http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president en-US Thu, 20 Jun 2013 05:57:20 +0000 http://bbpress.org/?v=1.0.2 q http://brooklynian.com/forum/search.php http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765746 Fri, 15 Mar 2013 11:05:08 +0000 whynot_31 765746@http://brooklynian.com/forum/ <p>CTK-<br /> My assumption is that those who take the payouts are pretty desperate.</p> <p>This assumption is not the same as being undesirable or not responsible.</p> <p>It simply is that they are willing to take fast cash to deal with immediate needs, despite this decision not -perhaps- not being beneficial for them in the long term. </p> <p>Legally, the tenant gets to decide whether to take the offer, negotiate more, or stay put.</p> <p>I suspect a lot of them pay off urgently due credit card debt because I think that would be one of the few circumstances in which I would take such a payout if I was a below market tenant, because I like living in Western Brooklyn. </p> http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765744 Fri, 15 Mar 2013 10:28:31 +0000 eastbloc 765744@http://brooklynian.com/forum/ <p>It's all a matter of perspective. They're quite reasonably undesirable to landlords because their rents are lower than the average newcomer. </p> http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765740 Fri, 15 Mar 2013 09:55:22 +0000 Cool The Kid 765740@http://brooklynian.com/forum/ <blockquote><p><cite>whynot_31 <a href="http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765738">said</a>:</cite><br /> I wonder if the below market tenants have already been offered a payout, but declined it. </p> <p>Clearly, it is in the sellers interest to be able to deliver the building with the least number of such units. But, if I had made such attempts and failed, I would want to hide that fact.</p> <p>In terms of cash flow, the only thing worse than below market tenants is probably healthy, Resilient below market tenants.<br /> <strong><br /> Some tenants, of course, perceive the payouts as huge windfalls. A lot of Urgently Due credit card debt is probably paid off with them.</strong> </p></blockquote> <p>Not sure I like the implications here, esp given your overall attitude in the clearing out of "old" buildings and tenants.</p> <p>Those folks have the right to live there just like anyone else, and aren't necessarily irresponsible or undesirable because their rents are lower than the average newcomer. </p> http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765738 Fri, 15 Mar 2013 08:59:34 +0000 whynot_31 765738@http://brooklynian.com/forum/ <p>I wonder if the below market tenants have already been offered a payout, but declined it. </p> <p>Clearly, it is in the sellers interest to be able to deliver the building with the least number of such units. But, if I had made such attempts and failed, I would want to hide that fact.</p> <p>In terms of cash flow, the only thing worse than below market tenants is probably healthy, Resilient below market tenants. </p> <p>Some tenants, of course, perceive the payouts as huge windfalls. A lot of Urgently Due credit card debt is probably paid off with them. </p> http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765737 Fri, 15 Mar 2013 07:31:02 +0000 landlord 765737@http://brooklynian.com/forum/ <p><blockquote>$1.5m is apparently in the ballpark for a two-fam a few blocks north. </blockquote></p> <p>The 2 family is not an investment property. You can't compare the two. There is a 1 family in prime slope that is worth much more then my mixed use building in prime slope. Additionally, if you buy this building ...your most likely not going to live in it.</p> <p><blockquote> because this would give me some insight as to when this building's cash flow might have improved.</blockquote></p> <p>- That would be speculative and is a dangerous gamble. I only buy based on current income production...not what it might generate in the future.</p> <p><blockquote>I'd want it delivered vacant.</blockquote></p> <p>It must be rent stabilized...or even worse, some apartments might be rent controlled. It would be incredibly hard to remove those tenants. You will have to pay them off to leave. </p> http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765735 Thu, 14 Mar 2013 23:50:40 +0000 eastbloc 765735@http://brooklynian.com/forum/ <p>$1.5m is apparently in the ballpark for a two-fam a few blocks north. But this is a pig in a poke, so to speak. I'd want it delivered vacant. </p> http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765732 Thu, 14 Mar 2013 19:14:21 +0000 whynot_31 765732@http://brooklynian.com/forum/ <p>I would be interested in knowing how long the market rate units have been "market rate", because this would give me some insight as to when this building's cash flow might have improved.</p> <p>My assumption is that when a building doesn't have a good cash flow, it is maintained accordingly. </p> http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765731 Thu, 14 Mar 2013 18:56:11 +0000 landlord 765731@http://brooklynian.com/forum/ <p>"I have no idea what maintenance on a bldg like this would be..."</p> <p>Some very important details are missing. Biggest of which is operating costs.<br /> Water and sewer should be 15k-20k per year. Then you have insurance/repairs/maintenance among other unforeseen expenses (legal, accounting, fines...etc). Just from the picture of the building on google map I can tell that the fire escape needs to be scraped and painted (about 4k). If a simple fire escape is not maintained, its most likely the mechanical's in the building are not properly maintained...which can cost a small fortune to replace.<br /> You also have to consider the amount of time you will have to invest. You can't just site home and collect rent! You will have to get involved and you will be at the building very often making sure things run smoothly. Especially the first 2 years.<br /> It would interest me at 1.5 million ....its definitely not an investment for someone with no experience managing property. </p> http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765703 Wed, 13 Mar 2013 15:30:28 +0000 whynot_31 765703@http://brooklynian.com/forum/ <p>In this case, I don't feel like doing an analysis about whether it is a good deal, but am just consistently putting out the message that properties are changing hands very quickly. </p> http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765701 Wed, 13 Mar 2013 14:57:51 +0000 Cool The Kid 765701@http://brooklynian.com/forum/ <p>Hmmm quick RE math</p> <p>25% down would be about 140K/yr for the mortgage at 5%</p> <p>45K in taxes a year</p> <p>I have no idea what maintenance on a bldg like this would be... I imagine fuel costs to be maybe 30K/yr</p> <p>Total rent is 304K/yr based on what they say</p> <p>So from what I see annual before tax income would be about 90K. After taxes thats about 60K. Thats not counting maintenance though. So this could be like a 5-8% after tax return. Thats not too fucking shabby, considering people are charging damn near $50/sf in "updated" units near by. </p> http://brooklynian.com/forum/crown-heights-and-prospect-lefferts-gardens/851-franklin-for-sale-near-president#post-765697 Wed, 13 Mar 2013 13:06:22 +0000 whynot_31 765697@http://brooklynian.com/forum/ <p><img src="http://www.propertyshark.com/mason/components/photo/pic_view.html?imgname=3-01273-0007.ElhJPsvf&amp;size=medium&amp;type="></p> <p>The pitch:</p> <p><a href="http://www.terracrg.com/setups/851_Franklin_Avenue.pdf" rel="nofollow">http://www.terracrg.com/setups/851_Franklin_Avenue.pdf</a> </p>