All Forum Posts by: Ariel Cohen

@Michael Upshur Project is going well so far. Plumbing and electrical are just about 100% complete and we are just about ready for the DOB inspection before moving to drywall and flooring.

How is your project coming along?

The most important question that you need to be sure about is that the market rent that you want to increase to is market for your condition/type units in the specific location. Assuming it is $650 and you raise the rent $100 on all 6 units and one tenant leaves you are in the same position you started with since the other 5 tenants are paying $500 more rent combined.

@Michael Upshur we are keeping the existing configuration which is a large duplex in the garden and parlor levels and two 1BR/1BA units on both the 2nd and 3rd floors for a total of 5 units. 

Michael Upshur I am in middle of a gut renovation on a brownstone in Bed-Stuy. Building is a 5 unit rental so the finishes will be nice but not super high end for an owner occupied unit. Challenges were that the building is landmarks and that the floors were totally out of level which requires a lot of work to get everything level for framing. Only up to leveling and framing right now and so far so good. The building had a decent amount of historical detail but it had been so chopped up over the years that it wasn't very uniform and would require a ton of work to restore that wasn't warranted for a rental. Also we were making changes to layouts which would have meant it would be difficult to maintain. Let me know if you have any specific questions.

Jon-Michael Agli what type of units are they and what is the market rent for those units? Maybe there is the ability to increase the rents.

@Matthew Paul at that price in the neighborhood it's a great deal even if it's just a shell of a building. 

@Joel Orford that sucks... Feel free to reach out to me with any questions in that you have in that area. I know it well and can help you move faster next time. 

Also make sure to follow up with the seller in case the guy who has it under contract doesn't close. Doubtful at that price but thinks do happen. 

Also now that it is under contract do you mind sharing the address? 

Scott Lappetito any updates on this deal? Did you close on the property?

Joel Orford any updates on this deal?

@Joel Orford what ever you do, I don't think you should do what you suggested in your original post "would the disadvantages out weigh the advantages so I should just forget it and move on".

Sounds like a good deal regardless of the worst case scenario costs and if you need help evaluating I would be happy to help. 

Joel Orford bed-stuy is big but a 6 family at that price in any part of bed-stuy sounds like a great deal. Are the units all vacant? For a 6 unit house that needs a lot of work, $120k sounds like too little. Don't go cheap on the renovations or you are going to be leaving a lot of cash on the table for getting top rents. Also since it's a 6 family make sure you do things correctly to get the units deregulated.