Open House Picks
Greenpoint 131 Milton Street Douglas Elliman Sunday By Appointment $1,250,000 GMAP P*Shark Windsor Terrace 38 East 2nd Street Douglas Elliman Sunday 1-3 $850,000 was $899,000 GMAP P*Shark Crown Heights 1241 President Street Corcoran Sunday 12-1:30 $825,000 GMAP P*Shark Flatbush 254 East 23rd Street Fillmore Saturday, Sunday 2-4 $465,000 GMAP P*Shark
Greenpoint
131 Milton Street
Douglas Elliman
Sunday By Appointment
$1,250,000
GMAP P*Shark
Windsor Terrace
38 East 2nd Street
Douglas Elliman
Sunday 1-3
$850,000 was $899,000
GMAP P*Shark
Crown Heights
1241 President Street
Corcoran
Sunday 12-1:30
$825,000
GMAP P*Shark
Flatbush
254 East 23rd Street
Fillmore
Saturday, Sunday 2-4
$465,000
GMAP P*Shark
Ha, Nomi, just saw your hilarious comments. Just catching up six months later, don’t mind me.
Thanks, Boerum.
Nomi, 14x would be my original 2003 purchase price divided by what I think my house would rent for today. Despite recent softness, rents in my neighborhood are still up strongly since 2003. As are home prices. My neighbor and I have nearly identical homes that we purchased within a few months of one another in 2003. My neighbor recently sold for a 40% premium to their 2003 purchase price having done enough renovating to add about 10% to the original price. You are right about multiples. Despite what some posters have said on this thread it would be nearly impossible to buy a property at 10x rents.
But Boerum Hill, rents have not gone down that much. You’re just translating what you think your house is worth today into annual rent, right?
Anyway, 10x annual rent seems not possible to me in any Brooklyn neighborhood.
I don’t think there are properties in good neighborhoods available for anything close to 10x rent. I bought my house in 2003 for about 18x 2003 rents. My purchase price would be about 14x todays rents. If you find a property at 10x rents I would recommend buying. An example for BHO.
Buy a $500K house at 10x rent of $50,000.
Put 20% down ($100K) and finance 80% ($400K) at 5.0% interest.
Annual Rental Income = $50,000.
Annual Interest Expense = $20,000 ($400K * 5%)
Annual Operating Expense = $5,000 (a guess for re taxes, heat, water etc).
Net Income = $25,000 most of which is tax sheltered by depreciation and interest expense + real estate tax deduction.
Cash on Cash Return ($25K Net Income/$100k Down Deposit) = 25%.
10 year treasury = 3.5%.
Return = Treasury rate + 2,150 bps
Wait, don’t get me wrong. I can certainly see the appeal from a sort . . . aesthetic, historical, inherent-to-the-design-of-the-house sort of way. Just not so much in the real life make breakfast sort of way.
Oh, oops. That was to mopar’s 5x annual rent comment.
I find it endlessly enjoyable to comment on your love of ancient kitchens. I don’t know why exactly .. . . well, yes I do. I mean, “oh, yeah! No counter tops, a cast iron stove, and no indoor plumbing! Yay, I’m home!”
Come on, that’s funny.
Well, not everyone’s joyous about a 1900 kitchen. 😉
I first saw the listing for the east Flatbush house in the spring of 2008, it was then listed for 499K.
I went to see it in June when the asking was 469K
I believe ( according to the Shark) that it sold for 360K. It needed complete renovating, but all of the details were still there.
Hopefully whoever bought did this, and looks like they’re trying to turn it.
Although with the change in the market, a nicely renovated house in that ‘hood I think may now struggle.