Rent Stabilized
My wife and I are considering purchasing a brownstone with three rent stabilized apartments. Any advice?
My wife and I are considering purchasing a brownstone with three rent stabilized apartments.
Any advice?
I think people are confusing rent stabilization for something else?
How much are they paying for rent? The rent does increase yearly and the maximum limit increased every 2 yrs.
It has nothing to do with the tenants being poor nor life expectancy, or the buyers wanting to be charitable
http://www.dhcr.state.ny.us/ora/pubs/html/orafac1.htm
Maria
Once your rents are collected – as they are today – how much are you paying for your living space, including taxes, heat and operating costs for the house? How much would it cost to rent something similar? How much would it cost to buy a similar size/condition apartment?
If numbers work for you, great. Only thing if possible to check – if any of these tenant are litigous. Or if file complaints to city. Then they could be real headache.
For complaints – can check NYC website.
go to buildings dept. , check for complaints and violations over the years.
Wow, if this post is for real I hope the place is cheap enough to put up rent stabilized tenants. If the purchase price is low enough that you feel that you get a nice space for yourself, it could be worth it. However, in this market, chances are you’re asking for a headache.
A) If occupying as owner and the tenants are not over 60 and not seemingly more disadvantaged than you i.e. black/brown to your white, or handicapped to your able bodied self – then take your chances in court. Still see B below regarding pricing
ELSE
B) Start studying mortality tables. From this figure out how long your tenants are expected to live, multiply by 1.25. Use this time remaining to infer out the cash value difference between their stabilized rent and market rent (assume market rent inflation of 6% and whatever the allowed increases are on your stabilized rent ). Discount this cash value to present value dollars using today’s rates. This dollar value is what you should expect to see as a price discount for this property compared against a comparable but unencumbered property ; should also be fair value of what you’ll expect to pay to get rid of the tenants.
ps: “Get rid of” used to indicate the harmless variety of course
I always wonder if a post like this can possibly be true. It sounds like such a bad idea. From what I understand rent stabilized buildings don’t often work out very well for the landlords. What is the attraction of becoming involved in this scenario? You must just be a saint who wants to help those that have trouble paying market value for their apartments. Or is that rent control?