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Who's the last owner occupied condo in Chicago ?

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istock_000000558971xsmall_415_01There’s a new trend going on in Chicago’s new construction real estate market and it isn't one that is all that inviting to many buyers investing in such developments. By now, you've probably read or heard about some of the controversy regarding developer bankruptcy and large-scale buyouts of the remaining units currently for sale in high profile projects. Some of these horror stories include a non-for-profit group buying and converting 19 unsold units at 659 West Randolph into housing for recovering mental health patients, while others are as simple as renting out the remaining condominiums to qualified tenants on an individual basis like at the Terrazio development at 1935 S. Wabash. After the developer of 303 W. Ohio in River North failed to pay off a past due loan, it appears that residents at this building can also expect similar action and the empty units will likely be sold off in bulk.
With the real estate market still in a downward spiral and struggling projects turning towards the leasing market to stay afloat, it almost seems inevitable that the very new construction building you currently reside at may actually follow suit to this unfortunate rental reality. So given that I tend to be a glass half-full kind of guy and always try to stay positive, I thought this may be the perfect time to devise a small list of pros to having the neighboring condos in your building be rented out to less than ideal tenants. After giving it some serious thought, this is what I came up with:

1. If your new neighbor is loud, annoying, unattractive, or just plain weird, there’s now a realistic chance that he or she may be out in 6 months to a year—or even less.
2. Being surrounded by renters may actually take you back to the days when you were renting and make you feel younger! Who wouldn't like that?!?
3. If your new neighbor happens to be a recovering mental health patient, access to volume or a psychiatrist just got A LOT closer…
4. Putting your condo on the rental market and using it as an investment property just got a lot easier. Investors buying units in bulk certainly don’t have any standards so why should you?
5.More rentals mean more wear and tear on the building, right? So if you’re the one person who hates the carpet in the hallways, don’t worry. A large portion of those expensive assessment fees will likely go towards replacing the carpet every other year and similar upkeep expenses due to the increased traffic throughout the building.
6. Finding an open machine won’t REALLY be that difficult. Of course those 3 roommates and their 3 friends they invited over who occupy the 3 bedroom unit next door will be courteous while in the fitness center…
7. The banks love to give loans in condo buildings that are full of rentals
8. Finally, should you decide to put your condo on the market, you can now provide this list to attract and entice potential buyers—which WILL work. Trust me.

For more than 25 years, Ted Guarnero has been a Top producer in Chicago's residential real estate market, developing a loyal following of home buyers and sellers, developers, and community leaders. If you’re serious about real estate, Call Ted Guarnero at Baird and Warner 312-810-6693

www.seeChicagorealestate.com

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Ginger Menne

Awesome post Ted. A great perspective for buyers who compare prices of established buildings and new construction.

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