Duplex in Bushwick, NYC
Hello everyone,
Would appreciate if anyone could analyze this.
I'm from Canada, and looking at this 2 family in Bushwick:
2000 SF lot
3180 SF built
Currently rented long term to section 8's, at 2,500$ for the larger apt, and 1,440$ for the smaller one. There is a basement that is maybe convertible to a third apt.
Taxes 170$
Hydro 30$
Mgmt 394$
Insurance 125$
No rehabbing needed, and assuming that I won't need to put anything into maintenance, as I was assured this is generally the case in NYC. (surely not losing 50% of gross rent like in other areas)
This boils down to:
3,046$ pre-tax monthly
36,552$ annually
the house is for sale at 372,000 including ALL expenses, including legal, title, first year insurance, broker fees, and forming an LLC.
So the cap rate is 9.82. I will try to finance this but getting a mortgage as a Canadian won't be easy. I can put up to 100% down, however, so I'll work something out.
The property is located in almost the southernmost point of Bushwick, though near the subways and bus stops. (5 mins walk)
This was offered to me by a friend who I trust. An experienced RE broker and former agent.
Comps are 450,000$, 505,300$, 550,000$ suggested by him and verified by me.
Thanks!