House of the Day: 189 6th Avenue
For the millionth time, why do sellers use brokers with crappy websites! This four-story brownstone at 189 6th Avenue in Park Slope is an interesting listing though. At first glance, the asking price of $1,395,000 seems absurdly low for the neighborhood. Look a little further and the explanation makes itself known in the form of…
For the millionth time, why do sellers use brokers with crappy websites! This four-story brownstone at 189 6th Avenue in Park Slope is an interesting listing though. At first glance, the asking price of $1,395,000 seems absurdly low for the neighborhood. Look a little further and the explanation makes itself known in the form of the capital letters: SRO. The listing says it will be delivered vacant, but that’s barely half the battle when it comes to converting an SRO. The real battle is getting HPD to sign off on a Certificate of Non Harrassment, which can take the better part of a year. Meanwhile, your carrying costs are burning a hole in your pocket. SROs are also much harder to finance. Still, a cash buyer could probably end up doing well with this.
189 6th Avenue [Century21] GMAP P*Shark
“So at $2,000, the net yield is 5.8% and at $2,200 it is 6.5%….these are VERY attractive yields. You would be lucky if your IRA yields 6.4% ad infinitum…and remember that yield increases as rents do over the years.”
This is why we are in this mess. This scenario works in a perfect world. A world without fiction. If you want to understand the concept of fiction then I suggest you read On War by Carl von Clausewitz.
Cash purchase…no mortgage
Taxes: $7,500
Ins: $4,000 (maybe less but not much)
Water: $800
Heat: $3,000
Total: $15,300….Net yield is then 4%…but would go to 5.0% if rents were $1,800.
Dave – That’s pretty stupid. I’m not impressed.
You have a environment of falling asset prices and the the lost of equity is not factored in. So you are losing value and income at the same time. Assumptions is what got us into this mess…
The What
Someday this war is gonna end…
quote:
didn’t we just read last week in the Times about those kids paying $1450 for an SRO / shared bathroom in ft. greene and they thought it was a “deal”? Just leave it as a freekin SRO!
that was an EXTREMELY isolated incident, and that girl was a certifiable moron. i mean yeah, you might eventually be able to pack a big house full of morons, but i wouldn’t be on it.
*rob*
nise17…you and I are looking at something completely different on the DOB website then. Send me the link if you would.
I think it’s pretty cute, Dave. Kitchen/bath upgrade and floor refinishing wouldn’t hurt, but other than that, it’s got all the original details that make it charming.
It is definitely an SRO with 1 class A unit and 9 class B’s. (The class B units are the SRO rooms). I see 35 violations, many of them recent.
It looks like a previous owner renovated the building without permits (and a Cert. of Non-Harassment from HPD) so the building dept’s. records no longer match the current configuration as a 4 family. The violations against the building confirm this; One of them states “file plans and obtain a certificate of occupancy to legalize the following alteration or restore premises to prior legal condition reduction in occupancy 1 class a apt & 9 class b room to 4 class a apts.”
It won’t be fun trying to legalize the illegal 4-family configuration and will probably cost a lot in building dept. fines.
Thank you landlord. I’m one too and have been on and off for over 23 years.
It would be hard to prove that it wasn’t an SRO if it was an SRO, regardless whether there is a C of O.
Cash purchase…no mortgage
Taxes: $7,500
Ins: $4,000 (maybe less but not much)
Water: $800
Heat: $3,000
Total: $15,300….Net yield is then 4%…but would go to 5.0% if rents were $1,800.
Dave – That’s pretty accurate. I’m impressed.
didn’t we just read last week in the Times about those kids paying $1450 for an SRO / shared bathroom in ft. greene and they thought it was a “deal”? Just leave it as a freekin SRO!