306 Washington Sells for 26 Percent Below Initial Ask
When we last checked in back in November, the price on 306 Washington Avenue had already been reduced from $2,300,000 to $1,900,000. Not far enough, it turns out. The five-story brownstone just closed at the end of last week (not long ago enough to make it into public records or the Top Sales list) for,…
When we last checked in back in November, the price on 306 Washington Avenue had already been reduced from $2,300,000 to $1,900,000. Not far enough, it turns out. The five-story brownstone just closed at the end of last week (not long ago enough to make it into public records or the Top Sales list) for, get this, $1,680,000. The four-family brownstone went to contract in January just shortly before one of the rent stabilized tenants vacated, creating some instant value for the new owners. GMAP
“Um Retard, I’m a Broker and I would use Brooklyn MLS Comps. The same ones used by Banks and Appraisers, not the “Zillow” jack-off crap.”
So do it. You could actually have a very positive effect on this conversation by giving us real hard comps.
“Why don’t you do the research? Look up the house on zillow, find those you think are comparable in size, make-up and location, and post them in this thread? Curious what you come up with.”
Um Retard, I’m a Broker and I would use Brooklyn MLS Comps. The same ones used by Banks and Appraisers, not the “Zillow” jack-off crap.
The What (1.1 Million)
Someday this war is gonna end…
By the way… my post above was an invitation. I REALLY REALLY want someone to explain how a $1.68 million price tag is appropriate for a 4-unit rental property. Honestly, I am open to be corrected, but this does NOT seem like a good investment decision.
(Especially with the comments about what poor condition it’s in… suggesting it would be even more difficult to produce adequate rental income to make it self-sustaining.)
I may be missing something major here…
I went to look at that house and I think that while the buyer got it at a good price, it’s hardly a “steal”. That place is mess! It has great bones, but I’m sure that the new owners will have to spend several hundred thousand dollars to make it livable (particularly if it’s going to be a one family). EVERYTHING in that place needs to be renovated…kitchens, bathrooms, fixtures, windows…EVERYTHING! The day of the “open house” that I went to, it was so gross in there I felt like I needed to take a shower as soon as I left…
BRG, it ain’t that easy:
– http://www.villagevoice.com/2008-10-01/news/a-hip-young-couple-clears-out-low-rent-tenants-for-its-television-and-playroom-needs
“If the owner is converting the townhouse to a one-family, they most certainly do not need to re-new the lease and can start eviction”
brg, I have never tried to do this, but I don’t think it is that simple. The courts in Brooklyn see ownership as a set of responsibilities, not rights. The tenants have most of the rights. There are a lot more renters than landlords in the Borough. One has to accept that political reality. Fortunately, most tenants are good, decent people and do not want to have their credit ruined etc by not paying rent and holding out contrary to the landlord’s wishes. BUT there are those indivuals who use the law to live basically rent-free for years and to procure a large amount of money from the landlord in order to vacate. No everyone is nice out there. The judges are entirely on the renter’s side. It is just one of those things.
Let’s say the buyer had a 20% downpayment… and was able to finance the rest.
Why is $1.68 million a “good deal”?? They’ll have to come up with $10,000 a month to cover the minimum ownership expenses, not including utilities or maintenance.
That’s $2,500 per unit if they are all the same. Now, what if they need a new boiler or a new roof or actually wants to pay someone to sweep and tidy the common areas?
I honestly don’t get the financial calculations here. Of course, the buyer could be plopping down a lot more, but now his/her cash is tied up in a fixed asset that (from the above calculations) isn’t worth the price. Shouldn’t the rental income have the potential to make the property self-sustaining?!?!
“A landlord cannot refuse to renew the lease of a rent-stabilized tenant.”
If the owner is converting the townhouse to a one-family, they most certainly do not need to re-new the lease and can start eviction.
“And believe me, the law has both upper and lower incisors and a couple of poison fangs.”
Care to explain? The ability to deregulate at $2000 strikes me, as a humble renter, as pretty poisonous to anyone who is trying to hold on in Brownstoner’s favorite neighborhoods.
Even if the tenant does not pay ANY RENT they can, if they are clever, continue to occupy the apartment for years and years. There are many renters in Brooklyn who have not paid rent for a decade.
Really? How many could there be? A quick check of the 2000 Census shows less than 2% of units in Brooklyn had no contract or gross rent.