Sue Fox, @Properties. Direct 773.816.1788
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Trying to make fast money by investing in Chicago real estate these days is like squeezing blood from a stone. But that isn’t stopping a few bold rehabbers from snapping up foreclosed houses, renovating them top to bottom, and popping them back on the market a few months later at double or triple the price.
I’m seeing this trend in otherwise sleepy neighborhoods like Irving Park and Albany Park, which boasts a lovely swath of vintage bungalows in its Mayfair area. Consider this renovated bungalow, located at 4839 N Springfield in Albany Park, which has 3 bedrooms (plus another one in the basement) and 3 baths. I chose this house as March’s Bungalow of the Month to call attention to the enduring phenomenon of house flipping.
The owner bought the house — a foreclosure — in July for $104,000, according to public records. It was a simple frame bungalow with white siding and black trim, being sold “as is” after spending three years on and off the market at steadily reduced prices.
Three months later, it was back on the market, totally renovated and set at nearly triple the price: $299,000. The exterior was now a soft gray with brown and white accents, the kitchen boasted dark (but plain) new cabinetry and stainless steel appliances, the floors had all been refinished and the walls repainted, the basement was finished with carpet, and the backyard now featured a new deck.
And the upgrades weren’t merely cosmetic. The house now had a new roof, HVAC system, siding and windows, electric wiring, and other improvements. There was also a new 2-car garage.
But the goal of any house flipper is to find a buyer, and in this case they have yet to do so. This bungalow has been on the market for five months now and the price has been cut twice, most recently to $259,000 last week. We will have to wait and see what the final sale price is to decide whether this was a wise investment.
Chicago is chock full of bungalows and other homes that are now languishing in foreclosure, or are trapped in a slow downward spiral as short sales. I see them in virtually every neighborhood these days, but they are especially prevalent on the South and West sides of the city. Even on the North side, you can find them in Rogers Park, Albany Park, Irving Park, Avondale, Portage Park, Jefferson Park… and the depressing list goes on.
I love bungalows, and I hate to see these historic homes abandoned and decaying. Now, this particular bungalow looks like it was stripped of whatever built-in bookshelves or hutches it once had, and it lacks a fireplace or any leaded glass windows. The new interior now has something of a generic, condo-ish feel and the finishes look like they came straight off the shelf at Home Depot. However, whoever bought and renovated this house did save it from a fate all too common these days in Chicago’s bungalow belt: utter neglect.
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