Depending on where you are looking to purchase, HSBC has an AWESOME PROGRAM called communityworks. Currently, trading at 6.25% for 30 years. THey even have an option to extend to 40 years for 1/8 more or 6.375%

I bought in Bed-Stuy so the area qualified for the program. Even without the program the normal 30 yr rate trades @ 6.75% today.

Good luck.

Posted by: NewStoner at July 26, 2007 10:39 AM in response to Residential loan for 4-family

You've heard it already but I'll add my $.02. While we never gave a condo serious thought, we were a bit intimidated by the thought of owning and renovating a 3 family brownstone. But the numbers just don't lie. On top of that. I love the satisfaction of seeing my wife lay comfortably in the Parlor, while I escape to the back garden! Ahhhhhhh! Peace & Quiet. And it doesn't hurt that my 2 tenants cover more than 75% of my mortgage expense.

But you must be comfortable with the choice. Bed-Stuy is one of the few places that you can still get a building in your budget. And would no doubt need some work. You must always be open minded to the fact that we are still an Up & Coming Neighborhood. I wouldn't trade it for the world. But the two of you must come to that conclusion on your own.

Good luck!

Posted by: NewStoner at July 26, 2007 10:28 AM in response to condo or house

I have no idea who you guys have been talking to or using. I have a 4 story house and while we only have 2 floors done in central A/C and heat (3rd floor was occupied with tenants) the 2 floors only cost $10,000 soup to nuts. That's not an estimate. I would also add that our walls were wide open because we were doing a gut renovation on the garden level so that may have brought some of the cost down. I'm sure getting a unit strong enough to push air all the way up to the 4th floor is some of the cost, but.....

Posted by: NewStoner at June 15, 2007 5:01 PM in response to Central AC Quote--Right Price?

Our parlor kitchen was recently renovated. 18.5' wide. Mahogany wood. We had custom cabinets made with a Mahogany stain to match the woodwork. I would say the wall paint color and the backsplash and the counters will have more to say about the feel of the room.

There were some pretty good pictures in January when Mr. B was running the kitchen renovations segment. Look those up and you'll get a sense.

Your own personal taste will be the real key.

But to answer your question, same colored cabinets didn't affect the feel of the size of the room.

I've got pictures if you'd like to see

Posted by: NewStoner at April 17, 2007 4:31 PM in response to What Cabinet Color/Stain Do You Suggest?

Our parlor kitchen was recently renovated. 18.5' wide. Mahogany wood. We had custom cabinets made with a Mahogany stain to match the woodwork. I would say the wall paint color and the backsplash and the counters will have more to say about the feel of the room.

There were some pretty good pictures in January when Mr. B was running the kitchen renovations segment. Look those up and you'll get a sense.

Your own personal taste will be the real key.

But to answer your question, same colored cabinets didn't affect the feel of the size of the room.

I've got pictures if you'd like to see

Posted by: NewStoner at April 17, 2007 4:30 PM in response to What Cabinet Color/Stain Do You Suggest?

Dude,

can you give me some tips? PLEASE!!!
Welcome to the 'hood!

Posted by: NewStoner at April 13, 2007 10:01 AM in response to 'Queer' Guy Snags Washington Avenue B-stone

If you're not legally set up to take on a tenant, then you'll be taking on a considerable risk.

One nightmare experience is a friend that rented her apartment to a tenant who seemed like a wonderful man. 6 months in, he decided not to pay rent any more. She tried to sue to have him evicted. Well, after getting the case postponed for 3 months, the tenant then told the judge..."Well, it's not a legal 3 family house" which is wasn't. he remained in the house rent free for the next 14 months. When he was finally evicted by the Marshall, the landlord had no recourse to collect the past rent. Because it wasn't a legal three family.

Posted by: NewStoner at April 3, 2007 11:13 AM in response to renting out apartment in one family residence

1:11 is correct in saying the fed doesn't set Mortgage rates.

However, the fed most certainly has an effect on rates.

The prime rate is primarily the rate used to set Home Equity Lines of credit and the COFI is the rate that is used to set adjustable rates. Prime is based on the Fed Funds Rate which is Set by the Fed... The COFI (more inderectly linked to fed funds) tends to lag other interest rate movements.

That said, if the Fed Did cut rates, other rates would tend to follow.

Most first mortgage rates are based on the 10 year.

Posted by: NewStoner at April 2, 2007 3:30 PM in response to Bargaining With The Bank

Can somebody PLEASE tell me where they are offering the $3K mortgage closings? I mean REALLY.... Don't hold out!!!!!

Posted by: NewStoner at March 29, 2007 3:38 PM in response to Maybe Subprime Loans Aren't Pure Evil

My point is not to make a sweeping statement. Renting is better than Buying... or Buying is better than renting.

