$1.1M in BH - "should I buy?"
Yup, it’s another “Should I buy this brownstone?” post. But I sincerely need your opinion — and I know you love this question — so here are the details: 4-story, 3-family brick townhouse near the Atlantic-Pacific station in Boerum Hill. Top floor is rent controlled 55-year-old guy paying $160/mo. Middle floor is market 1bd paying…
Yup, it’s another “Should I buy this brownstone?” post. But I sincerely need your opinion — and I know you love this question — so here are the details:
4-story, 3-family brick townhouse near the Atlantic-Pacific station in Boerum Hill. Top floor is rent controlled 55-year-old guy paying $160/mo. Middle floor is market 1bd paying $1900. Owner’s duplex is parlor floor (2.5 bd, 1ba), garden floor (K, LR, 1ba) and partially finished rec room in basement. 20×35 bldg on 20×100 lot. No original details, livable 80s renovation. Asking: $1.1M
Do I buy it? Please advise!
I would consult with a good atty as rent control in small buildings is a bit different. Also, a 55 year old man, unless disabled, is not a charity case. I bought with a 80year old woman who had lived in my bldg for 60 years. She stayed for around 5 years. I would not even take her rent, ultimately she could not make it up the steps and had to move out. That is a charity case. I have no sympathy for a healthy 55 year old gentleman. I would walk away if you can’t buy him out as a condition on moving in.
I’m sorry, but isn’t this a no-brainer? Essentially, you’d be paying 1.1M for a 2.5br, 2ba triplex with storage in Boerum Hill. With some rental income. Run, do not walk, to your nearest mortgage broker.
The issue of someone else inheriting the RC status of the apartment is only a significant issue if (a) you intend to keep renting it out rather than converting the house at that point to a single family, or (b) the person who inherits the occupancy rights is also 63+ or disabled.
OTOH, $160 is not a lot of scratch anyway you cut it. Plus, you are going to have to deal with DHCR regulations regarding prices for the foreseeable future, so you may need to factor that in. I would not have the courage to take this place.
hey there, it’s 11:13 again. you’re welcome. we ended up with a 3 BR apt in park slope. miss boerum hill, but we looked for a year and gave up finding the right house for the right $. we’re right by the park, which makes up for the suburban vibe.
btw, the rc dude’s life expectancy isn’t all you have to be concerned about, counter to what our heartwarming comrades suggest. the guy could have anyone move in, live there for a year with him, and take over the space on same rc basis. i looked into it and considered it long and hard but am glad i walked. do you really want to become someone who hopes their neighbor will die? nah. i’m for affordable housing, but the old rc laws in the city are nuts.
anyhow, good luck to you.
this may sound a bit over the top but investigate the tenant and gauge his life expectancy.
look through his trash for info re: diet and lifestyle. Also, look for income and health insurance issues.
You can probably get enough info for an actuary to gauge his life expectancy very accurately.
If you arent willing to dig through his trash and nose into his life, this may not be for you.
“age 63 – ….. he can’t live forever”
http://www.medicalnewstoday.com/articles/20557.php
Dont hire an architect just yet.
It’s a bummer to buy a house that will never really be yours except if the renter pre-deaceses you. I would pass. Life has too mauch to offer to be stuck with some parasite for life.
Right – the RC guy is a huge liability.
But isn’t that factored into the price of the house? I’ve been trying to think of it as a 2-family in Boerum Hill for $1.1M.
Isn’t that still a good deal?
And thanks to everyone for advice. Especially 11:13! Where did you move to, btw?
I’d never throw out an elderly rent control tenant, either.
But at least 10:23pm is getting $800 per month. That covers the expenses of the apartment. Maintenance and insurance. But $160 per month is far too little, OP.
I agree with 11:41pm, a lowball offer might work. But only if you can do this – a lowball offer plus $50,000 (on up to $100,000) to buy out the rent control tenant, making his signed agreement a condition of the sale of the house. Even if you get a bargain buying the house, don’t buy it if you can’t buy out the rent control tenant. Just look at the hard time the owners have, trying to unload the place. You’ll be in their shoes one day, that or it will be your kids trying to get rid of the kid of the tenant after his kid takes over the apartment.