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April 27, 2009
Rental Reasearch
I feel like I've been down this road before here, or seen others roam down it, but the story is this ... I've gone and fallen for a house near the Utica station, one we can't afford without tenants.
So we're trying to get a handle on the rental market in the Stuyvesant Heights end of Bed Stuy. What is reasonable to expect for a bright one bedroom floor through? What about a 400 sq ft studio?
Can we realistically budget around $1200 for the former and $600 for the latter?
Looking on Rent-o-Matic is interesting but there's no history there. Are those boom rents?
We're in Clinton Hill now, where we've watched a rapid transition in rents around us. I know less about the rental market in Stuyvesant Heights.
Comments
Admittedly I don't know the neighborhood, but I find it hard to believe you can find a studio for $600 anywhere in NYC. My completely uneducated prediction is $1400 for a floor-through and $1000 for a studio.
Posted by: alsawo at April 27, 2009 10:40 AM
The studio is a real studio. Wee bathroom, wee kitchen, and otherwise your whole life in one room. The top floor is broken into two of them, so we could combine them to make a second floor through.
I am trying to make the case to my spouse that the rents we're banking on aren't going to be hard to collect. But I don't want to make that case if I'm actually wrong, what with our life savings being on the line and all.
Posted by: serpentor at April 27, 2009 10:46 AM
Oh, in that case I think you're totally low-balling. You'll be fine. (Wait for some more education opinions too, of course.)
Posted by: alsawo at April 27, 2009 10:50 AM
I rent my floor thru one and 1/2 bedroom in Stuy Heights for $1400 (heat included/ Electric separate). It is newly renovated and only two blocks to the A/C line. I think the range is about $1100 to $1500 depending on the condition and amenities (garden; W/D; access to train, etc)
Posted by: bedstuy11216 at April 27, 2009 10:53 AM
I rent out half of my house about 2 blocks from the Utica station (about six months ago, we took the same leap you are contemplating). We rent out a big 2BR, plus front parlor, for $1600, but it is not newly renovated by any stretch of the imagination. I think your prices are on the inexpensive side for the area, and would allow you to fill a vacancy very quickly.
Posted by: jellystew at April 27, 2009 11:05 AM
Hello there we rent our floor through 4th floor 1BR apartment for $1200 and 3rd floor 1 BR for $1400. Tenants pay own cooking gas and electricity. We are located in BedStuy just west of the historic Stuyvesant Heights area.
Studios in the area are easily at $1000 or slightly more.
Hope this is helpful.
Cheers
Posted by: feelyng at April 27, 2009 11:08 AM
Good luck serpentor. But keep your estimates conservative. Bank on a month or two vacancy each year, and some handyman cash (or DIV vacation/sick days)to touch up in between tenancies.
Posted by: slopefarm at April 27, 2009 11:25 AM
We rent two all new/ renovated floor-throughs by the Kingston-Throop stop for $1,500. I know people getting $1,600. It depends on the condition of the apartments but I think even in this market you are being very conservative w/ your numbers.
Posted by: 11216 at April 27, 2009 11:42 AM
"can't afford without tenants"
What if the tenants stop paying rent? It can take a year or more to evict them. How would you cover the mortgage and expenses if that were to happen? You don't have to respond to me but you do need to ask yourself.
***Bid half off peak comps***
Posted by: Brownstones Half Off at April 27, 2009 4:49 PM
You'll need homeowner's insurance, and most policies for a multi-family building will cover you in the event of lost rent from either a necessary repair or a tenant that you are clashing with... I learned as a tenant, when we were having landlord troubles, that the worst thing you can do - no matter how bad things get - is to stop paying rent. That is the fastest way to lose your legal leverage; so if you had a tenant not paying, chances are insurance could kick in.
Check with your insurance broker or company.
Posted by: josereyes at April 27, 2009 8:36 PM
BHO is a dumb a$$ who has no idea what he is talking about. He should get together with the what.
BHO....keep on dreaming for that sub 1 million park slope brownstone. 10 years from now you will find yourself at exactly the same place....still dreaming!
serp...if the math makes sense..then make the jump. I made the jump in the early 90s during the recession and now own several buildings in park slope mortgage free. my quality of life will not change a bit if one apt was vacant or 10 apts for that matter.
Posted by: landlord at April 27, 2009 10:24 PM
Separate Heating Units in Brownstone Apts.
I own a three family brownstone in bedstuy and would like to put separate heating units in each apt. There is a duplex (garden floor and parlor), and two floor thru apts. Currently we have steam heat from radiators. It is Oil fired. Last year we paid over $8,000 to Petro. I refuse to pay that again for an inefficient furnace. I want to convert to gas and put in three units. I am looking for advise on whether I should put three small furnaces in the basement. How difficult is it to separate the piping to the radiators? Should I put a gas furnace inside a closet in each unit? Should I put forced hot air furnaces in a closet in each unit. Lastly, how can I do this cheaply? Should I purchase furnace and hire plumber?
Eventually, I would like to convert building to Condo for when market recovers.
Any recommendations on plumbers, furnace installers in brooklyn bedstuy?
Posted by: Oldlady at April 28, 2009 12:44 AM
Oldlady,
Not to be all territorial about my thread here, but you're probably better off starting a new thread with your question, which is somewhat (substantially) different.
To hypocritically answer your question that shouldn't be here: Make sure you know what that will do to your property tax. Our landlord did the same in the 90s and is paying $11,000 in property tax on a block where the next highest is looking at ~$3000.
The Rest of Youse,
Our math is based on 75% occupancy. We've been down this road before with some recalcitrant sellers (That place is still on the market, down 20% from what we'd offered. Not that they'll ever see a dime.) and are pretty attuned to the full list of expenses.
What we're trying to get our heads around is whether we're being reasonable about what is market rent and about the immediate neighborhood overall.
We're looking a good six or seven blocks from the train, but they're short blocks. We did get mugged (nearly got mugged) on MacDonough and Stuyvesant a few years ago. We're trying to keep in mind that two different neighbors have been mugged basically in front of our house while we've lived there. So there's nothing special about Stuyvesant Heights.
Posted by: serpentor at April 28, 2009 10:58 AM
josereyes is right: it really isn't that hard to evict someone who isn't paying rent. Especially in a building that isn't rent regulated.
Posted by: serpentor at April 28, 2009 11:01 AM
hey Serpentor,
you can definitely bank on more than $600 for the studios, but I'd think hard about converting them both to a single floorthrough. Less people to deal with, even if you'd get more for two studios in the same space.
I've got two floorthroughs, and have managed to keep them fully occupied since day one (two years ago). Knock on wood. But definitely build up a reserve fund as quickly as you can.
Can't speak to the crime issue, though I know muggers don't respect historic district boundaries.
Good luck!
Posted by: Frederick Law Homestead at April 28, 2009 5:50 PM
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