My point is to say, Apples to Apples... you have to figure the numbers and determine which is better for YOU!

The previous poster makes that point by comparing a 2 br. Duplex in a Brownstone vs. Buying the 3 family browstone, collecting the rental income, paying the tax, mntnce, ins, etc. Which one makes for the better choice? I don't know..

Maybe you're a hedge-fund manager and you know for a fact you can achieve a 25% return on your money. If that's the case, it wouldn't make sense to buy a house when you can simply rent and invest the cash in your equity long/short fund.

Posted by: NewStoner at March 29, 2007 12:59 PM in response to Maybe Subprime Loans Aren't Pure Evil

The problem here is some people insist on comparing Apples to Oranges. Thankfully, 'WhatBubble' @10:11 cleared up the confusion in regards to the difference between sub-prime loans & non-conventional loans.

But the arguement about Buying vs. Renting in New York is not black and white. There is the need to compare Apples to Apples.

If it costs you $3,000, all in, to rent the apartment of your choice in NYC, then have to compare that to what size mortgage is comparable, ALL IN, in NYC. A $650K Mortgage +ins. +taxes+maintenance -LESS your tax writeoff benifit will put you around that same $3,000.

So, in today's low interest rate environment, you'll be hard pressed to find an apartment that makes more sense to rent, than a comparable co-op,condo, or brownstone w/ tenants of the same size.

Subprime lending is more a risk to the issuing lender then it is to the borrower. Non-conventional loans, IMHO, are more a risk to the borrowers,becuase I feel those individuals are more likely to underestimate the shock of interest rate adjustments.

Posted by: NewStoner at March 29, 2007 11:07 AM in response to Maybe Subprime Loans Aren't Pure Evil

Any thoughts on the Bed-Stuy house? I'm thinkin' its priced pretty appropriately, even under valued.
Perish the thought
GASP!!

Posted by: NewStoner at March 23, 2007 2:04 PM in response to Open House Picks

Everyone telling you that you most certainly will have to move is full of it. I purchased my place and actually liked the fact that one of the tenants had been in the building for over 7 years. That kind of consistency is important for the comfort of having a reliable tenant. I spoke with the tenant prior to closing. She had hoped to stay. After meeting with her, I felt she would be just fine. We negotiated a fair rent. It went up slightly from what she was paying but she was happy to pay it to avoid having to move.

Find a way to get in touch with the new owners and have a discussion. If they plan on renting the apartment, there is no reason why they wouldn't want to talk with you. It avoids the possibility of having an empty apartment.

Now all this is assuming you were a model tenant for the previous owners. Now if you were a pain in the Arse.... Well.... there you have it.

Good luck!

Posted by: NewStoner at March 21, 2007 10:06 AM in response to House closing time?

C of O = Certificate of Occupancy. Now here's a really dumb questions..... Where exactly is PLG? Street Borders and what is it actually like?.... comparatively speaking..

If I find myself in the throws of a converstation with the PLG Troll, I'd like to have a basis. :-)

Posted by: NewStoner at March 20, 2007 1:32 PM in response to House of the Day: Wood for 52 Midwood

Donatella,

I'd love to pick your brain. I'm going to be going through a very similiar situation as the one you outlined. Let me know if I can email you.

Thanks!

Posted by: NewStoner at March 19, 2007 2:44 PM in response to Terminating lease on tenants

Once you lock rate, that's what you get. However, some lenders will allow you to adjust the rate if, by the time your closing comes, the rates have moved lower by 75bps. I was able to do this about 2 years ago. Locked rate at about 5.5, rates moved to 4.875. The lender let me relock at 5%. They charged me the .125 (in rate)

Posted by: NewStoner at March 19, 2007 1:48 PM in response to Interest Rate Lock and Negotiating with Mortgage Broker

Anon @ 11:59?
I'm confused... On one hand, you sound critical of the fact that this house wasn't shown on brownstoner, and on the other, you're stating you wanted this to fly under the radar to enhance your ability to get an offer in....

I'm not getting it.

Posted by: NewStoner at March 19, 2007 12:06 PM in response to House of the Day: Bainbridge Beauty

Sweet digs, but I think Stuy Heights ends to the East @ Stuyvesant St.

Posted by: NewStoner at March 19, 2007 11:53 AM in response to House of the Day: Bainbridge Beauty

I just happened by the Greene Ave. House. It needs a TON-O-Work. That said, it has the potential to be an amazing house. The Ceilings are incredibly high.(no less than 15 feet) and it is a solid 20X45 Building... But there was no attempt in making this place presentable. i.e. the DEAD MOUSE ON THE FOURTH FLOOR!!!!

I was sort of skeeved out. The agent wasn't that much more presentable either. The block is decent, not great. But I think the price is a tad bit too high. The owner was on the phone with the broker and reduced the price right on the spot to $999K
Go figure.

