House of the Day: 531 11th Street
The owners of 531 11th Street appear to have done quite a nice job with the three-story brick house. While not as grand as many of the houses in the North Slope, this 2,800-square-foot three-family definitely has charm, though it probably doesn’t make a lot of sense for a family buyer in this current configuration….
The owners of 531 11th Street appear to have done quite a nice job with the three-story brick house. While not as grand as many of the houses in the North Slope, this 2,800-square-foot three-family definitely has charm, though it probably doesn’t make a lot of sense for a family buyer in this current configuration. It’s also tough to make the numbers pencil out as a rental property: At the asking price of $1,895,000, the monthly mortgage alone will likely be well over $10,000 a month, meaning you’d have to rent out each floor-through unit for at least $3,500 a pop just to keep the bank happy. Then there are real estate taxes, maintenance, utilities, etc. Tough.
531 11th Street [Corcoran] GMAP P*Shark
This is one of a long row of very similar houses on that block. I have a friend who lives in a floor-through in one of them. This one is probably right opposite the fire house (there’s only one). Parking is a big problem on that and surrounding blocks, but the fire engines don’t turn on the siren until they leave the block so it’s not so bad noise-wise.
My friend’s apartment is a rental, on the parlor floor, although I’m sure the building was constructed as separate floor-through apartments. It’s a railroad flat but very nice–there’s a big room in the front, a big room in the back, and 2 smaller rooms in the middle. The nice size galley kitchen (no room for a table) is off to the side in the back, and the bathroom is behind the kitchen. She and her daughter have rearranged the use of the rooms a few times, but right now the back room is a bedroom, the middle rooms are a dining room and a bedroom, and the front room is a living room. The upper 2 floors are a duplex where the owners live. The garden level is not finished but probably could be, although it’s substantially below grade in the front. I don’t know how the upper duplex is laid out.
My friend has been there for many, many years and I think she’s paying way below market rent (less than $2k). I think her apartment could probably rent for $3k in that location.
Does anyone know what these apartment would rent for? If they are $2800 with windows in the “den” what would they go for without?
some friends rent a floor similar on 12th st and 8th which is $2800. Its on a corner so the “dens” have windows so make good bedrooms which makes it better however.
As a renter, I would never, ever pay $4000 for a one bedroom over here. I mean, people pay that for luxury places in the city, and sure, this place is very nice and pretty big, but any sensible renter who’s putting up that kind of dough would want a better layout and a a lot more interesting stuff for there money.
Why do people always assume a minimum down payment when figuring rent rolls vs. mortgage payments?
I’m not saying this house is priced right or wrong, but if you believe that the market is at a low point and are an experienced investor or landlord (and have the cash), why not put down 1 mil, take out an 800k mortgage (payments would be around 6k? havent looked it up), then rent whole thing out for total of 8k a month? You’ve got income and are poised for the next market spike.
I’m sure there are a whole host of tax consequences/benefits, too from the standpoint of an incorporated business.
These houses were designed to be used as multi-family. In fact, some of them were used as tenements (multi-family on the same floor). I think this is the same type of house that Ricky (of Ricky’s fame) renovated – it was in the Times a couple of months ago.
Thw write off from a net loss on this building could be applied to profits from other properties, or it could reduce other income you have — but if this is all you’ve got, then the loss won’t help at all.
And no 1 BR in the Novo is going to rent out for $3K/mo. Maybe $2500.
Another negative: there are two VERY ACTIVE firehouses on this block. The noise they make, at all hours of the day and night, is significant (though not unappreciated!!!!), as is the loss of parking. Living on that block looks to me very much like living IN the firehouse. I think rentals would be the only way to go: you’d be crazy to buy that for your own house…..
531 11th was most certainly built as flats – the whole cluster of houses that this is part of was, as were almost all the houses on the block of 10th st between 7th and 8th ave. The house seems over/under valued much the same way most other houses at the moment are. Time will tell, and whatever it sells for is what it’s worth to somebody at the time of sale. Money is going to have to get easier if sales are going to get easier, but eventually it will. Did anybody see the house? What condition were the rentals in?