Little Village 500k 2 unit building? Interesting trend

[Henry Lazerow]

I noticed an interesting trend, recent crazy ARV prices for Little Village 2 units especially on east side. These prices are 100% higher then 1-2 years ago when you could get a gut rehab 2 unit there for under $300,000. Few recent sales.....

2621 W 24th - 2 units - Contingent from $500k

2610 W 24th - 2 units - Sold $500k 3/17/21

I personally think these prices are over valued and would not recommend them for investors to long term hold, I forecast the rents to be under/around $3000 for the above buildings (both sold vacant). I like Brighton Park nearby though which still offers great cashflow and has a higher credit/income tenant then Little Village. Brighton park is right next to McKinley Park and Bridgeport which have blown up with luxury homes/condos now being built. I think part of the reason these east little village properties are selling so high is because they are "close to pilsen" and potentially Brighton Park will follow this same trend next. You can still find under $500k legal 4 units in Brighton Park and $200k 2 units. 

[John Warren]

@Henry Lazerow we just sold a legal three with an attic AirBnB space for 376k in Little Village on the East side of the neighborhood. The difference in rents for renovated product versus the average in the neighborhood is pretty incredible. I am cautiously optimistic about Little Village as their is a lot of development going on, but it is definitely still block by block and you need to know the neighborhood for sure.