House of the Day: 531 11th Street
The owners of 531 11th Street appear to have done quite a nice job with the three-story brick house. While not as grand as many of the houses in the North Slope, this 2,800-square-foot three-family definitely has charm, though it probably doesn’t make a lot of sense for a family buyer in this current configuration….
The owners of 531 11th Street appear to have done quite a nice job with the three-story brick house. While not as grand as many of the houses in the North Slope, this 2,800-square-foot three-family definitely has charm, though it probably doesn’t make a lot of sense for a family buyer in this current configuration. It’s also tough to make the numbers pencil out as a rental property: At the asking price of $1,895,000, the monthly mortgage alone will likely be well over $10,000 a month, meaning you’d have to rent out each floor-through unit for at least $3,500 a pop just to keep the bank happy. Then there are real estate taxes, maintenance, utilities, etc. Tough.
531 11th Street [Corcoran] GMAP P*Shark
For this price, where’s my central A/C (window units?!), where are my upgraded mechanicals and fancy new radiators (old cast iron?! probably steam!). Where’s my mention of working fireplaces and landscaped garden? Where are the ‘renovated bathroom’ pictures (no pics = they are gross)? Where’s the master suite with bath (oh wait, there’s a kitchen there!)? etc, etc, etc
On the investment issue, Mr B. is right. Unless you can tell me that the units will fetch more than $3,500 per month, assuming a 70% LTV, there’s not much profit after mortgage, taxes, utilities and maintenance.
You know, it begs the question:If an owner chooses not to occupy a unit in a brownstone, rents out all of the units at market rate and cannot cover his mortgage, insurance, Con Ed, ect., is not that property overvalued ? Just sayin’.
I actually know 3 or 4 people who are out there looking for investment deals right now. Some people like to take advantage of buying in a slowing market, instead of at the top.
Imagine that.
Yeah it is a weird situation on this one. Being recently renovated just isn’t as valuable when you have to rent out the place. Normally this much square footage recently renovated at this price would be decent.
It would be easy enough to change the C of O to a single-family–just rip out the upper kitchens. (Although from the floor plan it looks like the nice kitchen is on the top floor because an island is shown there, which is a drag.)
I can’t imagine that anyone could seriously consider this for the rental income, unless you wanted to keep it that way for just a few years and eventually took over the space yourself.
Whoever buys this would do so an income-producing property, no? You don’t have to live in every building you buy.
Yeah, for all the reasons listed in the above post this is a tough sell. Needs too much work to be a reasonable one-family and the rental economics don’t add up. Hard to see why they would even bother listing it at that price.
Brownstoner, it would have been nice if you listed the price!!!
BTW…1.895
Not sure someone paying this kind of money, wants to live in a 1-bedroom.