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?
Account Closed 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).
Account Closed 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!
Account Closedhello! 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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