Considering sale of Greystone 6-flat in Chicago, North Lawndale neighborhood. Wanting to gauge opinions of changing North Lawndale / East Garfield Park area and interest in building. All 2 beds /1 baths rents averaging mid $800's-900.
Walking distance to Central Park Pink line stop. Recent improvements include 2019 tuckpointing, 2018 new roof, newer water heaters and furnaces in most if not all units, laminate wood flooring, 1 year old carpet in bedrooms, tile in kitchens. 4 of the 6 units have A/C in unit, other two use window units. All units pay their own utilities except for water.
Located on one of North Lawndale's most prominent streets, intersection of 15th & S Central Park Ave, the location is one of the last affordable areas in the city in close proximity to West Loop and Douglas Park. It will continue to see great appreciation.
Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
6y
@Aaron Narod how long have you owned it and what is the cap rate of your area? A quick way to gauge cap rate is to see what others have sold around your area - make assumptions based on occupancy and rent rent to get a full gross income picture. Then, take out expense by estimating about 40% of gross income to get to an NOI. Then divide that by the sale price and you have the cap rate. Knowing this will let you know what it is worth, roughly, then you can decide if now would be a good time to unload. If you have other questions about how to calculate NOI or cap rate please let me know.
Property Manager · Chicago, IL · Member since 2016 · 69 posts · 43 votes
6y
The area is slowly starting to gain traction imo but it's still a C class area for now but so was Pilsen 5 to 10 years ago, I guess it comes down to how long your willing to wait for it for the price to keep going up