Chicago 4 Unit Listing Price

6 Replies

Hello Everyone,

This post will be a bit long winded.  I am considering selling my 4 unit building in the Ravenswood area of Chicago.  The property is located near Ashland and Lawrence.  I am having a little bit of trouble pricing the property as it is different than mostly all the comps in the area.  

Most "traditional" Chicago 2-4 flats are constructed with the units vertically.  My building is 2 stories with 4 units spread horizontally, or sometimes called California style buildings.  What makes it more difficult is that most of the 2-3 units that have been sold in the area have the potential of being converted into single family homes that can sell at about 1million, or can be duplexed down or up to attract a buyer looking for more luxurious units.  My building consists of 3 - 2bed, 1bath units and 1 - 1 bed, 1 bath unit.  Current monthly rent totals: $5,600.00.  

I have seen 2-3 unit properties in the area priced from 620k-850k.

Any insight or suggestions are appreciated.  

your best bet here is to find a professional that knows the area, product and market you are selling in. Oh, guess what, I just so happen to have been born/raised in Lincoln Square and am currently a broker at Berkshire Hathaway for the past 14 years. Ha

All jokes aside, feel free to reach out and I’d be more than happy to assist. No obligations of course, but will definitely let you know all of the options you have on the table. Have a good one

@Elias Betondo When looking at those comps, pay attention to the CAP. It sounds like you'll lose some value based on the speculative nature of the properties that can be converted to single family homes. However, if market your property with a more attractive CAP than the neighboring properties you should be able to attract in investor.

Originally posted by @Elias Betondo :

Hello Everyone,

This post will be a bit long winded.  I am considering selling my 4 unit building in the Ravenswood area of Chicago.  The property is located near Ashland and Lawrence.  I am having a little bit of trouble pricing the property as it is different than mostly all the comps in the area.  

Most "traditional" Chicago 2-4 flats are constructed with the units vertically.  My building is 2 stories with 4 units spread horizontally, or sometimes called California style buildings.  What makes it more difficult is that most of the 2-3 units that have been sold in the area have the potential of being converted into single family homes that can sell at about 1million, or can be duplexed down or up to attract a buyer looking for more luxurious units.  My building consists of 3 - 2bed, 1bath units and 1 - 1 bed, 1 bath unit.  Current monthly rent totals: $5,600.00.  

I have seen 2-3 unit properties in the area priced from 620k-850k.

Any insight or suggestions are appreciated.  

Hey Elias, the inability to deconvert into a SFH could impact the price a little bit as it does remove part of the buyer pool as opposed to a traditional multi-family, but there are still a lot of investors out there looking for a income property that'll provide them a good return and your cash flow is great. I'm a fellow investor on the north side of the city and spend a lot of time researching properties all over this area. PM me if you'd like to discuss further!