House of the Day: 234 Baltic Street
At first blush, the asking price of $1,650,000 seemed too good to be true for the four-story brick house at 234 Baltic Street. Turns out, it was. The house, which just got a nice exterior tune-up, has a rent control tenant in the owner’s duplex. Doh! So how does this look as a pure investment…
At first blush, the asking price of $1,650,000 seemed too good to be true for the four-story brick house at 234 Baltic Street. Turns out, it was. The house, which just got a nice exterior tune-up, has a rent control tenant in the owner’s duplex. Doh! So how does this look as a pure investment property? Well, the rent roll is $61,200. Figure $15,000 for taxes, insurance and maintenance and you’re left with $46,200. Let’s say you put down $350,000 to buy the place. Your $1,300,000 mortgage will run you a good $100,000 a year. Hmmm. Looks like you’ll be subsidizing your tenants to the tune of about $50,000 a year. Update: At the risk of being completely morbid, a tipster just emailed us to report that the rent control tenant is indeed an elderly man. About 80, she’s guessing.
234 Baltic Street [Smith Hanten] GMAP P*Shark
” really doesn’t make you want to advance your life”…. that’s funny…
it seems that all those rent control tenants have the goods that most of you folks wish you could get your hands on.
I hope the old coot lives to be 150 years old!
420 a month…??
mmm…what a good number.
I know for sure that a RC tenant can do anything they want. Why would they tell a judge, or the IRS, or anybody, that they are renting out a room for twice or three times what they are paying?
Let’s get rid of all Rent controlled tenants I hate them Lazy do nothing but hang out all day. It really does not make you want to advance your life does it? why should you do anything if you live in a nice hood for 300 a month. This is a bad idea and so are co ops. NYC has some really stupid laws.
Actually 5:29, I am not sure if it is legal under the rent stab laws to rent out a room in an apartment for more than the total rent of the apartment (i.e., an RS tenant cannot profit on the tenancy).
Does anyone know for sure?
5:29, it’s only legal for the guy to rent out functionally half the apartment for half the rent. That’s grounds for kicking his sorry butt out, and the sub-lettors can sue for the over-charge.
Rent control really has an effect of longevity. Tenants live forever and owners die young. The New England Journal of Medicine should do a study.
Remember the French guy who bought that investment property occupied by the 90-year-old lady? I think that’s what was being referred to in the earlier post. Karmic payback’s a bitch … she became the World’s Oldest Human! Died at about 122 and easily outlived the investor.
Did nobody here see “Duplex” either?
There is a thirty-something fellow in my building who inherited his rent-control apartment from his parents. In a very real way, this is his inheritance and perhaps the single best thing he has going for him in his life. This fellow may marry and pass it on to his children who may have limited aspirations like their father and live there for the rest of their lives as well. It is a nice 2-bedroom apartment, his rent is up to $420 a monh now, but he rents out the spare bedroom -perfectly legal- for 900 a month.