House of the Day: 289 Garfield Place
289 Garfield Place was an Open House Pick last month shortly after it hit the market with a price tag of $1,950,000. It’s a nice house in a nice Park Slope location, but it feels to us like it lost a bit of its soul when it was recently renovated. It’s also a four-family house,…
289 Garfield Place was an Open House Pick last month shortly after it hit the market with a price tag of $1,950,000. It’s a nice house in a nice Park Slope location, but it feels to us like it lost a bit of its soul when it was recently renovated. It’s also a four-family house, which takes it out of the running for a lot of family buyers. Of course, having three rentals does help take the sting out of that monthly mortgage payment.
289 Garfield Place [Corcoran] GMAP P*Shark
“The parlor studio in the building next to mine is rented for $1700. The one on the other side is $1550. ”
Your neighbors are being robbed.
$10,300 would be $123,600 per year and a gross yield of 8.24% on the current widget estimate of $1.5MM. Not bad.
Subtract my estimated expenses and a apply a 6% net yield and it comes out to
$123,600 – $17,580 = $113,020 which is 6% of $1.88MM
The returns are very much subject to small moves in the monthly rents.
Is that factoring in that you’d be living there as well, Dave…?
Or are your calculations based on it being strictly for investment. Just curious.
And yes, I think the price is too high, btw.
So my renatl assumptions are a bit on the conservative side.
Still, as an investment property it’s worth only $1.2MM +/-
The floor throughs could be $2800 each.
Studio $1500
Duplex: $3200
$10,300 total.
Obviously this is without seeing the place, but it’s possible…
So would the rents be $2,500 (duplex), $1,000 (1 F), $2,000 each for top two floors???
Are those numbers close???
If so, added up they would be $90,000 gross for the year and that would be a gross yield of 6% on a PP of $1.5MM, which is too low of a gross yield.
Subtracting taxes ($10,580) insurance ($3,500) and utilities ($3,500) you get net income of $72,420 and if the riske free rate is 4.4%, I’d want a 6% net yield on this which would make an acceptable purchase price of $1.2MM..as an investment property.
Yes, I know I’ve left other incidental expenses out.
“Parlor studio shouldn’t exist at all, but maybe you could get $900-1200 for it.”
The parlor studio in the building next to mine is rented for $1700. The one on the other side is $1550.
“So Park Slope experts, would the 4 rents add up to $10,000 a month? ”
Maybe.
3rd and 4th floors should be around $2,400-2,700 each.
Parlor studio shouldn’t exist at all, but maybe you could get $900-1200 for it.
Someone would probably pay $3k+ for the duplex.
this is an investment ppty.
seems expensive to me, but…
for reference: 458 2nd St and 106 park pl are a few hundred sq ft smaller (3360) and 3 families. 2nd st sold in oct09 for 1.975 and park pl sold in jun09 for 1.87.
so some folks think there is value.
idiots, right?