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
the rc tenant in the building next to me pays $323 a month.
she told me herself.
prime. park slope. ladies and gents.
and she wonders why the building is collapsing on itself.
takes a little more than that to upkeep a brownstone, babe.
You can’t evict a rent controlled tenant who is over 62 years old, even for the purposes of owner occupancy:
http://www.dhcr.state.ny.us/ora/pubs/html/orafac10.htm
Kick him out and occupy it yourself. The RC parasites need to move on.
80 can be considered a youngster when it comes to rent-stabilized or control tenants. What’s with no pics on the website???
how much is he paying? 1100 a month?
there’s always the buyout option (e.g. give the tenant $250k in cash to move out), although presumably the current owner would have done that if it were a viable option.
At the risk of being completely morbid, 80 year olds have been known to last quite awhile. Years ago there was an article about an investor who bought a condo in a building being converted…it came with an 80-something life tenant. The tenant had the last laugh when he was still going strong 20 yrs later…and the investor was dead. With all due respect to senior citizens, this isn’t a great bet.
Yes, under the Rent Stabilization Code, you can refuse to renew a tenant’s lease if the owner will then use the apartment for his or her personal use and occupancy. Not sure if the fact that the tenant is elderly has an impact.
Yes, under the Rent Stabilization Code, you can refuse to renew a tenant’s lease if the owner will then use the apartment for his or her personal use and occupancy. Not sure if the fact that the tenant is elderly has an impact.