$1.1M in BH - "should I buy?"

Lots of people say never buy places with rent-control tenants because they're literally there forever. When they die their family member moves in. The $165 rent that guy pays doesn't even cover what it costs to maintain and run and insure his portion of the building! That's crazy.

Posted by: guest at September 17, 2007 9:21 PM

dont do rent control. unless you know he doesn't have kids or nephews or nieces or a commie out to get rich guys by pretending someone is their relative.

Posted by: guest at September 17, 2007 10:04 PM

I have a rent controlled tenant (he pays $800/month). He counts as a senior citizen under NYC housing law - barely - at age 63 - so we can't take his floor for our own use. But, he has been living in the building for more than 23 years. I bought 3 years ago. His rent is $1k under market, but I'm ok with it for the following reasons. First, he can't live forever. Second, the building financials still work with him here. Third, we really don't need the space in his apartment. Fourth, and most importantly, he is a great tenant - pays on time, takes the trash out to the curb on pick up days, sometimes shovels the snow, is quiet, is always nice and friendly - absolutely great. I feel it would be bad karma to kick him out under these circumstances.

Fortunately, he has no children. If some other relative tries to take the place after he dies, I figure they wouldn't be in the senior citizen category and I could therefore take his own apartment for my own use and could legally enforce this right in housing court.

My feeling is that rent stabilized tenants are ok under some (my) circumstances.

Consult a lawyer - as an owner/occupier, you do have the right to take the rent stabilized man's floor for your own personal use as long as your tenant (1) is not considered a senior citizen under the law (age 62) and (2) is not disabled (the other protected category).

That said, also consult your conscience - making someone leave their home of many years and perhaps become homeless (how much more than $160 can he afford?) can be a hard thing to do.

Funny - you probably live near me - I'm in the Slope near the Atlantic/Pacific station with a 4 story/3 family house and an 80s reno I can live with too. For me, the benefits of being a homeowner more than outweigh the downsides of the poor reno and the rent stabilized guy.

Remember that the 80s reno really frees you to do what you want with the space - my parlor floor is basically a modern loftlike space after my own reno, and I love it. I think that real estate values will continue to increase and my home was recently appraised for way more than I paid for it - way more than you are going to pay - life is good!

I have absolutely no regrets.

Good luck with your decision!

Posted by: guest at September 17, 2007 10:23 PM

i was in your shoes 18 months ago about same house, same price. yes, the very house you are describing. that should answer your question for you--18 months is too long, even though they took it off market to rent for a while when they couldn't find buyers last time. sellers are really nice and I wish them well. but, it's next to a big, noisy apt building with windows facing your yard. it's nice to be across from playground but with rent control and how it works, you are stuck with getting no rent for that apt for the foreseeable future--and if you try to sell, you will have trouble, too. nice place in a lot of ways, but ultimately, i am glad my husband talked me out of it. good luck with whatever you decide.

Posted by: guest at September 17, 2007 11:13 PM

buy it and fire that tenant out on his fuckin ass

Posted by: guest at September 18, 2007 12:04 AM

I'd never throw out an elderly rent control tenant, either.

But at least 10:23pm is getting $800 per month. That covers the expenses of the apartment. Maintenance and insurance. But $160 per month is far too little, OP.

I agree with 11:41pm, a lowball offer might work. But only if you can do this - a lowball offer plus $50,000 (on up to $100,000) to buy out the rent control tenant, making his signed agreement a condition of the sale of the house. Even if you get a bargain buying the house, don't buy it if you can't buy out the rent control tenant. Just look at the hard time the owners have, trying to unload the place. You'll be in their shoes one day, that or it will be your kids trying to get rid of the kid of the tenant after his kid takes over the apartment.

Posted by: guest at September 18, 2007 1:10 PM

"age 63 - ..... he can't live forever"

http://www.medicalnewstoday.com/articles/20557.php

Dont hire an architect just yet.

Posted by: guest at September 18, 2007 3:50 PM

hey there, it's 11:13 again. you're welcome. we ended up with a 3 BR apt in park slope. miss boerum hill, but we looked for a year and gave up finding the right house for the right $. we're right by the park, which makes up for the suburban vibe.

btw, the rc dude's life expectancy isn't all you have to be concerned about, counter to what our heartwarming comrades suggest. the guy could have anyone move in, live there for a year with him, and take over the space on same rc basis. i looked into it and considered it long and hard but am glad i walked. do you really want to become someone who hopes their neighbor will die? nah. i'm for affordable housing, but the old rc laws in the city are nuts.

anyhow, good luck to you.

Posted by: guest at September 18, 2007 5:04 PM

The issue of someone else inheriting the RC status of the apartment is only a significant issue if (a) you intend to keep renting it out rather than converting the house at that point to a single family, or (b) the person who inherits the occupancy rights is also 63+ or disabled.

OTOH, $160 is not a lot of scratch anyway you cut it. Plus, you are going to have to deal with DHCR regulations regarding prices for the foreseeable future, so you may need to factor that in. I would not have the courage to take this place.

Posted by: guest at September 18, 2007 5:14 PM

I'm sorry, but isn't this a no-brainer? Essentially, you'd be paying 1.1M for a 2.5br, 2ba triplex with storage in Boerum Hill. With some rental income. Run, do not walk, to your nearest mortgage broker.

Posted by: guest at September 19, 2007 10:25 AM

I would consult with a good atty as rent control in small buildings is a bit different. Also, a 55 year old man, unless disabled, is not a charity case. I bought with a 80year old woman who had lived in my bldg for 60 years. She stayed for around 5 years. I would not even take her rent, ultimately she could not make it up the steps and had to move out. That is a charity case. I have no sympathy for a healthy 55 year old gentleman. I would walk away if you can't buy him out as a condition on moving in.

Posted by: guest at September 19, 2007 3:38 PM