doctorqazi, Home Buyer in Chicago, IL

how would you compare 1201 s Prairie Ave with 600 N lake shore Dr I m planning to buy 1-2 BD for renting now and use few yrs from now to live?

Asked by doctorqazi, Chicago, IL Mon Aug 5, 2013

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Sam is right, if you go 50% down and 50% loan could work. Does it make sense to go all in in cash? maybe...
If you have the money and assume that the unit will appreciate 4-6% per year.

My wife and I are thinking the same thing for us when she retires in 8-12 years. Let a tenant pay the bulk of the monthly cost including the hefty HOA. Even if you are $500 under per month on a rental, that's $6k per year, if you think they go up by more that much per year you come out ahead. Plus you can depreciate the investment and offset the loss on your taxes plus property taxes and HOA and proerty improvements, As long as they allow rentals you are good. better than waiting until you are ready and find the prices 30% higher 3 years hence.

If you like my answer, thumbs up and best answer me, thanks!!!
1 vote Thank Flag Link Wed Feb 5, 2014
Forgot to say, check with your financial advisor /accountant, what i said here works in my situation and might not work in yours...
Flag Wed Feb 5, 2014
Work with a dedicated Realtor and Lender so that you have an accurate depiction of the pros and cons of each location.
0 votes Thank Flag Link Wed Aug 7, 2013
You will need a pre-qualificaiton letter to work with a Realtor. They want to know that you are able to afford the properties that they are showing to you. Remember that if you are purchasing as an investment property you will need a down payment of at least 25%. I would be happy to help you secure financing on your upcoming purchase. Joanna Weiss 773-327-3580 NMLS#230092
0 votes Thank Flag Link Tue Aug 6, 2013
email me at jmichaels@remax.net and I will send you my list in both
0 votes Thank Flag Link Tue Aug 6, 2013
Dr. Qazi,

I would definitely consider 600 N. LSD...Being so close to NMH, Lake, Navy Pier, and Shopping it's definitely a great location. Follow rule number one in real estate. Location, location, location!

Jose Hernandez
Coldwell Banker Residential
676 N. Michigan Ave.
312-788-7079
0 votes Thank Flag Link Tue Aug 6, 2013
This is tough, because they are both beautiful and offer great location as well as amenities. Prairie looks like they get better rents.

Cheapest 1 bedroom unit at LSD is $520k, assessments just under $400, and there are no 1 bedrooms at Prairie but the least expensive 2/2 is $479k/$325 assessments as of today. The only 2/2 at LSD is $650k/$596 assessments.

Let me know you'd like more information or would like to go check out any of these units.

Hope this helps!
0 votes Thank Flag Link Tue Aug 6, 2013
I do have to say that the Grant is pricey but quite nice. The floor to ceiling windows diplays an impressive view throughout the units. You would need a large down payment to make this work from an investement standpoint -
But if you can make it work until you would move in - I would say thats a great location.
Check your price Vs the rental potential - also consider avilability and competition for tenants.
A good agent will help you narrow the field and at no cost.
Good luck
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
0 votes Thank Flag Link Tue Aug 6, 2013
I am not keen on either of them if it is for an investment to be rented. The numbers just do not make that much sense depending on how much down payment you make. The numbers work better at prairie, but the units that are available are on the small side, particularly the bedrooms.
I would find other buildings to consider.
0 votes Thank Flag Link Tue Aug 6, 2013
I think 1201 S Prairie could give you more of an upside. They are about to raise the prices again there. So if you buy now, and the values continue to go up, you can make more money in the long run. Also, the rent you can get compared to the rent at 600 Lake Shore, the numbers will make more sense on the Grant. 600 N Lake Shore is an amazing building, and the view from the straight east units is amazing. Its also much more expensive. For the same price, I would bet on the Grant.

Regardless, get a good Realtor. Its free to use their services.
Web Reference: http://Americorpre.com
0 votes Thank Flag Link Mon Aug 5, 2013
Doctor Qazi.

Very distinct options - both in strong and attractive buildings. The South Loop is a bit slower in pace. 600 LSD is in the southern segment of Streeterville, an area that tends to rent strong due to proximity to Northwestern's medical and law school campuses and University of Chicago's biz school. Both are vibrant and attractive neighborhoods. My clients tend to mark Streeterville as a bit more robust and South Loop as a bit more sedentary. Here's the thing - your dollar may be longer in the South Loop. I wonder, though, if 1201 is going to implement rental caps. This has happened in multiple instances the past few years as rent-heavy buildings have had to pare down the number of rentals to facilitate mortgage-oriented transactions.

Need more insight? Want comps? Wish to benefit from my head of the pack insights? I'm here for you and will be more than happy to introduce you to all of your options.

Best regards,

T McCarey
Broker Associate
@properties
Just About $200 Million in Personally Negotiated Transactions
773.848.9241
0 votes Thank Flag Link Mon Aug 5, 2013
South loop less expensive usually than Gold Coast/Streeterville. South Loop will generate less rent than 600 N LSD for the same sized unit.

South Loop: Slower paced and big dog friendly, lots of pro baseball players for the sox choose there because it is so easy to get to the ball park.

Gold Coast/Streeterville: fast paces, noisy, close to everything you want. smaller dogs, HIGH fees to condo association to rent the units.

If you send my your email I can email you a comparative market analysis for both options in both buildings.
0 votes Thank Flag Link Mon Aug 5, 2013
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