Subscribe: The 2-flat at 6219 S Marshfield Ave in Chicago’s radically depressed West Englewood neighborhood sold just a few months ago for $17,500 after a foreclosure.
It’s been “completely rehabbed” according to the listing and is on the market for $249,900. The rehab work described in the listing included a number of items that would have required building permits. No permits for the address can be found in the city database.
The property consists of a 6-room 3-bedroom apartment and a 5-room 2-bedroom apartment. The listing describes it as a “cash flow positive building.” If you’re wondering how that can be possible in an area like this you need only look at HUD’s fair market rent schedule for Section 8 rentals: $958 a month for a 2-bedroom and $1,171 for a 3-bedrom .
HUD’s rent schedule is the same for all of metropolitan Chicago. It isn’t difficult to find housing at those rents in many environments that are far more attractive than West Englewood.
Join me for a brief look at the property and the area.
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{ 3 comments… read them below or add one }
I think they did everyone a favor…it’s probably better than anything nearby. An investor should obviously have a good inspector look over it. Like you said, they did this in a few months….if they did it with permits, how much longer do you think it would take?
While cumbersome, the permitting process is vital. An inspector isn’t going to catch most hidden problems. A flipper isn’t doing anyone any favors building without permits. That’s just a recipe for disaster. And I’m not quite sure who’s going to pay $249,900 to live there. Joe, are there many sales at that level near there?
Buster,
Many sales? No. A few sales yes, virtually all of them questionable. The market for this type of property is definitely not live-in owners. It’s typically naive investors who believe their spreadsheets have more than a notional relationship to reality.