I just got a property under contract in Glenwood IL. It's a suburb in the southside of Chicago. I was wondering if anyone is familiar with this area?
My comps show an ARV of 140-150,000 for similiar properties around the area. However, I wasn't able to find many rehabbed properties and I didn't like that most properties stayed on the market for 3-4+ months.
If anyone is familiar with this market, please let me know.
Yes, I am familiar with the area. It is surrounded by bad and nice areas. Usually taxes are high because of the big stores and malls left the area. I would guesstimate those ARV's are a little on the high side, but worth checking out. Are you looking to flip or rent or wholesale?
@Daniel M. , I lived south of there for a while. Glenwood can be nice, but like @Derrick Rowe said, there are pockets. Did you put eyeballs on the property? Drive the neighborhood in a spiral to make sure you aren't in one of those undesirable pockets.
Those ARVs sound a tad high for the area. Where did you get them? Check out average DOM, too. Houses there can sit for a long time. If you're flipping, make sure there are high margins, or this property may not be worth it.
@Derrick Rowe Thanks for your input. I'm looking to flip it and perhaps renting it out as an exit strategy if it doesn't sell after 4 months on the market.
@Mindy Jensen I'm not very familiar with the area as I live in the city. I stopped by the property once and it the area looked nice. The average DOM is a concern for me, the properties can last as long as 6 months. However, I haven't been able to find that many comps. Most of the comps are old houses that need updates.
This is the property:
831-W-Arquilla-Dr-60425 it's a 3 & 2 and a bit over 1600 SQ FT.
https://www.redfin.com/IL/Glenwood/831-W-Arquilla-...I signed the contract for $58,000. The property needs updating (kitchen & baths), a new roof, HVAC, painting, refinish floors and re-do the basement. I'm estimating somewhere around 50,000 to rehab it. Using the "70 % rule" I'd be off by 10,000 (Assuming a 140,000 re-sale price).
@Daniel M. Hi Daniel, did you have the property under contract already? It seems like it's still active on the MLS. The ones that are updated with 3 bedrooms and 2 bathrooms can go up to $140000, but they stay on the market for a while. If you can put less to rehab, and list the property for $120000-$130000, you might get more bidding and buyers coming to see the property. Hope this helps.
@May Pardo I just had my offer accepted on Friday. I'm considering going back to the bank after the inspection period and ask them to reduce the price by at leasr 3,000. I might decide to not finish the basement and just tear it down. As you said, properties that have sold for 140K+, have stayed on the market for a while and I'm not sure if I feel too comfortable with that.
Thanks for your insight!
@Daniel M. hello! I was wondering how your project is going because I am looking into investing in the Glenwood area. Were you able to close on the house and get started rehabbing? Also were you able to find a contractor out this way or are you doing the work yourself? Thanks so much!
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