Which is the best/safe area to invest Bank owned property in the city of Chicago? (Lincoln: short sale)

[youngtina]

Hello everyone,
I was some bank owned properties are well priced in the city of Chicago. Could someone tell me where is the best area to invest and which areas should be avoided?

Thanks!

Tina

[rockinrolla]

That's a handy website, dude.

[Humboldt1]

Bank-owned properties are all over Chicago. I am currently looking at condo foreclosures in the Loop and West Loop and Gold Coast. These are units that went for $500K 2-3 years ago and are now on the market for $250-300K.

It depends what you are looking for. I would steer clear of areas that have been devastated by foreclosures. Essentially, any area that was adversely affected by the 1968 race riots following the assasination of MLK, Jr is to be avoided. This rules out much of the west side, including Garfield Park, Austin, and North Lawndale.

Stick to more gentrified areas. If you must be an urban pioneer, stick to more established areas like Logan Square as opposed to say Humboldt Park, which is really bad as you approach Garfield Park.

There may be less upside with some more gentrified areas such as Lakeview, Lincoln Park, etc, but there is also less risk to the downside.

Also, be sure you get a good inspector before buying, especially older properties. The last thing you want is the city on your back. Good luck in your search.

[oakparkdude]

If you're making buying decisions based on advice from anonymous city-data forums, my advice is don't.

[softdev]

Originally Posted by Humboldt1

Bank-owned properties are all over Chicago. I am currently looking at condo foreclosures in the Loop and West Loop and Gold Coast. These are units that went for $500K 2-3 years ago and are now on the market for $250-300K.

There are no units in the Gold Coast that used to go for $500k and will now sell for $250k-$300k. There hasn't even been close to a 40-50% drop in prices. I should know, I've been running the buy vs. rent math on new properties every month to see if it even remotely makes sense (it doesn't). If you see a short sale proclaiming such, the bid will never be accepted by the bank.

I don't know the other areas, but I would doubt that kind of depreciation anywhere in Chicago. In looking at the Case-Shiller data, the run-up and now fall in prices hasn't been nearly as extreme as the coasts.

[PokerPlayer1]

Originally Posted by Gioobag

I'm a big fan of www.cribchatter.com, you might start learning things about the market there.

That site FTW!

Thanks.

[youngtina]

Thank! I will take a look.
Tina

[youngtina]

I just start to look at listing. No guys for auction yet. Tina

[youngtina]

I know short sale has long waiting period. Most banks don't care.

[JoeyPants]

Originally Posted by sukwoo

If you're making buying decisions based on advice from anonymous city-data forums, my advice is don't.

If you are going to take advice from someone on the internet as to how to invest 300K, well I know of a Nigerian Prince who needs to stash 3 million dollars, are you interested?