From $51k to $1.14 million Bucktown Chicago 3 unit

[Henry Lazerow]

Goes to show the long term compounding when you are a patient real estate investor. My client bought this property for only $51k back in the late 90s and last week we sold it for $1.14 million, yes 2700% over the original purchase price! The property had not had much work done for over 20 years and was rented out to easy going class A tenants the majority of its life. I always tell my clients to focus on the long term view rather then the day 1 return, buy things in good growing areas with easy tenants that allow you to profitably hold the property long term without much drama and capture long term growth in both rents and appreciation. Look for neighborhoods with signs of gentrification for example trendy barber shops come first, then scene late night bars, then hipster coffee shops, etc. this is how it starts and then come the two million dollar single families and high income 2-4 unit buyers who bring you huge returns. My guess for the next high appreciation neighborhoods in Chicago right now are Albany Park, Rogers Park, United Center area and the western side of Pilsen.

Sales Strategy: We used a listing strategy I have found very effective: not allowing any showings until one large group showing. By doing this we create competition among buyers and produce very strong offers for our seller clients. This will now be the highest-priced comparable non-rehabbed sale on the western half of Bucktown. Sold for $1,140,000, which was $155k over list as-is, with an appraisal waiver and multiple backup offers. 

Photo of the 3 flat, love the Miami Vice colors! 

[Caleb Brown]

Crazy!