HOTD: 306 Washington Avenue, Two Price Cuts Later
The price of 306 Washington Avenue in Clinton Hill has been in free-fall since we featured it as a House of the Day when it came on the market last summer at $2,300,000. It looks like it was a bit of an understatement when when we said that the “asking price might be a bit…
The price of 306 Washington Avenue in Clinton Hill has been in free-fall since we featured it as a House of the Day when it came on the market last summer at $2,300,000. It looks like it was a bit of an understatement when when we said that the “asking price might be a bit on the high side.” In September, the price was trimmed to $2,100,000 and then another $200,000 was taken off last month to bring the current asking price to $1,900,000. The house was also included on this past weekend’s multi-broker house tour. Think it has a shot at this price?
306 Washington Avenue [Douglas Elliman] GMAP P*Shark
House of the Day: 306 Washington Avenue [Brownstoner]
I also want to thank Julie/Christine for posting. . .even though i disagree a bit with their sales pitch on the house.
Looks like Julie & Christine can’t take the heat!!!!
Right on sam! I include myself in the mix of people who would never buy a house with rent stabilized or controlled tenants without understanding that they might be there forever. I would ask the broker to tell me what she thinks the price would be without those tenants, and in that location. I doubt the discount she thinks she is offering is anywhere near acceptable to people who truly understand the implications of having those tenants. Also, she fails to mention their ages. If one is 62, or even close to that, they will be there forever, and there is nothing you can do about it. And one more thing, who buys an entire brownstone at that price and thinks living in 1400 square feet of it is all they will ever want to do? And If that really is the case, better to buy with market rate tenants only and get a decent return on your investment.
Having one rental unit at market with nice tenants that pay the rent is one thing. Having two more rent stabilized tenants is 3X the work for virtually no more money.
Well, to each their own. But for 1.9 million one could buy a really nice home. One is not “forced” to buy something with two pre-existing rent regulated tenants with who knows what gripes and problems who will share your roof with you and your family.
I just think its nuts. Others may disagree. But it is typical of a broker to say something like “I defy you to find a house like this for only 1.9 million”. All they are doing is trying to intimidate you into thinking you don’t really have that many choices in “your price range” and inflate the price of perfectly ordinary real estate.
I thought rent stabilization only applied to buildings with six or more units. Could someone explain?
I like this block quite a bit and the house appears to be nice as well, but I don’t see how the brokers think this math works out.
You buy at $1.9 million and have to put $500,000k down, leaving you with a mortgage of $1.4. Assuming you can get that mortgage, you will be paying approximately $9,000 a month just for the mortgage payment (and that’s assuming a 6.5% interest rate, which seems generous as most of this will be a jumbo loan). Plus taxes and utilities of approximately $700 per month, assuming income of $4200, and assuming mortgage deductions for the rental expenses and your home mortgage tax deduction, you end up putting half a million down and paying around 5k a month to live in this duplex. (I’m not sure where $4200 comes from, but it does not seem to include tenant utilities and taxes). Plus you have very limited potential upside with the rent stabilized units.
You are far better off saving your half million dollars and paying 3000-4000 month to live in a comparable rental.
“i would purchase a building where i have undervalued rents that will continue to go up every year or 2 years when tenants renew”
go up what, $50 per apartment? nice try, 2 million in the hood ain’t happening…
Be nice people. It’s rare for a broker to post with transparency instead of anonymously.
Julie/Christine — Would you disclose what the rents are for each of the apts so we can validate the potential rent roll. This is an attractive building in a good location but clearly the tenant situation causes some of us a little concern.
Thanks.