Posted by: NewStoner at March 10, 2007 11:35 PM in response to Open House Picks

Maybe you can keep your finger out of your childs mouth for a moment?

Then again, I don't have a child so I'm not aware of the constraints. :-D

Maybe a voice activated keyboard???

Posted by: NewStoner at March 7, 2007 12:02 PM in response to one handed typing

I Love the Rental Posts!!!! I wish there were more of them.

and more follow up on previous HOTDs

Posted by: NewStoner at March 7, 2007 11:47 AM in response to Craigs Picks, Rental Edition

The correlation between the two markets its fairly loose. That R squared ain't gonna be that high on that one. But the rational could make you think it's a stronger relationship than it actually is.

A True inverse relationship is simply interest rates and bond prices. People Selling out of a highly valued equity market tend to put that cash in fixed income instruments.

Thats not thinking of people that are FORCED to sell because the market is tanking and they just take their cash and hide it under the mattress.

They dont say, hey I better go buy a house now.... The Market is tanking.

It's the low interest rates and the creative financing that makes people believe they can afford more house than they thought they could.

Posted by: NewStoner at March 6, 2007 6:34 PM in response to REBNY Numbers Confirm Strong '06 for Brooklyn

Wayne!
Thank you very much!!

Sylvia, usually a recession is a "hind sight" realization, so until we're coming out of it, we won't realize we've been in it. So for right now, I think we're OK.

The majority of loans on properties in brooklyn were NOT sub prime loans, and were NOT ARMS. Now, for those folks that are unfortunate and could only come by a sub-prime floater, they could very well be in trouble if those adjustments start to kick in, and they haven't seen the 30% increase in valuation for their properties, and one of their tenants stopped paying rent. Yea, those folks may have a problem.

But for someone that has a FIXED, 30 yr mortgage... their property value not going up is not going to adversely affect them.

But as Wayne pointed out, if you think it was negligent to get a 30 year mtg in the last 2 years or so, and would have been better off in the market, well, let's see what you would have gotten.

If you simply rented your place and kept your 20% down payment that you must have had on that $1mm brownstone and invested in the S&P. From Jan '05 until today, your $200K would be worth $227k today. OK... good for you... But how much is that $1MM Brownstone Today? Do you think it's more or less than the $1.13MM you suggest?

I'm thinking maybe $1.6 or even MORE!!
Now, I'm not saying it's going to be worth $2MM next year... it may only be $1.7 or God forbid... Let's say the market slides 12% in the next month and if falls to $1.4.....

Guess what.... You're still screwed! because you need $280K Down payment and I don't think you've made that much in the market.....

Unless, like Wayne you plunked it all in GS stock.... And was a Goldman Partner at that! :-)

I'm sorry

Posted by: NewStoner at March 6, 2007 6:28 PM in response to REBNY Numbers Confirm Strong '06 for Brooklyn

I'm a bit confused by Sylvia's comments. Could you define "tank?" And what does a 30 year committment have to do with that aspect? If I have took out a 30 year mortgage on my property and, let's say for arguement sake, the market doesn't continue to appreciate with leaps and bounds? How does that affect me with my 30 year mortgage? People are still going to want and need to live somewhere. I will still want to live in my Brooklyn Brownstone.

I'm just not getting your point.

Posted by: NewStoner at March 6, 2007 11:58 AM in response to REBNY Numbers Confirm Strong '06 for Brooklyn

Ok....Maybe I'm still too new to brownstoner, but I don't exactly get what constituted someone as a troll here? I once thought that someone that would post using someone elses handle and make disparaging comments made them a troll.

So if that's not it, what is it? Because I totally missed it here.

Posted by: NewStoner at March 2, 2007 2:13 PM in response to Open House Picks

If you have a 4 story Brownstone and rent out the upper duplex, you can only depreciate 1/2 of the value of the home. So the above poster is correct. Only the portion of the house that is used for rental purposes can be depreciated over 27.5 years.

Posted by: NewStoner at March 2, 2007 10:05 AM in response to Taxes & basis for depreciation

I think the point may have been missed. Recently, some financial scams have been uncovered where people inflate the valuation of their properties, get financing for the inflated value, etc.

I think the "hmmmm" is directed to that curiosity.

A $555,000 property being financed w/ $700K and then being sold for $629 just doesn't readily add up.

Maybe its the 'new math'

Posted by: NewStoner at March 1, 2007 1:38 PM in response to Houses of the Day: 629 Doubleshot

OP,

You need to be a little more specific in terms of what you're getting...What you're looking to do....How much time you have... How much $$$ you have.... Do you plan on doing the reno yourself??...etc.

Renovations is a very very vast subject and in order for the responses to be meaningful to you, there needs to be some sense of scope.

