How's Homewood? (Chicago, Cicero, Oak Park: fit in, apartment, foreclose)

[allen2323]

Originally Posted by Humboldt1

Regardless of our differences in opinions regarding the south side you make good points.

For the areas rife with mortgage fraud there is no real gauge for how much home prices have declined since fraudulent values were done in 2006/2007. Areas like Garfield Park never were really worth $300K for 2-flats that you can now purchase for $50K. My guess is they may have been worth $100K in their heyday, but due to mortgage fraud and other inflated values, people were buying them for $200K thinking they got a good deal.

In Humboldt Park to lesser extent we are seeing the same thing. I bought a place for $360K in 2006 that was probably never worth more than $300K (looking back of course). Due to inflated appraisals and fraud, values were pushed to over $400K. I had an appraisal done in Feb 08 that showed value of $380K, but even then I knew that was not realistic.

The way I look at it, I got suckered out of $60K, but more than that the time and energy it takes to manage a property in a low-income area. I do not think I would buy such a property today even at a firesale price due to the time and effort needed to manage the tenants and the building.

I would look to buy a deal in better area but even then I would be very cautious this time around as I have learned alot.

Regardless of our conversations, I would have been much better off buying single family rental home in Homewood/Flossmor. Better renters and probably less depreciation of my investment.

Most normal investors who had a mortgage on a property that was underwater have already walked away and in my opinion should have walked away. Those who were experienced enough to walk away early on with there actual mortgage proceeds still in hand are going to be the only winners in all of this. Quitting early when you are ahead is better than playing a hand that appears to be a losing one out just to save face. And in this case just to save your credit. And if your investment didn't make you any money, just take the hit and move on. You now have the experience in a down market to actually profit the next time around. This time around investment properties are cheap enough not to even need a mortgage. All cash flow baby. With no mortgage you can grow your net worth with every monthly rent check that you collect. The government and banks have made it quite clear that there will be no financial bailout for investors. Homeowners who are underwater and are able to financially afford there homes will be receiving loan modifications that eventually will involve writing down the principal owed on the loan, or if they prefer to move a no credit blemish short sale. Investors will probably not be receiving such help on properties that they are underwater on. The market is showing no signs that it will be recovering and most experts say there will be another large price drop within the next year.

[allen2323]

September home foreclosures top 100,000 for first time | Reuters

[3divina]

Originally Posted by mommy2010

The schools aren't what they used to be and the high school isn't as blue ribbon as it once was.

Having the "Blue Ribbon School" status doesn't mean much.

[allen2323]

And, anyway to get back on subject. Homewood is a great town! The area keeps improving. So do the towns that surround it. And there are a couple of new places to eat that have opened up this year in the nearby area. My favorite is N'awlins Crab House located at the corner of volmer rd and dixie highway in the new commercial building. Great seafood, and very good portions served. Bergstein's New York Delicatessen also recently opened next door and they have excellent food and I love the reuben sandwich. The egg & I restaurant opened up directly next door also and the food there is great. There is also a new Buffalo Wild Wings Restaurant that will be opening up in homewood in a few months in the halsted shopping area on the opposite side of the street from the starbucks coffee, best buy, office max, bed bath and beyond, and fedex kinkos. I believe near the radio shack in the storefront where the office depot moved from last year. Grady's Grill, Asian harbor, and eat rice have all been nice new editions to downtown homewood's restaurant scene for a minute now. Asian harbor has excellent sushi and is one of the best dine in asian restaurants around in my opinion, with a great looking location. Grady's grill has good food, nice location, and an excellent outdoor patio.

[Humboldt1]

I owe $275K on property I bought for $360K. I make a few dollars each month. I have not really lost money except equity, though I did spend a few dollars last year clearing up an inspection and dealing with problem tenants.

The real loss is a paper loss. I haven't lost until I sell and I am cashflow positive plus I get tax benefits.

The real reason I pay on a property that is now worth $300K and maybe $250K if things get really bad in the next year or two is that I am honoring my word.

I do not want to take the hit on my credit and want to be able to buy other properties but really I want to be able to sleep at night.

I am in the better part of Humboldt Park, a block from North Avenue, so there are no 2-3 flats selling anything close to $15K where I am at. You need to go south of division or find a rehabber to get that kind of price.

