New Owner
My family and I have inherited a brownstone here in Brooklyn and haven’t the slightest clue as to what to do with the property. I don’t want to sell and would rather renovate. We have four apartments that are in bad shape along with a basement that has recently flooded. I’m looking for any type…
My family and I have inherited a brownstone here in Brooklyn and haven’t the slightest clue as to what to do with the property. I don’t want to sell and would rather renovate. We have four apartments that are in bad shape along with a basement that has recently flooded. I’m looking for any type of insight to help me persuade my family that this Brownstone is still a family treasure.
Good luck with everything, JVN.
All comments above are good one’s for you.
Devil is in the details, I’m afraid. Getting someone qualified to assess potential vs financial/time/emotional exposures would help you make the best decision for you. I would be willing to help you do this if you like–no strings attached–but I would have to tour the whole building with someone who can describe personal/economic goals. answer here if interested.
JVN: My condolences for your loss. From personal experience, the first three months following the death of a family member are filled with demands that can’t be ignored, and also just about the worst possible timing for making major decisions. If you and your family have the opportunity to take a little time before reaching a decision to sell or renovate, I encourage you to take that time. There are many resources available that can help you explore whether renovating the property could be a wise and affordable decision, or whether better to sell.
For in-person homeowner counselling, try NHS: http://bit.ly/bCrnzK
For homeowner loan information, also check out HPD: http://bit.ly/9wTZTp
On a separate note, if you are the person with primary responsibility for handling the affairs of your loved one, you might also find the following checklist and sublinks a useful reference for the many things that need attending to: http://bit.ly/d2GI3K
THANX. YOU ALL A VERY HELPFUL. UNFORTUNETLY I DO NOT HAVE THE FINANCES TO TACKLE THIS PROJECT ALONE. ALOT OF PEOPLE WHO ARE NOT OWNERS RECOMMEND THAT I KEEP THE PROPERTY BUT I REALLY WANTED ADVICE FROM PEOPLE WITH THE EXPERIENCE. THANX AGAIN.
Another thing. Chances are good that your brownstone will increase in value. And the rents will probably go up. That’s because right now brownstone areas are more sought after than others in the city.
Also, I forgot to say: Congratulations!!!!!
If you want to persuade your family that a brownstone is a treasure, tell them about the many house tours such as in Bed Stuy and Crown Heights. Show them the many books about brownstone history and repair, such as “Bricks and Brownstones” and “Renovating Old Houses” by George Nash. Show them the Web site of Gavin Young Maloney. Heck, show them this Web site.
Brownstones were built for the rich and are very valuable and highly sought after today. Look at what they trade for in Brooklyn Heights, Park Slope, Bed Stuy, Crown Heights, and Fort Greene. The ones with historic detail intact and upgraded mechanicals are the most valuable. The ones dripping with detail range from $800,000 to $4 million depending on location.
Brooklyn is currently fashionable and booming because of its historic buildings. People come from all over the world to visit Brooklyn now.
Also, if you keep it, you need to be cautious about who you have do the work and how you structure the contracts and everything so you don’t get ripped off. And it’s a little bit of a challenge to find people who don’t charge a lot but will not ruin the precious brownstone details.
We are currently renovating, and I don’t consider it stressful. I consider it a pleasure. The stressful part is the finances.
Don’t borrow and don’t spend more than you can afford.
But in my opinion, you can’t really take on a house responsibly without some savings, in my opinion.
You absolutely must have homeowners insurance, for starters. That’s generally about $200 a month.
You also need some kind of savings for emergencies. How much depends on the condition of the house. For example, might the sewer main to the street or the roof go or might a pipe burst? The former could cost $10,000 to fix, one layer of roof is $3,000 or much more if you have to remove and replace the whole thing, a pipe bursting could cost anywhere from $400 to $3,000 to fix depending on what the issue and location is and how much plaster damage there is, etc., etc., etc.
The fact that there is rental income goes a long way to solving some of these problems.
Many people figure on $100 a month for things to go wrong, and they also put aside $200 a month for future emergencies, just like in a coop.
This is a very interesting question.
In what neighborhood is the brownstone located?
Will you live in it?
I believe your options are to sell the property and divide the money equally between those who have inherited it OR one of you can buy out the others and then the property is yours. You consult a lawyer who does the paperwork.
When my mother and brother both inherited shares of an apartment as well as money, she used the money to “buy out” his share of the apartment, and now owns the apartment. She says renting out the apartment is a big headache but she now has a very steady and impressive income. And lately she has found some really good renters, so it’s no longer a problem.
(She has more issues than most with renters, because she has unusual religious requirements and is not businesslike in her approach to improvements and who she rents to.) It is a business, and there will be some time and money required to run it.
My mom’s apartment is located in a very expensive area, where even the smallest property sells for a lot. Personally, I think it’s a fantastic investment — she now has significant income every month, and if anything were to happen, she could always sell the apartment.
Re the condition of the property you have inherited, the situation might not be as serious or expensive to fix as you think. One thing you might want to have done is have a certified engineer inspector (make sure he is both) check out the condition of the property and issue you a report. It costs about $800. Keep in mind the reports are quite alarmist — they will mention every possible problem even if it’s not really a problem. You should be present at the inspection and ask a lot of questions so you can find out what really needs to be fixed. They will have a tendency to tell you any plumbing over 10 years old needs to be replaced completely — and that is not true. If it ain’t broke, don’t fix it.
Or you could invite a plumber over to see what the problem with the basement is, and a contractor to see about the rest of the stuff.
We recently had flooding in the basement, and it was just an $80 charge to get a sewer guy to clean out a little clog. Or you might have a hole in a pipe and that section of pipe will need to be replaced or the pinhole closed with plumber’s cement, depending. That could cost maybe $400 or so.
A kitchen could conceivably be redone for very little — just new appliances and a $200 solid wood table-island from Ikea. Or paint. Etc. Etc. Or you could spend $40,000 if you want. $15,000 is probably more average and could include new plumbing. It really depends. Maybe you should post a photo of a specific room and ask for our opinions about how it could be renovated, and how much it would cost.