cooperative purchase
I’d like to own a floor of an historic rowhouse, but I don’t want to buy someone else’s renovations. At the same time, my pockets aren’t deep enough to buy and rehab a building on my own. How difficult is it to cooperatively buy a rowhouse? Is there a way to find like-minded people who might be interested in cooperatively buying and restoring a fixer-upper multi-family with plenty of original detail?
krohe
in Co-Op Related 13 years and 1 month ago
7
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7 replies
callalily | 13 years and 1 month ago
What is your budget? You can buy a three-story two family renovated house in move-in condition with some details in Bed Stuy for $500,000 with 3.5 percent down via an FHA loan. I’m assuming FHA allows tenancies in common, but I don’t know. Alternatively, you can buy a coop in a teens walkup in Bushwick or Jackson Heights for about $300,000 or so. I have seen the rare condo in Williamsburg for about $300,000\. If you are not an experienced contractor or do not have $100,000 cash on hand, I would caution against buying a “fixer upper.” It’s always the mechanicals and structure that need fixing, never the wallpaper and the shag carpet. If you are truly serious about buying a place and your budget is more like $80,000, look into a studio in Queens or a one bedroom in the Bronx.
brokelin | 13 years and 1 month ago
there are two kinds of brownstone coops. I saw many of each type when I was looking. some were actually renovated by a sponsor and had detail removed, etc., to make modern but ugly kitchens, baths, laundry closets when the buildings were cooped. then there are those that were functioning as rentals, and the apartments were sold pretty much as is when the buildings were cooped, to be renovated, eventually, often simply and minimally, by subsequent owners. these apartments tend to have more detail, as they were not renovated all at once by a sponsor. and yes, that detail is lovely and people line up to get it. you have to accept how the market values stuff and live with that. still, I think it would be cheaper and easier to look for an apartment to renovate than to take on a house. but if you are truly approaching retirement age, I would look for an apartment in an elevator building. You can sometimes get these from a sponsor unrenovated if you identify buildings you want, or you used to be able to. You see the ones they renovate for sale all the time after the stabilized or controlled tenants move out or die. Not quite the same as a brownstone floor, though some are quite charming in their own style, but will work better for physical requirements in retirement. I loved my old brownstone coop floorthrough, but now my back loves living in my first elevator building even more.
krohe | 13 years and 1 month ago
i’ve been an avid reader of real estate ads for years, and just never see unrenovated rowhouse co-ops. they’re either renovated to the point where very little original detail is preserved, or it’s preserved and the price far exceeds my budget. would just love a place with the original floors and a simple bathroom and kitchen. seems easy when i see how inexpensive some of the homes are in the bed-stuy/crown heights/bushwick area. but maybe i’m dreaming about how “simple”, or affordable, it really is.
brokelin | 13 years and 1 month ago
You say you can’t renovate a townhouse…what is stopping you from buying an unrenovated coop or condo that is a brownstone floor and renovating it yourself…they do exist, you just have to look for the listings. they aren not likely to be in the nytimes. many that are were renovated cheaply in the eighties and nineties and are ready for another one. they look worn, and do not sell for the price of a newer, higher end reno. It is not nearly as expensive to renovate an apartment as it is to take on a whole wreck of a building anyway, as some upkeep and maintenance will have been done ongoing by the owners who have lived in the building over the years.
brokelin | 13 years and 1 month ago
finding people to do this with is hard, and even if you find them it may end badly. why not buy an unrenovated but liveable place to live in while saving for an eventual renovation…or do what i did, keep looking until you a find simple, cheap renovation you do not hate, which you can either live with indefinately or later renovate. If you buy this in a place where prices may go up eventually as gentrification spreads, it may enable you to sell later and renovate a new place to your specifications. Or buy a multifamily home, where the rent from the tenants is taken into account by your lender, and renovate you floor when you can, and the other apartments when you want to.
krohe | 13 years and 1 month ago
thank you, bparc! glad to hear others have done it. so far none of my friends are interested in the challenge or hassle. but i’ll keep asking.
bparc | 13 years and 1 month ago
My business partner and I have bought two houses that way – in both cases we couldn’t have afforded to do it alone. Its been great having a partner for the process – both financially and in terms of sharing the various stresses of ownership. I’d suggest you start by asking within your circle of friends/acquaintances for someone who might be interested since you really need someone you can trust and enjoy working with. Though if you need to turn to a wider audience its certainly an option: but get a good contract in place before you start. I hear the same desire from people all the time so I have no doubt you’ll find people who want to do this. I’d also advise you to talk to a good mortgage broker about potential complications from the multiple buyers. If you form an LLC to buy the property you’ll need a commercial mortgage which will change the requirements for downpayment as well as the interest rate. Finally, I’d suggest you define very clear boundaries about what parts are to require communal input (eg the exterior, roof, halls) and keep the rest as seperate as possible. Trying to agree on all the decisions would be a recipe for disaster Good luck!