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
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.
cobble hill one fams and decent 2 fams go for over $3 million, so i’d say this may be worth it if the house is in good condition.
I can’t do math so I leave that to you guys but I’ll say bravo to whoever thought to have the windows professionally washed before putting the place on the market. Doesn’t it look great? If only the realtor had cleaned up the crap on the stoop before taking the pictures.
so if that’s true and it really would be worth about 2.1 million, this might be a good way to look at it.
spending 50 grand a year to keep the tenant in place. 500K is 10 years of that. if you think this tenant will no longer be with us in 10 years or less, and if you think this place will still be worth at least 2.1 million in 10 years, then it’s still not a bad deal.
semi sweet, i’d say.
Extremely sweet, as a house on that Block could easily fetch $2.1.
If it hadn’t had rent control issues, it would have been a very sweet deal at $1.65
I would assume the tenant is old.
Depending on who tenant is – a long-term equity jump evenutally coming.
Current owner bought 3 years ago for $700k.
Consider it 1/2 a house of $1.5m.
$1.65 mil = “too good to be true”?
Guess you also think John Edwards got a pretty sweet deal when he paid $400 for his haircut.
can’t they (eventually) be evicted under owner-occupancy (unless they’re old, etc.)?