A distressed property on my block just sold for $204K, so I know my property is worth more than that and mine is rented while this one does not have renters or a garage.

I was raised to honor my word, regardless of how tough things get.

I don't fault you for your opinion. I think Chuckcity (though I agree with alot of their posts) may be a little tough on this one.

My block in Humboldt Park is actually staying the same to getting slightly better. It is the southern and western parts (particularly southern) that are getting worse. This is the whole latin vs black parts of Humboldt Park. South of grand and particularly division is almost all black west of the park. You do not want to be at chicago and pulaski or division and pulaski by yourself for instance due to the high crime. Just one block north of division it really cleans up and north of grand is almost livable. I made it for 4 years wearing suits everyday without incident.

Also, around Armitage (2000N) and California (2800N) would be Logan Square. Humboldt Park does not start until 2600 W and 1800N (Bloomingdale). That is an area I would definitely consider buying into if I found the right property, given the proximity to the police station and blue line.

[3divina]

Originally Posted by Humboldt1

It is the southern and western parts (particularly southern) that are getting worse. This is the whole latin vs black parts of Humboldt Park. South of grand and particularly division is almost all black west of the park.

I didn't know Chicago had problems with latins vs. blacks.

[Humboldt1]

Latins vs black is mostly mexican vs black. Puerto Ricans are often mixed and are more likely to mix with blacks but often still have a strong disdain for blacks (mexicans too as they often think they are better as they are citizens). You don't see this as much with younger people as both mexicans and puerto ricans are often born here.

Humboldt Park is highly segregated based upon race. I can literally tell you the racial breakdown based upon what block you are in Humboldt Park. 600 n hamlin (all black). 1200 n hamlin (40 percent black. 60 percent hispanic). 1500 n hamlin (10 percent black, 90 percent hispanic). As you go further west it becomes more mexican and less puerto rican. Carniceria Jimenez at 4200 w north is mostly mexican while Cermak Produce at 2600 w north is mostly puerto rican (some white and mexican too). As a whole mexicans are replacing Puerto Ricans in Humboldt Park.

[3divina]

Originally Posted by Humboldt1

Latins vs black is mostly mexican vs black.

It usually is. In LA it's the same thing, on a larger scale.

Originally Posted by Humboldt1

As a whole mexicans are replacing Puerto Ricans in Humboldt Park.

Where are the Puerto Ricans going?

[allen2323]

Originally Posted by 3divina

It usually is. In LA it's the same thing, on a larger scale.



Where are the Puerto Ricans going?

Ok, I would say that I see alot more mexicans than I saw even 5-10 years ago living in parts of humboldt park. Not fewer puerto ricans, or blacks, just more mexicans. There isn't any kind of racial rift in the area. The immigrant mexican community usually stays to itself even in suburbs like cicero or chicago heights. They always have there side of town where there is a heavy concentration. That is just how all new immigrant cultures are. They just so happen to be here in very large numbers. The mexicans born in america usually spread out more, although like most minorty groups many still prefer to have there own communities. Puerto ricans are a multiracial people. Taino indian, some african decent, and also some degree of spanish. There culture reflects that. It's really hard to stereotype a puerto rican at all. And, I would say the same thing can be said for an african american. I think most races in humboldt park get along. They sort of get along too well for being on the west side of chicago. Definately alot of cultural mixing going on in humboldt park. The heavy puerto rican culture, hip hop culture, the puerto rican food everybody likes to eat, mexican food in the area, etc.

[Chicagoland60426]

So would you say theres more Mexicans than Ricans in HP? And how Black is HP? Some years ago wiki estimate it as high as 47%, then changed it to 23%. It appears to be most of murder victims(about 60-70%) reported are Black, despite that the community is labeled Puerto Rican. And I know there are Afro- Ricans, but for the sake of generalizing, ricans as a whole are non Black.

And about Hispanics having a disdain for Blacks in the Chicago area, its not as bad as Southern Cali. Generally speaking the Hispanic gangs here allow blacks to join, more-so if they grew up in the neighborhood. On an episode of gangland about Humboldt Park, they showed some Black MLDs. There are even black Latin kings. When Aurora police arrested 31 Latin Kings back in 06, I seen 3-4 black members among the Mexican members.