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March 11, 2009

House of the Day: 1182 Bushwick Avenue

How far the not-so-mighty have fallen! This four-story house at 1182 Bushwick Avenue in, you guessed it, Bushwick, was tapped as an Open House Pick last June when its asking price was $925,000. Today, the four-family can be yours for the rather reduced price of $599,000. Holy 46 percent reduction, Batman! This could be starting to look pretty interesting, given that the interior, while admittedly musty, has plenty of intact detail and the numbers look like they work. At this price, a buyer would be looking at about $2,000 a month in mortgage costs plus another $800 or so in taxes and insurance and another $500 in utilities and miscellaneous expenses. So you could, theoretically, move into one floor, rent the other three for, say, $1,000 a month and live almost for free. Is our math right?
1182 Bushwick Avenue [Century 21] GMAP P*Shark

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mopar--is this your future home?

Posted by: wasder at March 11, 2009 1:17 PM

This looks like a cool house--big apts! And this stretch of Bushwick Ave and the surrounding streets is interesting...

Posted by: tinarina at March 11, 2009 1:27 PM

Am I the only one who things Bushwick is a little far? I imagine I'd be house hunting here thinking, oh crap, let's just move to forest hills or philly or providence or .. anywhere.

Maybe I missed the "interesting" parts.

Posted by: Ringo at March 11, 2009 1:40 PM

Ringo--no, you did not miss anything. Bushwick is one of the many neighborhoods that are only for those who have drank the Brooklyn Koolaid and are under the delusion that anywhere in our fair borough is better than anywhere else and therefore worth more. If your mind is still functioning you will indeed check out other options.

Posted by: shillstoner at March 11, 2009 1:54 PM

Ringo-

If your point of reference for "far" is downtown Manhattan, Bushwick is no further than Kensington or Windsor Terrace. In fact, its closer.

But yeah, reading a real estate listing as "Prime" Bushwick is laughable. But then again, lots of people laughed when newcomers bought up Park Slope in the 70s. Bushwick is 70% shithole. This is one of the better stretches. If this doesnt sell in 6 months to a year, it'll go down to 375K. But by then we might have bigger things to worry about then RE value.

Posted by: Prodigal_Son at March 11, 2009 1:56 PM

Bushwick!!! Stand Up!!! (just a shout out)

"How far the not-so-mighty have fallen!"

How far the so-mighty are fallING. The view from the back of the line is not good. I'd get out of the line if I still had a nice chunk of equity and wanted to keep it on my balance sheet. Even still, I'd try to minimize loss. Owners who struggle to hold on - beware and good luck.

Fear-mongering or reality or both?

***Bid half off peak comps***

Posted by: Brownstones Half Off at March 11, 2009 1:57 PM

Brownstones 1/2 off:

Both.

Fear mongering is part of the plan. In Bush years, the public was pumped full of fear of terrorism. Now were being pumped full of economic fear. Keeping us afraid keeps us from taking arms and rioting in the streets.

Posted by: Prodigal_Son at March 11, 2009 2:02 PM

There's a great old dutch reformed church on Bushwick ave. Shame the road itself is a bit tatty.

Posted by: dittoburg at March 11, 2009 2:05 PM

this sounds like a story dibs knows all too well...

Posted by: cornerbodega at March 11, 2009 2:13 PM

You still in that rental apartment with your 12 relatives, cornerbodega? How's that going???? DIBS, on the other hand, is quite happy in his 2,500 sq. ft. home with all the architectural detail, a new kitchen, 2 new baths, a deck and a nice yard. And basically living there for about the price of a one bedroom rental.

If there was ever a story of sour grapes!!!!

Posted by: daveinbedstuy at March 11, 2009 2:32 PM

Wasder, this could be our new home! Although we do prefer a two family. Less to go wrong.

$925,00 was never a very realistic price even at the height of the boom. Try more like $750,000. The current price is decent, given that a three-family in good condition would go for about $620,000. The details look nice. With rents of $1,000 for a three-bedroom, that's quite a hedge against further deterioration of the rental market (three bedrooms in the area have dropped from $1600 to $1400 in the last two months).

This is not the best area of Bushwick, but it's not the worst either. It's plenty busy and there are convenient grocery stores at the Halsey J. And it's pretty. The best areas are a little further up near the Dutch Reformed Church (Myrtle Broadway J) and close to Ridgewood around the Dekalb L.

But you can pretty much assume the baths and kitchens need a re-do and there are other problems. So the price would probably have to come down and/or the buyer would need some cash.

Can you put 10 percent down on a four family? Is it subject to different NYC rental laws than a two- or three-family?

Posted by: mopar at March 11, 2009 2:45 PM

Oh, Ringo, as to Bushwick being "far out": Haven't you heard Brooklyn is the new downtown? So Bushwick is very close to it.

Seriously, we live in Bushwick on the L and we like being close to Williamsburg for the shops and restaurants (but we wouldn't want to live there).

That said, I do consider anything past Myrtle-Broadway or the Dekalb L to be far. And this is one or two stops past that, depending on which stop you prefer to use (it's between two).

