House of the Day: 55 Cambridge Place
Fire sale! This four-story brick at 55 Cambridge Place in Clinton Hill just got its second major price cut, one that should put it on the radar screen of many buyers. The three-family house was listed in early December at $1,500,000 before getting cut two weeks later to $1,300,000. Then just last week the price…
Fire sale! This four-story brick at 55 Cambridge Place in Clinton Hill just got its second major price cut, one that should put it on the radar screen of many buyers. The three-family house was listed in early December at $1,500,000 before getting cut two weeks later to $1,300,000. Then just last week the price was whacked down to $1,095,000. At a mortgage rate of 5 percent and rental income of $1,500 per rental apartment, you could be living in the owner’s duplex for under $1,500 a month including taxes and insurance if you can come up with $300,000 down.
55 Cambridge Place [Warburg] GMAP P*Shark
Is that the same piano we always get to see in empty parlor floor pictures? If you’re going stage with just a piano, put in some glasses and a shaker to give it a Cole Porteresqe feeling.
Lucy- Dave is right. I just got to the bottom of the thread. I got stuck on the skittles references.
On a conference call right now. I’ll go into more details later.
No, I don’t think its particularly risky even with all the hand wringing going on here by some of the posters who are saying (wishing & hoping) that rents are falling.
lucy….contact Adam Dahill…his details are on his profile here…search his name or “mortgages” here or in the Forum and you’re bound to find him.
dave, i thought the prior history clause was ridiculous too, since really it’s the property not the landlord that determines profitability. but this was from manhattan mortgage, not some fly by night outfit. maybe the rules have changed since i last asked about 3 months ago. can you recommend another broker? also, lots of people in Clinton Hill and Fort Greene depend on rental units to help cover their mortgage. I don’t think I’m suggesting anything unusual or particularly risky.
lucy…I have recently worked with three different brokers and none of them have made any limitation that you have had to have been a landlord for two years to have rent qualify as income. That’s absolutley ridiculous. Why should prior history have any bearing on what a future property may or may not support.
As far as your statement “Otherwise, they only consider a very limited amount.” The devil is in the details…what is the limited amount you are seeing??
I have seen it range from 40-65% and I wouldn’t characterize that as a “very limited amount.”
If a buyer’s expected rental income is make or break for a mortgage then perhaps he/she shouldn’t be buying that property.
haley you stated “And to use the garden and first floor as a duplex, you have to use the common hallway to get between the two floors of your “duplex”.
this is completely incorrect. i lived in a duplex with the garden as kitchen/living/dining & parlor as 2 bedrooms. no common hall issues. the parlor hallway/stair was closed off. so the we used the homes regular interior stairs to go up and down. when you go up to the parlor floor you cannot turn to get into the hallway b/c a wall was built for privacy. the tenants entered on parlor floor and went straight upstairs to their apts. we entered on the garden. completely seperate.
house is still overpriced.
By the way Dave, I would be delighted to be proven wrong.
Lucy
Dave, I was told by a mortgage broker that since the credit crunch they won’t consider the rental income as net income any longer unless you have already have a two year history as a landlord on another propert. Otherwise, they only consider a very limited amount. Here is the quote I was given on a property of 1.1 and 25% down. One had to show 6,333 monthly rental income (in addition to around 120k adjusted gross) to qualify for a mortgage of 825k. Obviously this property (and few others) generate that kind of income unless you are only occupying one floor. If a person makes more than I suppose they could show less rental income. Although with rental income of 3k a month (in the case of 55 CP) a person taking home 10k a month could easily afford the mortgage payment (around 5k by my estimation), the banks are being way more conservative.