Brownstone Expenses
I have recently started looking to purchase a brownstone. I have lived in co-ops my whole adult life and am curious as to what I need to know(responsibilities with the city, permits, inspections, etc.) about renovating and what the monthly expenses(power, water, sanitation, etc.) are to own/live in a brownstone with one rental unit. Any…
I have recently started looking to purchase a brownstone. I have lived in co-ops my whole adult life and am curious as to what I need to know(responsibilities with the city, permits, inspections, etc.) about renovating and what the monthly expenses(power, water, sanitation, etc.) are to own/live in a brownstone with one rental unit. Any help or suggestions are welcome. Thanks!
We’re figuring about $1,000 a month in expenses (taxes, PMI, heat, water, garbage, etc.) for a three-story two-family building.
Your mortgage and RE tax should be bundled into 1 monthly payment, so you’ll know that expense up front.
Generally insurance on these types of buildings (in my experience) is paid up front for 3 years. Depending on your level of coverage I’d say a rough estimate of $5k upfront for a 3 year policy.
You should be able to get all the financials of the building from the owner or RE agent. That will give you the break down of yearly operating costs.
Beyond that you as the owner are responsible for clearing your sidewalk of snow/ice, maintaining the sidewalk (you can get violations for cracked surfaces, etc), and whatever else you decide is necessary (I sweep the front a few times a week so it looks neat, mop halls once a month or so, etc, but that kind of stuff is entirely up to you).
Hope that helps..
I’m actually looking in Central Harlem, but unfortunately there is now great website like this for Harlem. I just wanted to get in contact with other brownstone owners and ask advice. I’m looking at about $1.5, 20′ wide, four story at around 6000 square feet. It is a historical area, but not a landmark area or building, so there are no issues with renovating the exterior, etc. The purchase and renovation expenses are not an issue, it’s more the everyday stuff I’m curious about and what I as a building owner am responsible for with the city.
It depends on the size and location of the building.
A $4 million 25 foot wide 5 story Brooklyn Heights brownstone with 1 rental is going to cost you a helluva lot more/in different ways than a 3 story 18 foot wide $500k Crown Heights building.
Where are you looking and what are the rough specs of the building? Simple things like being in a Landmark area complicates renovations and adds expenses.
Thanks for your response, any advice is appreciated! I would just hate to buy something and find that even though I’ve paid for this building, I can’t afford to live in it, but that doesn’t seem to be the case! Thanks again!
If you have to ask… ;).
Seriously, when I got into the house/rental gig 20+ years ago, I just fell into it with no research and little knowledge, though being an engineer with no fear of getting my hands dirty did help. While it’s worked out great for me, I can see how it might not have.
Common sense, a knowledge acceptable risk and a sense of proportion are very important, whether in selecting tenants, deciding to redo that bath sans permits or not picking fights with your neighbor about air space issues. If you’ve been reading the posts on this forum you’d see the lack of all three prevailing all too often.
I just made up a list of expenses on my 4 story 2 family. Outside the mortgage, the major ones are gas (3700), insurance (3500), electricity (1500) and taxes (4000). Then if you add in the maintenance prorates for things like roof (15k) furnace (10k) every 25 years, etc etc, I wound up with a $700/month. Roughly of course.
Can you accept that many contractors are likely to give you grief and that all renovations will go over estimate? Can you not sweat the small stuff? Are you lusting after high-end stuff or will normal good appliances suffice? Do you think like a paranoid lawyer first or do you trust people (including those dreaded “tenants”)? Can you accept that lead paint and asbestos, which are ubiquitous in any Brooklyn unrenovated houses, are not killers and can be handled by yourself mostly?
Ask yourself all these questions first. It’s not rocket science.
Correct answers: y,y,n,n,y 😉