House of the Day: 285 Park Place
We suspect this new listing at 285 Park Place will last about two seconds on the market so you better get cracking. The two-family limestone has beaucoup de-tails and is located on one of the nicest blocks in Prospect Heights. Some buyers will want to sink some dough into modernizing the kitchen but we’re finding…
We suspect this new listing at 285 Park Place will last about two seconds on the market so you better get cracking. The two-family limestone has beaucoup de-tails and is located on one of the nicest blocks in Prospect Heights. Some buyers will want to sink some dough into modernizing the kitchen but we’re finding the retro cabinets to be quite fetching. The asking price is $1,600,000.
285 Park Place [Townsley and Gay] GMAP P*Shark
Is that Lincrusta in the hallway?
Considering you can’t spell hammer boerumhillresident, I’d rather you stay away from anything historic.
Also, while some of the detail is nice, I personally would take a hamemr to that fretwork dividing the kitchen from the front parlor room.
Those rental assumptions seem a little high for Prospect Heights.
It’s far more noteworthy to compare NYC to London or Geneva or Hong Kong or Moscow than it is comparing it to Cleveland or San Diego.
NYC is a world city and one of the more affordable ones at that.
An interesting chart here shows NYC as the highest price to rent ratio of 50 cities.
http://trulia.movity.com/rentvsbuy/
dude where’s my car?
dude, your methodology seems right, but your numbers don’t. A $1,280M mortgage at 5.5% would be $7,267/mo ($5,866 in interest in the first month). Taxes, Insur, and other expenses couldn’t be more than $1,000/mo.
Also, your revenue is grossly understated – as people pointed out above.
Assuming that you can get a market rent of about $6,000-$6,500 for the triplex, and $2,000 for the garden, that’s $8,500/mo in revenue. If your interest and other costs are $6,866, your NOI for year 1 is $19,608. That’s 6% Cash on Cash, or just about right for an investor. . . . .
The only problem would be dealing with the tenants in there paying $4500. It takes a strong stomach and a lot of cash to deal with that crap.
If dude’s calculation’s are correct (and I don’t know what “opportunity cost” is, but I’m sure that someone here can explain it) for that money, I am better off staying in my small apartment, and continue being the lazy-pants that I am. I’m paying less money for much less hassle.