Updated over 11 years ago on . Most recent reply
Classic Row House, Bronx Co.
My wife and I are thinking about making a low ball offer on a row house in the Bronx.
Ask: $400,000 (not worth this, no question)
Been on the market for a year
The house has got character! And it also has a load of problems. While it is a legal 2 unit, it needs at least 15-20k of work to get it there.
Are we making a mistake putting our aesthetic and character desires in the way? We already know we can make quicker, lower-risk money investing turnkey in the midwest (Memphis, Indianapolis, Kansas City). That being said, we love old row houses in the Northeast, and all things considered, we can turn the second unit into a $1800 / mo rental, it's just a matter of the interim (vacancy, rehab, etc.).
We are struggling with the fact that our desire for a unique living space conflicts with the investor fundamentals. Furthermore, any property that has been passed on for a year, has got to have problems galore.
Most Popular Reply
You are thinking of living in the place, right? Treat it like any other investment property. The advantage of looking at your own home is that your new found revenue might be a dramatic decrease in the amount of money you pay in rent.
How much are you paying right now to own/rent?
At $375k (I made this up, but it includes a fully renovated house :) ) with 5% down, your monthly payment is going to be about $2400/month. That assumes $4500 in taxes and a $2000 insurance payment. If you can rent the other half for $1800, you are down to $600/month plus utilities to live there. If that is significantly less than you pay now, you have a good investment PLUS you get the unique living experience you are looking for.