Report: Foreclosures Hurting Prices in Bed-Stuy
Small multi-family buildings in lower-income neighborhoods of Brooklyn have been particularly hard hit by the housing crisis, according to a new report from TerraCrg Commercial Realty Group. As reported in The Real Deal, 80 percent of foreclosure filings in Brooklyn over the past year were for mortgages under $1 million and 51 percent of non-residential…
Small multi-family buildings in lower-income neighborhoods of Brooklyn have been particularly hard hit by the housing crisis, according to a new report from TerraCrg Commercial Realty Group. As reported in The Real Deal, 80 percent of foreclosure filings in Brooklyn over the past year were for mortgages under $1 million and 51 percent of non-residential mortgages were for three- to four-unit residential buildings; the article also notes that “the majority of the foreclosures took place in lower-priced neighborhoods like Bed-Stuy and East New York.” The result? “A bevy of three- to four-unit residential buildings in Bedford-Stuyvesant can be had for under $300,000.” No big surprises here, though the headline tries to put a positive spin on the news: “Discounted Brooklyn brownstones coming to market, but not in prime neighborhoods.”
Discounted Brooklyn Brownstones Coming to Market [TRD]
Check out this article about foreclosure auction in Detroit:
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http://business.theatlantic.com/2009/10/detroit_defines_a_bad_real_estate_market.php
You might wonder if there’s an easy way to identify a really bad real estate market. Detroit can help. How about when you can’t auction houses off with a starting bid of $500? Yep, that’s pretty bad. We all know that things are truly awful in Detroit, but this answers the question: just how bad?
In a report that can really only be described as scary, Reuters says:
Despite a minimum bid of $500, less than a fifth of the Detroit land was sold after four days.
So that’s not one or two properties not selling for $500. That’s over 80%. Maybe this shouldn’t be surprising, since back in January there was a report that the median home price in Detroit was $7,500. This might just indicate it’s fallen a bit… further. Here’s some more detail from the article:
Bitter Bubble, where is your investment property and why are you taking a bath? Did rents go down and the monthly is now more than rents?
BBB, investmt ppty? thought you lived there?
This article is exactly what I have been saying on here for a year! There are really cheap houses available in the “subprime” areas.
But look — you don’t want to buy foreclosures for $200,000-$300,000. Go see one or two, and you’ll figure out why.
They don’t have plumbing, they don’t have roofs.
Only people who can buy these are contractors or architects or people like Denton with a vision who want to completely gut a place and can either pay all cash or don’t mind taking out a a203K loan.
What you want to do is find a nice house *before* it becomes a foreclosure, and pay $400,000 to $600,000 — depending on size, number of units, rent in that particular area, etc.
Also, be smart about where you buy. Some of these areas are better than others (in terms of desirability, stability of rents, etc.)
how much do you think its worth today? Or better yet if you had to sell it what cuold you get for it? I am taking a bath on my investment property
My mortgage is $2600 including taxes (which are only $2,000 a year) because I put a lot more down. The basement unit I get $1,200 and they are gret tenants. I have the top two floors.
That said, I put another $100k into it to make a huge ensuite master bath and do over the second bath, add a deck and have the facade restored.
I only looked at about 12 houses. It was actually hard to find one with all the great details left inside. I’m on Stuyvesant about 4 blocks up from Fulton Park…it’s very quiet over there and a great place to live.
Wow, you got a great deal then. You paid $320/sq feet for a renovated and restored brownstone and with southern exposure. With 20% down, you are probably paying 5k a month for mortgage. If you are able to rent out two floors for $1,200 each of 2,400 in total, you are net paying only $2,400 a month to live in a duplex before tax deductions.
$820k, 2,560 sq ft…all new roof, plumbing, wiring and all the architectural detail inside….basically all renovated & restored. Very private yard as it’s got buildings on one side & the back with no windows plus the open side has southern exposure.
David, what did you pay for your brownstone in 2007 and how many square feet is it?