found several places in the MLS that fit my criteria, but was wondering:
1. How far off are realestate prices from their peak of 2006-07ish?
2. There seems to be a lot of inventory on the market, so am wondering if anyone knows what the difference typically is between Asking price and Purchase Price.
3. What is the rental market like for these types of units? I don't see many on Craigslist so am not sure what market rent would look like or what the demand would be.

The Chicago area is still fairly new to me, and I am in the infancy stages of this purchase, so I just want to make sure I am armed with as much information as possible before making a decision.

Also, any tips/recomendations from people in a similar spot would be appreciated.

Thanks.

1. Prices are dipping towards '99 levels outside the super high end which is holding nicely
2. Depends on way too many things to answer without more details
3. A rental 2/2 in those areas with all the bells and whistles (turnkey) and nice deck would be 2,500-2,800. EDIT: worth noting that thousands of units of luxury rentals are being built and in the planning stages, you'll likely be competing with these for renters. I'd look for rents to fall in 3-4 years, especially in the upper bracket.

Originally Posted by Vlajos

The OP did say they intend to rent it out when they move back to NYC.

managing a property from NYC sounds like a ton of fun.

[FAReastcoast]

Thanks for the input guys. I am OK with a short sale if I can get the right price, even if it requires waiting for bank approval. It seems as if the chicago housing market is worse off than DC or NYC, and I see it as a great time to buy.

I am ok with managing a rental from NYC, I have owned a place in DC for the last few years without ever being a resident.

I do see rental prices falling in the next few years as the housing market (hopefully) rebounds, though I must admit, the $2,500-2,800 rental number is quite a bit lower than what I was thinking.

Obviously there is a lot more research that needs to take place on my end, but this is a start.

[Aleking]

Another note re: anticipated rental income, if you can get a place with parking, it will fetch a huge premium, especially in eastern portions of those hoods.

[FAReastcoast]

Originally Posted by Aleking

Another note re: anticipated rental income, if you can get a place with parking, it will fetch a huge premium, especially in eastern portions of those hoods.

Most places I have looked at come with 1 or 2 spots included in price.