Long term BRRR in Bed Stuy Brooklyn, NYC John Hickey
I left of the last R because even though it would like to repeat in Brooklyn I'm not sure my credit will stand it at this point.
I bought this building in June of 2007 for 714k 2160sf bulking was vacant. I used and FHA with 3.5 down I got a 5 year interest only followed by a 30 year fixed at 6.375. The patent on the 30 year with taxes and insurance was 3900 or so. The building was partially renovated in poor taste. Nice wood floors but ugly kitchen and baths. I rented two floors and lived in the other for a few years. The rents for units 2,3 was 1400 and 1450. Shortly after the crash my tenants learned that condo developers were renting out luxury apartments in the area for around the same rents I was charging so I was forced to lower rents. 1200/apt 2 1050/apt3. In 2009 I renovated my own apartment and moved out. I rented the apartment for 1300. In 2013 I renovated the top floor the rent was 1050 before and 2700 after. Here are some photos during Reno and after. The Reno cost around 80k. It's a 3bed 2 bath with central heat/air. I also renovated hallway and replaced all staircases with a new oak staircase. Shortly after I was able to refinance the property to a 30 year @ 4.25. My payment after was 3461 rents 6350(with new tenants coming in I raised rents in apts 2 and 3 to 1800/1850 respectively.