Renting Out Entire Brownstone?
I need advice or experience from owners on the ease of renting an entire brownstone. I am hoping to buy a brownstone in the Brooklyn Heights, Cobble Hill, Boerum Hill area to eventually live in. However, I currently have a very affordable, rent stabilized apartment that we have not outgrown, and I do not want…
I need advice or experience from owners on the ease of renting an entire brownstone. I am hoping to buy a brownstone in the Brooklyn Heights, Cobble Hill, Boerum Hill area to eventually live in. However, I currently have a very affordable, rent stabilized apartment that we have not outgrown, and I do not want to give up. My hope is to purchase a brownstone and rent it for 2-5 years before moving in myself. Clearly there are a lot of garden floor units for rent, but how successful can one be at renting an entire brownstone in these areas, or at least an upper triplex?
I agree with you Ironballs. Gov Patterson has a rs apt, so does rep Rangel, if they haven’t made 175k for two cons years and it’s their primary residence, then good for them and the same for the poster. However, if this guy is earning over the legal limit (after all, you can’t buy a townhouse in dt Brooklyn with out making $$) and still plan to hold on to his R/S apt, then shame on him.
“I see no problem with your continuing to take advantage of your great rental deal. As you state, it’s the idiotic laws that are the problem, not the fact that you happen to have been lucky enough to score a deal back in the day.”
So if it’s legal it makes it morally o.k.?
Taking advantage of a broken system is still taking advantage and pretty heinous.
But hey, that’s just me.
You’ll “make” hundreds of thousands of dollars (by paying a much lower price) if you wait a few more years for the market to keep correcting downwards.
The fact that there’s no way you can even come close to covering your costs by renting a newly purchased market rate townhouse in Brooklyn is the clearest evidence in the world that the market still has a long way to fall.
As a landlord who hates rent stabilization, I see no problem with your continuing to take advantage of your great rental deal. As you state, it’s the idiotic laws that are the problem, not the fact that you happen to have been lucky enough to score a deal back in the day.
Rent stabilization should obviously only be allowed for folks of low and moderate incomes (not to mention it should be subsidized by the government — not private landlords), but changing the rules to the detriment of tens of thousands of high income “voters” like yourself is something that will never happen in corrupt New York City.
How would a local Democrat get elected if he didn’t promise to take something from one person and give it to another?
You can afford to buy a Townhouse apt in Downtown Brooklyn but you are going to hold on to your “affordable” rent stabilized apt. Maybe you can afford to pay someone to give you advice.
Years ago, my mother had great success renting her extremely beloved house in California to an academic family from Japan while she temporarily relocated to Texas for her husband’s job. They left the place spotless and in perfect condition. Though I suppose the Japanese professors are few and far between in Brooklyn.
Cara, love your blog!
Thanks, Brooklyn Chicken, for the shout-out. As others have pointed out, whether it’s a good idea to buy and hold a townhouse at this time all depends on what it costs, mortgage terms, condition of house, etc. – but I’m here to tell you it’s not as easy as in the past to find tenants for a 5BR, 3 bath brownstone. Not easy, but possible! Six real estate brokers couldn’t do it, but a post on my own blog did: I’ve just rented my Cobble Hill house to a European family with FIVE kids. They’re coming to New York for the dad’s work, to learn English, and have a ‘family adventure.’ (They had searched on ‘townhouse for rent by owner’ and came to my blog)
Still, I sweated for a while and lost about a month and a half’s rent before these folks came along. Also, I lowered the rent – am getting the same as I got 3 years ago. My previous long-term tenants were also a European family, for what it’s worth.
Agree with all sentiments above. It makes absolutely no sense to buy right now if you just want to rent it out for a few more years. Whatever house you want to buy now will be cheaper by some unknown (and much argued about!) percentage and the rent you could get for a one family house and likely a two family house would not equal the mortgage payment.
I sincerely doubt that anyone looking to buy a brownstone would qualify for the $8K first time buyer’s credit — for a single person it starts to decrease at $75K per year,down to 0 at $95K. It’s $150K – $170K for married filing jointly.
“I was simply hoping to take advantage of the tax breaks during that time.”
The tax breaks would pale in comparison to the certain loss. I hope you weren’t lured in by that laughable $8K credit. Do you have the math right in front of you?
***Bid half off peak comps***