630 W WAVELAND Ave Unit 2B just went under contract. My question is: would this be a good investment to rent out? There are just enough high end finishings to keep a tenant (appliances, WBFP, floors) but not so many that would run up the costs unnecessarily (high end cabinets, moldings, central AC). It’s in a good lakefront location in East Lakeview and a nice sticky stepping-stone apartment for a 20-something. Here are the specs:

Unit #2B: 1 bedroom, 1 bath, no square footage listed

* Sold in June 1994 for $59,000 – wow
* Sold in April 2004 for $185,500
* Originally listed in July 2009 for $205,000 (parking is $25,000 extra)
* Under contract
* Assessments of $229 a month
* Taxes of $1888
* In-unit washer/dryer
* No central air (window units)
* Living room: 18×12
* Kitchen: 12×10
* Bedroom: 13×10

An $1100/month estimated rent only gets a 5.1% going-in cap rate, assuming it closed at exactly $205k. The real killer here is the $229/month assessment – these can flatten your ROI (like having an extra 2 months of vacancy per year). The cap rate would have been 6.44% with no assessment- the difference between a potential deal and garbage.

This is why buying a whole building/2 flat makes sense. You can control assessments and expenses and you have more negotiating leverage because there are fewer buyers at those price points. So, Go big or Go home???

-Jetty

Hey cabbie, take me to Big Willie. The name just went from sad and alien (Willis Tower) to AWESOME (Big Willie). Looks like the CEO doesn’t mind the nickname either.

Chicago will never be the same.

4 bedrooms with Palatine schools – Fremd H.S.! Plus finished sub-basement gives you 4 levels of living space. Updates include: Roof 5 yrs, water heater 3 yrs, 2nd floor windows, Pella sgd, new doors, ext painted 3 yrs. Eat-in kitchen w/ newer appl & pantry, Hardwood floors under carpet. Vaulted ceiling. Brick/frame exterior. Nice fenced yard. 2 car attached garage. Birchwood Park across the street, great area!

Take A Virtual Tour! http://www.visualtour.com/shownp.asp?T=1487877