Capital gains on sale – how long do you have to reinvest proceeds?


We are selling our apt but now are having title problems with the house we are planning to buy – so the house could fall through, but we’re probably going to go through with apt sale anyway.

Question is: is there a time limit within which we have to invest capital gains into another primary residence? That is, if we don’t buy a house within 1 year, will be charged tax? Our accountant said this rule no longer exists, so we have no time limit – but I just wanted to double-check.

Also, is the maximum deduction of profit (before capital gains tax kicks in) $500K for a couple?

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French drain to waterproof cellar – how successful?


Anyone out there have success installing a French drain system? This came up in an earlier post I did about waterproofing a basement in a house we are buying but I’d love to hear from others who’ve actually used one. On my last visit to the house, the cellar was actually covered in 3 inches of water from recent rains, and the broker swore a French drain was the answer. Would love to hear more about these – how likely they are to succeed, rough cost estimates (footprint of this house is 16.5 x 40), good vendors to use, etc.

Advice greatly appreciated – thanks!

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Do brownstones usually need renovation?


We are on the verge of buying a small (16.5 x 40) brownstone in a prime location. Purchase price is pretty low relative to comps but when you factor in the work we need to do (lowest estimates have come in at 400K total) it winds up being much closer to comps, and indeed on the expensive side (esp in this uncertain market). However, we wonder if any brownstone we buy would need work anyway, so in that sense, maybe this is a good deal.

Inspector, contractor and architects I’ve spoken to all tell me that almost all brownstones (unless gut renovated within last 15-20 years) need upgrades to mechanicals, and of course, it’s hard to find a place that’s exactly right as is (in terms of configuration, kitchens/baths, etc.). But I’m curious if most people familiar with the brownstone market can answer whether indeed most brownstones would need work anyway, or are many of them basically in move-in condition?

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Renovation team – what’s most cost-effective without sacrificing quality?


We are considering purchasing a small brownstone which needs extensive renovation and wonder how to assemble the best team for the work given our tight budget. We have already brought 2 architects, a designer, and a contractor to the house, plus have talked to several others. So far, all the bids are in the range of 350-500K which is of course a large range but it seems to depend on the kind of team we use and finishes we select. While economizing with finishes seems straightforward, saving on our renovation team is more confusing. The most expensive way to go is to have the architect project manage the whole thing plus work with us to select all the finishes – this evidently will add at least 16-18% to construction costs (or $70K on 400K of construction costs). Another way to go is to have the architect do drawings only to file with DOB, then trust the contractor to execute everything. Problem is, both my husband and I have demanding jobs and small kids and are worried about our ability to really supervise the GC. A designer we worked with on a smaller job has offered to project manage for us, as well as help us select finishes – but this could add up to a lot of fees too – perhaps as much as 30K if not more. For budget reasons, I’m tempted to just trust the GC but also don’t want to be penny-wise and pound-foolish, since I saw how great the designer was when we did the small job for us – she saved us money by finding great, economical choices, negotiating discounts on products, catching GC errors, etc. – plus she definitely increased value of our apt. If we were handier or less busy, we would be better equipped to supervise GC. So one question is: are there GC’s out there who are really great and will advocate for you (as opposed to their workers, and cut corners on your job)? If so, I’d love their names! Or, do people think it’s foolish NOT to have an architect and/or designer supervise the job? If we do go with the designer, our other worry is that, even though her hourly rate is significantly less than an architect, she does not have as much experience as an architect so I’m not sure she’ll be as efficient. But others tell me that renovating these small brownstones is pretty straightforward and a fancy architect is overkill. Any advice greatly appreciated…

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house cost per square foot?


We are looking into buying a small (16.5 x 40, 3 story) brownstone in prime PS – near park, great school, etc. The purchase price is pretty low but once we factor in renovation, it might wind up being close to 1.7-1.8, or about $850-900 per square foot. Does this seem expensive for a house renovated to our taste? Note that, from the renovation quotes I’ve gotten, we can’t afford to do a fancy renovation, nor do we want to, so it will probably be simple clean finishes with not a lot of detail (leaning more towards contemporary than traditional). Looking at comps is confusing – it seems that the bigger houses wind up costing a bit less psf but the smaller ones do seem pricier psf. The fact is, we can’t afford one of the bigger houses that cost 2-3 million so 1.7-1.8 is the best we can do. But is it crazy to spend this much per square foot? I know the market is supposed to be softening, but based on the incredible demand for our 3BR/2BA prewar apt, it seems that the demand for prime properties is still as strong as ever…

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cost to gut reno 16.5 x 40 brownstone?


