Home Buying in 60615>Question Details

Zira, Home Buyer in Chicago, IL

What is the better buy in Hyde Park - a two storey SFH (duplex) that needs about $70K of work (list price?

Asked by Zira, Chicago, IL Sat Apr 26, 2008

around $300K), or a second story condo (huge, over 2000sqf) with a list price around $250K needing about 10-15K of work? Thanks!

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6
The big question is where did you get the numbers for renovation? Have you carefully inspected both properties? You might have thought that you'd have to update the interiors, but you need to understand what's needed on the outside as well. How's the roof? The windows? Is the circuit breaker box in the house at least 200 amps or will you have to bring in more service? How about the sewer pipes to the street and the water feed to the building? This counts for condos as well as for homes. In the condo, make sure that the association is on top of the repairs. Check out that basement. $300K is a low price for a house in Hyde Park. If you can really finish it for $70K, you might have a terrific investment. If the condo is great in a stable and financially sound building, that could also be a great deal. Just make sure that you won't be due for special assessments in the next few years.
1 vote Thank Flag Link Mon Oct 27, 2008
As the answers below touched on location is almost everything. Generally, SFHs are a better investment. If you do a gut rehab and create a great value that can be compared to oher like property in the neighborhood you will get its value. The value of a condo, though, is based on that building if no other unit in your building has the value you create by your remodel you are limited.

The next question is though how is the property to be rehabbed and financed. If you are paying cash to purchase it is of little consideration. If you are going to finance the purchase and rehab the $70,000 will for sure require special financing. The property needs to qualify and the condos require special approval that SFRs do not. Have you bee pre approved for a purchase rehab loan? There are many additonal things you need to be prepared for, like contractor approvals, code violations, project managers etc. etc.

If you need direction call me at 708.299.3244 and check out my sites.
0 votes Thank Flag Link Tue Sep 9, 2008
The location of both properties is key when deciding which one is the better buy. In general the closer you are to the lake the better, but there are many other considerations - lot size, surrounding buildings, historical districts, building style - that go into it.

If it needs a gut rehab you definitely need to know what you are doing though. It may be a good buy for someone but if you don't know what you are doing you can get in big trouble.
Web Reference: http://www.esmrealty.com
0 votes Thank Flag Link Mon Apr 28, 2008
It depends on location. I have appraised homes (and condos and coops and apartment buildings) in Hyde Park for over 25 years and location is everything. Call me and I'd be happy to discuss.
0 votes Thank Flag Link Mon Apr 28, 2008
Hi Eric - thanks for your response. The SFH is a total gut - new plumbing, electrical, windows (not roof though)! Does this change anything?
0 votes Thank Flag Link Sun Apr 27, 2008
It really depends on the work that needs to be done. If the single family house needs new windows, a new roof and a new HVAC system that's different than needing a new kitchen and baths.

In general I think single family homes over time will appreciate faster than condos in Chicago because there will always be more condos. Its unusual to find new entry level homes in the city (at least not in under 400K range) but condos are built or coverted every day. It's simple supply and demand.

If you want to talk about it more give me a call at 773-244-1110 and we can walk through what needs to be done in the two properties and I can give you a more educated opinion. Best of luck!
Web Reference: http://www.esmrealty.com
0 votes Thank Flag Link Sat Apr 26, 2008
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