House of the Day: 275 12th Street
This house on 12th Street in the South Slope has been on the market for more than three months but we didn’t hit it until now because the listing doesn’t reveal the address. But through the magic of Property Shark we were able to deduce that the address is 275 12th Street. Aspects of the…
This house on 12th Street in the South Slope has been on the market for more than three months but we didn’t hit it until now because the listing doesn’t reveal the address. But through the magic of Property Shark we were able to deduce that the address is 275 12th Street. Aspects of the house are attractive, but we’re not so keen on the kitchen, the yard or that weird awning thingy out front. The asking price was—and still is—$1,385,000. Does that sound reasonable to you?
275 12th Street [Douglas Elliman] GMAP P*Shark
“You really have to feed all the numbers into a model that you know works and isn’t based on unrealistic assumptions. Sometimes the results are surprising. At one time there was a three story three family and a four story four family on the same block for sale. The three family looked like the better deal, but when you ran the numbers the fourth floor of the four family was carrying more weight than you would think, and made the difference between break even and positive cash flow.”
Posted by: raphael9 at December 21, 2009 3:43 PM
Interesting, Raphael9.
What do you mean by “feed all the numbers into a model that you know works”? What are all the numbers? It seems like there would be a large amount of factors involved. Could you give more explanation?
It’s always amusing to read a NY resident say stuff like “constant hassle of the crowds, noise, pressure, jostling, lack of greenery, lack of fresh air, expense, traffic, noise, size of the city…” etc … why then live here? That’s what makes it great (well, lack of greenery is rubbish unless you close your eyes to those two magnificent parks).
I’d rather be dead than (a)live in those “incredibly relaxing” suburbs or exurbs. Oh…but how would one tell the difference?
If I were a human, I’d live in the woods near a lake and going fishing all day.
Hmmmm people unhappy in New York. Maybe it’s the constant hassle of the crowds, noise, pressure, jostling, lack of greenery, lack of fresh air, expense, traffic, noise, size of the city, difficulty of doing daily errands, impossibility of getting into a restaurant, etc. I used to go visit DH when he lived in North Carolina and just being in the area is incredibly relaxing.
Regarding New Yorkers being unhappy, in his film Manhattan, Woody Allen postulates that people choose to live in NYC because they WANT to be unhappy.
Boerum Hill,
You make good points.
i totally agree with you minard. the cost of living here really is intense. and home ownership is out of the question for most. especially single people.
*rob*
I think someone would need to pay me more than $200k to live in west texas.
Pigeon,
A few points:
1. That $200K investment will likely have a cost of capital (i.e. it will be borrowed). At 5% interest, it will cost $10K to get that $24K of annual rental income.
2. Landlording can be work. In your analysis, all the time spent leasing + arranging for repairs etc. is provided free by the owner.