House of the Day: 130 Summit Street
At first blush, this three-family house at 130 Summit Street looked like agreat deal to us: $1,350,000 for a four-story house with lots of charm in Carroll Gardens? Sign us up. But then comes the heartbreaking fine print: The 3rd floor apartment has a dreaded rent-controlled tenant paying $325 a month. (Approximately $1,600 under market….
At first blush, this three-family house at 130 Summit Street looked like agreat deal to us: $1,350,000 for a four-story house with lots of charm in Carroll Gardens? Sign us up. But then comes the heartbreaking fine print: The 3rd floor apartment has a dreaded rent-controlled tenant paying $325 a month. (Approximately $1,600 under market. Ridiculous!) Anyway, we’ll let the quants out there decide how big a discount to market value that should mean for the house. Still might be a decent play, except for the fact that the rent controlled tenant’s location means the owner won’t be able to expand beyond a duplex.
130 Summit Street [Douglas Elliman] GMAP P*Shark
Antidope hits the nail on the head: Back when I was house hunting I looked at 2 on Summit. Inside, with windows closed, the realtor and I could just barely hear each other over the noise and constant rumble from the BQE, and this house is even closer to the roadway than those were! Although a RC tenant can preclude so many of the ways you would like to use your own home, the biggest quality-of-life issue for me would be the noise.
Doesn’t it seem like every building on Summit comes with a rent controlled tenant?
how’s this for jumping to conclusions — I can tell from the owner’s decor that they’re young enough and on the ball enough to have gotten rid of the tenant if at all possible. Since they can’t, I can’t. I gotta assume that. So a 96 yr old italian grandmother I might be able to live with. But it’s just as likely a 70 yr old and her 40 year old daughter and the daughter’s daughter? Nope.
Spgrxxi — Where do you get the information that the tenant is the former owner? That would not be rent controlled, but rather a life estate, which is a huge difference from a rent control situation.
Antidope — you are correct that, if this is a true R/C apartment, an immediate family member who has been living there for at least 2 years (I think) with the R/C tenant can continue to live in the unit if the R/C tenant were to die.
What I am not sure about is whether the apartment remains subject to rent control, converts to rent stabilization, or what. Also, I am not sure what the restricitons on evictions for owner occupancy would be after such an event.
r u for real brownjkr?
i’m sure there’s a calculator on your computer.
my rent total (2 apts) is slightly less than this. BUt I’m a wuss landlord.
Can someone do the math, please.
If one tenant is paying $325. and the Other $1,950. How much will the mortgage be at this asking price?
if son or daughter is living there then they are tenant also.
2 comments:
first, who are the people who lowball every single property on the ticker? Are you people blind to actual sales data? That house will obviously fetch way more than $1 million. So what is the point of lowballing it like this? It makes the tool that much less accurate.
Second: it seems the rent controlled renter is the previous owner of the buidling, she sold, but with a provision allowing her to live in the building forever at a discounteed rent. Not sure if that carries over to her heirs.