Rental of the Day: 162 Dean Street
This four-bedroom triplex rental at 162 Dean Street is looking pretty good to us! We love the three wood burning fireplaces, the windows, and the addition of the deck and garden. Renting it will set you back $10,000 a month, which isn’t cheap (it’s more than $3,000 per floor) but it also isn’t the most…
This four-bedroom triplex rental at 162 Dean Street is looking pretty good to us! We love the three wood burning fireplaces, the windows, and the addition of the deck and garden. Renting it will set you back $10,000 a month, which isn’t cheap (it’s more than $3,000 per floor) but it also isn’t the most expensive we’ve seen for a brownstone rental around this size. Do you think it could get close to ask? It’s been hanging out on the market for more than 70 days.
162 Dean Street [Douglas Elliman] GMAP P*Shark
Sounds like panic mode is setting in. I am not ashamed to say that we made the worst deal ever. Bought a single-famiy, three story, with finished basement townhouse on Boerum/Cobble Hill border in 2007 for $2M, with half down in cash and an interest only mortgage for first five years. We are renting it out for $7000/month; now the question is hold or sell. Up the creek I’m afraid.
DIBS, if you sold today, after 8-10% transaction fees (agent, taxes, etc), you think you’re where you were in May 2007?
If you’re only thinking about money, wouldn’t you be better off if you stayed in the Manhattan condo?
…if you sell now, DIBS. If you “hold on” for another -37.5% decline, you’ll be behind.
***Bid half off peak comps***
“I certainly couldn’t rent the same amount of space that I have (plus deck and yard) for what I pay.”
If you put $540K down you could, wasder. But if half off comes to fruition, like rent, you don’t get it back. You divide it by months of ownership to convert it to the rental comparison.
DIBS numbers aint working, bkhabitat. It’s a mental trap to think only about the monthly nut. You gotta divide difference between gain and cost by months of ownership in order to compare to renting.
3,586 minus 1,706 is pure monthly nut difference. Doesn’t account for the likely differences in down payment. He rode the Ponzi wave in order to arrive at 1,706. Had you rented instead of blowing your gain (even after tax) on another hyperinflated house, you’d be ahead considering that 60% downpayment. Now, the economy/money supply’s deflating so $270K in cash (after gains tax) is an even better position.
Mopar – Please explain exactly how my logic is warped.
***Bid half off peak comps***
BHO, I’ve already told you that from recent sales, the house is likely to sell for what I paid so the downpayment is recouped.
I’ve already saved $67,000 of the $90,000 (see above) additional I put into it…by next year, I’ll be ahead of the game.
I want to buy a multi-family for the subsidy (provided it works out similar to dibs situation). I think time is on my side at this point. By that I mean prices don’t look like they’re shoot up anytime soon, they also don’t look like they’ll drop by very much any time soon.
Brags about 40% LTV but leaves down payment out of the equation. 1,706 + 0.60 (down) x 900,000 (presumed purchase price)/60 – [450,000 – 360,000 (half off minus principal balance)]/60 = $9,206/mo. That’s not counting renovations.
***Bid half off peak comps***
BHO, your logic is warped. Dave, we’re paying about the same. (Of course, my place is a hovel, but that’s a whole other topic.)
On this house, I love the kitchen. But *what* is up with that tub in the middle of the room? Looks ridiculous. I’d turn it back into a bedroom.
bkhabitant, that’s a difficult question. I bought it in may, 2007 so if I had kept all the cash, maybe I would not have put it all in the stock market but certainly a big chunk of it.
the market, as we know peaked in July 2007 (and I didn’t sell my Manhattan place until Sept 2007 so maybe I might have been frightened enough to keep it in cash and avoid the fall in the market, maybe not.
There are too many variables to know woulda, coulda shoulda. What I do know is that the house will probably sell today for what I paid for it and I’d be out about $85-90,000 additional that I put into it.
Additioanlly, the economics work out even better….
My condo in Mnahattan had a similar $2,600 mortgage PLUS $416 in taxes + $570 in condo fees so I’m way ahead having sold that and either rented or bought the Bed SStuy place.
So I went from paying $3,586 per month to paying $1,706 per month with the move!!!!! That savings, over the three years, amounts to $67,680.