The J train is very convenient to Wall Street, the Lower East Side, and South Williamsburg. In fact, this location is really ideal if you work at the Brooklyn Bridge stop. Your commute would be about 20 minutes. But it's not so close to anything else.

Posted by: mopar at March 11, 2009 2:51 PM

I'm happy Brownstoner posted something inexpensive (relatively) as HOTD. Thanks!

Posted by: mopar at March 11, 2009 2:52 PM

Hi Dibs! At the end of the day you're nothing but a GHETTO dweller. haahhahaha. Way to be move "UP" ;)

Posted by: cornerbodega at March 11, 2009 2:54 PM

mopar, i know housing code is different for 1-2 family than it is for 3 and above, but other than that i don't think there would be any differences. man this house is like twice the size of mine, sheesh!

Posted by: Jimmy Legs at March 11, 2009 2:59 PM

I don't know much about Bushwick but I have to say I wouldn't mind traveling a little further to be able to afford a nice house like this. For some of us price IS a consideration but we would still prefer not to live in a tiny condo.

Mr. B, think you could find more affordable housing like this for future HOTD's?

Posted by: TownhouseLady at March 11, 2009 2:59 PM

Define ghetto, cornerbodega. I'm sure the street that I live on is far nicer than where your Section 8 is. I guess I struck a nerve with my earlier post. Truth hurts, chump.

Posted by: daveinbedstuy at March 11, 2009 3:01 PM

Bushwick Ave is a freeway, one. Two, the banks want you to figure on 75% occupancy if you're going to rely on tenants to cover your costs. So I always base my math on that: 75% of the presumed rental income. Three, as the crow/bike flies, that is farther from lower Manhattan than Windsor Terrace. I think. And it is much farther from any park or playground. Or Greenmarket.

Three, the immediate comps in the area suggest that the earlier listing was kind of outrageous. I'm seeing sales up to $650K around there, but not over that.

Posted by: serpentor at March 11, 2009 3:15 PM

Dave --and you sound so happy, too. Most people feel the need to defend their life choices on anonymous blogs.

Posted by: Whuh at March 11, 2009 3:16 PM

Just trying to educate that dumb racist bastard, cornerbodega, Whuh. Nothing for you to worry your little head over.

Seems the two of you can never actually comment on the actual topic of a thread...just throw out your typical crap and sound so bitter. Sad, really.

Posted by: daveinbedstuy at March 11, 2009 3:21 PM

Dave, come on --how is anything you write apposite to anything but your private feud over whether you live in a ghetto? I'm not bitter; I might be buying a house. After that, I'll buy you a drink. Deal?

Posted by: Whuh at March 11, 2009 3:26 PM

Serpentor, I love the 1,2,3,3

Posted by: dittoburg at March 11, 2009 3:28 PM

mopar,there are significant differences in taxes, fire/safety and other laws for 2 units vs greater. Just do due diligence. For instance, boiler room has to be enclosed.

Looks like a good one to convert to 2 rentals +owner's duplex (put master bath where kitchen is) but then if you do it formally, the change in CO is supposedly a bitch.

Posted by: cmu at March 11, 2009 3:34 PM

My feud is with cornerbodega's lack of understanding of the basic financial aspects of homeownership given his continued uneducated commentary. Whether he thinks Stuyvesant heights is a ghetto or not is his sheer stupidity but secondary.

You can always buy me a drink though.

Posted by: daveinbedstuy at March 11, 2009 3:39 PM

"this sounds like a story dibs knows all too well..."

Laughing out loud.

***Bid half off peak comps***

Posted by: Brownstones Half Off at March 11, 2009 3:49 PM

"...a new kitchen, 2 new baths, a deck and a nice yard..."

Yeah, I was right. You did spend something on reno.

***Bid half off peak comps***

Posted by: Brownstones Half Off at March 11, 2009 3:52 PM

And got a lot more where that came from. This year's project is a makeover for the interior of my 1,500 sq. ft. garage!!!!

Keep on waiting for that house you're never gonna get!!!!

Posted by: daveinbedstuy at March 11, 2009 3:54 PM

"And got a lot more where that came from. This year's project is a makeover for the interior of my 1,500 sq. ft. garage!!!!"

Don't hurt 'em MC Hammer!

***Bid half off peak comps***

Posted by: Brownstones Half Off at March 11, 2009 3:56 PM

With a 4 family the bank will give you credit for 75% of the rental income of 3 apartments (you must live in one).

In addition, as of a month ago $850,000 was the cap for a conforming loan on a 4 family in NY. Since the sale price would be less a conforming loan with 10% down shouldn't be a problem.

If you buy as an investment all the above goes out the window and you get a different rate with different rental figures factored in.

(i recently bought a 4 fam. in Brooklyn. 10% down, conforming loan, etc)

Posted by: christopher at March 11, 2009 3:57 PM

Am I the only one that find the regular posters' signature lines AMAZINGLY irritating?!?!!?

