Money Pit With a Happy Ending
“I got a hole in my wall the size of a Buick.” Not exactly what you want to hear when you answer a call from your next door neighbor. For David Petersen, who’d recently purchased the 1,100-square-foot house on 18th Street near Greenwood Cemetery for $260,000, these words bck in 2004 were the beginning of…
“I got a hole in my wall the size of a Buick.” Not exactly what you want to hear when you answer a call from your next door neighbor. For David Petersen, who’d recently purchased the 1,100-square-foot house on 18th Street near Greenwood Cemetery for $260,000, these words bck in 2004 were the beginning of an overwhelming process that, among other things, involved him begging and borrowing several hundred thousand dollars more than he initially intended to fix the ailing house. Although his inspector had picked up on a bunch of structural imperfections, he hadn’t pointed out the fact that the house had, literally, no foundation. Two years later, though, Petersen and his girlfriend are ensconced in their 12 1/2-foot-wide house finished in a “comfortable modern” style. Perhaps the best news of all? The house was recently reappraised for $1.25 million, allowing Petersen to pay off all his credit cards and second mortgages and even have a nice chunk of equity left over.
Brooklyn Bargain? First Check the Cellar [NY Times]
Either way, sounds to me like this guy has already ATM’d this house based on that appraisal, which is a shame since even with lots of reno he would still have been paying a pretty low mortgage for the area.
That block is surprisingly quiet and leafy. The Expressway is way underneath so it sounds more like a rushing stream (ok, I know I’m pushing it, but it is a dim sound) — I think the sound is much better than a “prime” block with idling Fresh Direct trucks and impatient drivers trying to get by.
12:05–“selling” as in since June, or “selling” as in May? Perhaps I’m wrong, but it seems to me that prices in areas like this have taken a dive since early Spring.
I was surprised at the number but, while that seems a bit high, I don’t think it’s wildly out of reach, given the quality of the reno. Houses in need of significant rehabs in this area are selling for north of $800k (and two blocks over on Prospect Ave, closer to $1 mil.)
Incidentally, the house next to this one — with a nice renovation but significantly less square footage — sold two years ago for $740k.
I bet the appraisal at 1.25M was a few months ago. Now, it’s worth high 900’s max. That area, especially on the expressway, has definitely decreased recently.
I think the could get as much as 1M, given a discount for living across the expressway. it doesn’t seem that noisy there, though.. sort of like being on columbia heights, where the BQE is under the street level.
yeah, 1.25 is a bit steep. because it’s such a cool reno, i’d say 8 or 9 hundred, tops. cool house, though. i’m directly across the expressway from them and, if our place needed a gut reno, i’d do it just like that!
My exact sentiment 10:52.
1.25MM???? Stop.