Does $500-600K sound high, low, or realistic to gut renovate a 16.5 x 40 3 story brownstone, including all professional fees (i.e. if we use an architect)? We originally thought work was mainly cosmetic but following inspection, it really does seem to be a gut reno. Currently used as 2 family (lower duplex with garden kitchen, and top floor rental) that’s kind of chopped up, we want to take over whole house. We thought we wanted kitchen moved to parlor but are open to keeping on garden if that’s more economical, and if the garden can be made to feel like less of the dungeon it currently feels like. We do NOT want central AC, and in general are not “fancy” types – we like simple, clean, contemporary but not super high end (i.e. we’re fine making compromises like Ikea kitchen cabinets). Also, there’s little to no detail to preserve.

Thoughts?

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basement flood/waterproofing?


We are considering buying a modest brownstone in prime Bklyn, and need the cellar to increase total sf (house is small) but the cellar shows signs of past flooding (sump pump, mold on sheetrock walls, etc.) The inspector found the walls to be dry now, but there was a lot of water in the sump pump. One theory he had was that the sump pump is basically working, and past mold is from previous floods. Also, problem might arise from fact that current owner dug out half the cellar (where sump pump is). That is, back half of cellar is about 2-3′ deeper than front half, and maybe the house hit ground water.

My question: what are the odds that this basement can be waterproofed to eventually be a usable basement? We would love to dig up foundation to raise ceiling height, and make room into usable family room type place (I’ve seen others do this) but is there any way to know before signing contract if this is possible – that is, how can we figure out ahead of time if this basement will be usable and not prone to problematic and/or chronic flooding? Our inspector said it really is a matter of water “management” but how easy/difficult it is to manage the water so that flooding does not occur?

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“fair” condition from house inspection


We are considering buying a small brownstone in prime Blyn brownstone but are a bit scared by the inspection report, which listed the house as being only in “fair” condition with lots of potential problems i.e. some asbestos on basement pipes, badly done roor, loose cornice, some foundation erosion, etc. Do these problems sound typical? Or is a “fair” condition house (as opposed to “fairly good” or “good”) more the norm? The house is priced OK for this market, but of course is still a ton of money so we want to be sure it’s a good investment…

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16.5 x 40′ brownstone layout?


We’re considering buying a brownstone in prime brownstone Brooklyn but it’s only 16.5 x 40 (3 stories, 2 family) and we’re trying to figure out if it’s worth it in terms of being a real improvement in space from our current living situation. Can these be laid out to feel spacious? Current house owner lives in lower duplex (kitchen on garden, bedrooms on parlor) with top floor rental, but we’d have to reconfigure since the house is really badly done, and we much prefer parlor level kitchen and bedrooms on top floor. But, we’re worried that the expense of the house including renovation may not be worth it for the final space we get.

We now own a 3BR/2BA prewar apt (w/outdoor space/storage/W/D and lots of sun) that is about 1200 sf and really efficiently laid out, with decent sized bedrooms. Our main complaint is that the common space feels smaller than we’d like, and ideally, we’d like another room. Problem is, the brownstone is not a clear improvement. For one thing, the bedrooms on top floor will likely be smaller (can’t really get 3 bedrooms, right? only 2.5, with the half bedroom a small study) and not clear if there will be as much storage space. The parlor level would probably only feel more spacious if we knocked down all the walls, but would this look weird?

We probably can’t afford to do anything with garden floor for now so will either rent it or use it kind of as is (perhaps just rip out kitchen and paint, put down inexpensive floors), but in the future, we’d want a bedroom down there.

Any tips on how to lay out this size brownstone, and whether it can really feel spacious?

Thanks!

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Contractor price per square foot?


We are considering buying a modest brownstone – 16.5 x 40′, 3 stories (currently used as 2 family with top floor rental). What is a “safe” cost per sq ft to budget for renovation? It seems to be all over the map – I’ve been quoted 200/psf up to 500/psf. We are not “fancy” types – we have a tight budget and like a simple, clean look (a la Dwell magazine) and are not dealing with restoring tons of old detail, since the house does not have much. So far, a couple of architects have said we could squeak by and renovate 2 floors for 200-250K, but I have trouble meshing that to contractor prices I’ve been given.

Re: work we want to do – The house is in decent shape but we do want to do pretty major work including: flipping configuration so that we could first live on upper duplex (and hopefully eventually afford to take over garden) though this means putting kitchen on parlor; nearly gutting parlor floor (taking down a bunch of walls, creating kitchen & possibly a powder room and closet); top floor some reconfiguration but not as extreme – mainly ripping out kitchen to make bedroom larger (currently that room is a LR) and possibly add closet space, renovate bath and add add’l closet space, and maybe change door entry point to small study in front half of room (currently opens from adjacent BR, we want it to open from hall).

We are about to go to contract but are dying to get more of a sense of the true cost of renovation – can it done be rather thriftily? To me, 200-250K seems like a hell of a lot of money!

Thanks -

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