It's makes this thing hard to read. And I'm not sure the intention of appearing like spam.

***Bid half off peak comps***

Posted by: tybur6 at March 11, 2009 4:02 PM

Not only are they irritating but they are also usually without much thought and therefore of little useful content.

Posted by: daveinbedstuy at March 11, 2009 4:09 PM

Serpentor, the vegetables at the two grocery stores at the Halsey J are good, and you can do a CSA (subscription produce box) in Bushwick, Bed Stuy, or Williamsburg/Greenpoint. There is also an organic produce corner store (a fauxdega?) at Myrtle Broadway.

cmu, that's a great idea about an owner's duplex. Kitchen next to DR/LR on ground floor, and an additional office room in back with some kind of deck/garden/french doors. Nice!

Shillstoner, you're a little behind the times on Bushwick, but that's OK, we don't want more people moving there.

Posted by: mopar at March 11, 2009 4:11 PM

Only the What would come up with some lame MC Hammer thing. Was he your idol??? Guess that didn't work out so well either.

Posted by: daveinbedstuy at March 11, 2009 4:13 PM

It sounds a little morbid but Evergreen Cemetery is actually beautiful and huge and not that far. . . As is Maria Hernandez Park.

Posted by: bunkerlabs at March 11, 2009 4:34 PM

Can't you get an HFA loan for a building like this? Isn't $599K the maximum they will finance?

Posted by: Polemicist at March 11, 2009 4:39 PM

Funny how the cheap places don't get as many comments. Are they not porny enough? Not controversial?

Posted by: mopar at March 11, 2009 5:15 PM

dittoburg, I almost apologized for it but then I remembered I had work to do.

mopar, fair enough. I'd love to see more like this.

Posted by: serpentor at March 11, 2009 6:34 PM

It's my experience that people who become independently wealthy, do so because they take the leap forward.
I'm seeing alot a posters here talking out of their asses. Most likely because they don't even have the few thousand dollars needed to get the financing together, or worse, they are some sort of losers who don't know how to manage their credit.
This house is a no brainer for anyone with a pair of balls and decent credit.
At this price you can put in four section-8 tenants at 1200 a pop and collect the monthly balance in Costa Rica.
But instead, you will have annoying posters here telling others how they are making bad investment choices, as they sit in their mommy's basement waiting for their microwave beef pattie to be brought down.

Posted by: Legion at March 11, 2009 7:11 PM

Looks like Legion does not have "a pair of balls and decent credit"...

Posted by: cornerbodega at March 11, 2009 7:40 PM

cornholio,
sure I've got the cajones, that's why I'm independently wealthy.
now run along you little turd.

Posted by: Legion at March 11, 2009 7:49 PM

Ooo, I could totally go for a microwaved beef patty right now.

Posted by: Nomi at March 11, 2009 8:22 PM

renting out apartments in bushwick is a pretty safe bet. they will increase in value over the years. it's where the young artistic set has moved and will move. young professionals will follow. families have already being buying in ridgewood.

Posted by: thewis at March 11, 2009 9:21 PM

Legion

If you think the path to riches is through Section 8 tenants, you are who you accuse others of being.

Posted by: ribant4 at March 11, 2009 10:31 PM

Even as a confirmed member of Team Bear, this is starting to look pretty interesting. The bones look good and a fair bit of original detail there as well for about $100 a sq ft.

Maybe I am not discerning enough but I would take this over a pokey 2-bed apartment in a "better" neighbourhood as long as this part of Bushwick is not in terminal decline.

"Good" neighbourhoods can't get that much better but they can get worse. Marginal neighbourhoods can go either way.

In the meantime, you'd have about five times more space to kick around in. Look at the floorplan;
http://www.brooklynproperty.com/uploads/4a8d92f3-be7b-405c-a690-e26d82354ce2.jpg

Hell, turn the garden floor into one giant kitchen and dining room, the 2nd floor into living room and library, two huge en-suite bedrooms on the top two floors, and maybe a cinema in the basement....

Posted by: the chicken at March 12, 2009 5:00 AM

@bunkerlab Maria Hernandez Park is far enough that it knocks the property down a notch in my book.

@legion ... whatever. I have no balls. I'll cop to that. The great spaghetti monster in the sky saw fit to send me down with matching chromosomes instead of testicles. I have worked really hard to save my ducats and I'm not in this to gamble or go into the slumlord business.

That said, I'll grant that I might need to be more open-minded about Bushwick, since ye olde Clinton Hill doesn't seem to be tumbling into reach. Before you start with the Clinton Hill hate, know that I happen to like where I live now, I just don't like having a landlord.

Posted by: serpentor at March 12, 2009 12:20 PM

Heh heh Chicken, if you do that, I'm coming over to your loft rave party, OK?

Posted by: mopar at March 12, 2009 5:50 PM

« Condo of the Day: 430 Clinton Avenue, #4D Streetlevel: Park Terrace Shuts South Slope Office »

March 11, 2009

House of the Day: 1182 Bushwick Avenue

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