House of the Day: More Dean Street Action
In the wake of Thursday’s news that 152 Dean had gone into contract $150,000 above asking price, it seems timely to look at another new listing on Dean Street with a similar profile. We don’t know the exact address (but are counting on someone telling us) of this 4-story, 3-family brick, but it looks like…
In the wake of Thursday’s news that 152 Dean had gone into contract $150,000 above asking price, it seems timely to look at another new listing on Dean Street with a similar profile. We don’t know the exact address (but are counting on someone telling us) of this 4-story, 3-family brick, but it looks like it’s on an attractive stretch of the street. The house has been recently renovated with some modern touches, but a decent amount of original detail appears to remain. We suspect it may be a little more built out than some buyers would like, but clearly the reno was a quality job. From nothing more than looking at a few photos, 152 Dean feels more up our alley, but we’re sure this won’t have a hard time attracting buyers. Do you think $2.2 million is on the mark?
Dean Street Townhouse [Brown Harris Stevens]
152 Dean Street In Contract [Brownstoner]
Ok, I’m gonna skip the rental income question and cut straight to Re: Renovation. Mr. B, are you kidding me? WTF is up with that 3/4 height/half-witted wall dividing off the kitchen?! With the little cut-out? Are you kidding me? That’s the stupidest thing I’ve ever seen – looks straight out of a 1980s rental building in Murray Hill.
It’s good to have options with the flexibility of 3 or 4 family.
As I start approaching, planning for retirement I’m very glad I have 2 rentals in my 4 story.
Originally had 3 tenants and then when had mortgage paid off made duplex for myself.
as to why someone would pay that much for a duplex, i can only confess to my own wishful thinking–that if rental income can help us get into a house, then sometime down the road we can expand our space by phasing out the rental income as our own financial position improves. this may not make total sense, but i think a lot of buyers are thinking this way. for those of us who love brownstones and don’t have 2-3M ready, this seems like the only way to get in.
I think this house is closer to Bond (which would still put it in the BH historic District). Dean Street between Smith and Bond has tended to be the trendsetter for BH prices, being among the first houses to break the million-dollar mark approximately 5 years ago. The price might be off by about $150K. If the owner is rationale, I predict a sale price close to 2.1M.
Rental income: I think the rental income to price ratio went out the window along time ago. Given the slow climb in rents, the last time we saw prices in BH that would allow a 3-family homeowner to make a colorable claim that the rent covered the mortgage was probably 1998.
I guess the question would be how much is it worth (or should there be a discount) to convert a 3 or 4 family into a triplex rental or single family? Granted that all or at least 3 continuous floors can be delivered vacant.
I agree which gets to the point of the first question which was “At what price does having an owner’s duplex and two rentals above stop making economic sense for a buyer?”
Seems like someone willing to pay $1.6 mm to $2.0 mm for their own space wants an entire house or a triplex with a rental.
“Assuming about $60,000 per year of income from the two rentals (say $2,000 per month for the 1 bedroom and $3,000 for the 2 bedroom). At 15 times rent roll, the rentals would be worth about $900K. That means the owner’s duplex is costing about $2.0 million. Looks like a great place, but that’s a very expensive duplex. Even for the prime PS location.”
well the same can be said for dean st: definitely less rental income for two bog standard 1.5 bedders with no decks.
so the math still doesn’t work:
$1.7m for a 1200 sq feet 2 bedder plus the hassle of handling the move-in move-out vacancy and please-fix-this arrangements of two families?
there is also no mention of a basement.
It’s debateable how much better a location 306 Union Street is (306 = somewhere bwteewn Court + Hoyt). Both are busy traffic streets. I Don’t think that part of Union is landmarked.