So give us Size of your place, condition, & what you want to do for starters.

Posted by: NewStoner at February 23, 2007 3:05 PM in response to Help estimating renovations

Anon 1:55,

Being an "IDEAL" tenant is very very 'RELATIVE' and subjective. Maybe the landlord doesn't think they are such good tenants after all.... And chooses not to make up some excuse as to why they are not renewing the lease. Maybe the landlord doesn't like the smell that comes from the rented apartment. Or the strange sounds.... or their choice of clothes...

The point remains, the landlord has no obligation to share WHY they choose not to renew the lease.

Posted by: NewStoner at February 23, 2007 2:27 PM in response to Landlord won't renew lease

" Glad that the house is "central to the crusie ship terminal". You never know when you might want to pop out of the house for a quick cruise. "

HILLARIOUS!!!!

Posted by: NewStoner at February 23, 2007 2:19 PM in response to Joke of the Day: Red Hook New Build for $1.8 Mil

The landlord may be expanding his family.... May even have a distant cousin that needs the house.... or may be even selling the home....
The bottom line is, you enter into a '1 year lease' for a given purpose. You want access to an apartment and all that comes with that apartment for a year. A landlord agrees to those terms. While being a good tenant is a great thing, it has no bearing on the legality of the landlords decision not to renew.

and no, it doesn't suck. It's exactly as it should be. Just like on the flip side. If as a tenant you decide you want to leave after a year, should the landlord be able to force me to continue to pay rent at his place for another year? absolutely not!

Posted by: NewStoner at February 23, 2007 1:38 PM in response to Landlord won't renew lease

Get a lawyer. You're bound by that lease and the landlord has the right to recover from YOU!. They could care less about the broker.

Posted by: NewStoner at February 23, 2007 11:27 AM in response to FINANCIAL TROUBLE RELATED TO SUBLET APT!

Oh, you mean Atlantic & Flatbush are not high density?

I doubt very seriously that people that lived through the 6+ years of building infrastructure in Clinton Hill are now going to jump ship and endure the same pain all over again in Bed-Stuy. People that are moving to Bed-Stuy(like me) are hoping the same infrastructure will be created that was created in Clinton Hill & Fort Greene over the past several years.

Posted by: NewStoner at February 23, 2007 11:20 AM in response to with the atlantic

Ya Know, this could very well be a good ploy. Rediculously price your property.... Wait 'til Mr. B. gets wind of it and slaps it up on the sight.... A bunch of folk call the office to inquire "Are you serious with this price???"....Then the broker says..." Tell ya' what I'm gonna do.... I'll give you a 45% discount.....".... " Sold... for $990K.

$90K above what it's really worth!
Good Grief!

Posted by: NewStoner at February 23, 2007 11:01 AM in response to Joke of the Day: Red Hook New Build for $1.8 Mil

kphillips!

Thanks so much for adding a comment. It really gets tired and old hearing people complaining about someone's design, as if it should be designed with the intention on opening your doors to the masses. Good Grief!.

A question for you though. Do you see a hicup in the con-ed bill with the radiant heat? I want it. I really really want it. In the bathroom... The marble floors are ICE COLD.

Posted by: NewStoner at February 22, 2007 5:56 PM in response to Brownstone Renos: A Contrast In Styles

HC,
Not at all. Sounded a bit shady if you asked me. " Uhh, that place isn't available any longer.... It's in contract and I can't tell you what it was listed for "... Dial tone.

Posted by: NewStoner at August 2, 2006 3:09 PM in response to Under the Radar: 147 Greene Avenue

Someone answers and says it's in Contract. Wouldn't give a price range.

Posted by: NewStoner at August 2, 2006 12:32 PM in response to Under the Radar: 147 Greene Avenue

First off, I'd say not to fear a dark color for cabinetry. If you have very good lighting and have other surfaces that are light in color, such as the floor, countertops, and/or walls, you could get away with a dark shade. Also, if you have good natural lighting, fairly large windows, that is also a plus. But, keep in mind that there is really no "matching" in terms of a wood shade. The wood will be different and the stain will be different. It's best to go a few shades in either direction, lighter or darker, but within the same hue to continuity, rather than try to match exactly, which probably won't happen.

And, as mentioned above, you can also do white, cream, even an interesting mushroom or khaki color, along with any other "color" such as blue that was mentioned too.

Posted by: susan at April 19, 2007 6:04 AM in response to What Cabinet Color/Stain Do You Suggest?

Thanks Susan, great advice. I was also considering a Moss Green. The green Kraft Maid offers. My only concern is will this shade be appropriate 5 - 10 years from now? I do like that Moss Green!

Posted by: faithful at April 19, 2007 1:30 PM in response to What Cabinet Color/Stain Do You Suggest?

Newstoner- Who did you use?
Thanks,
OP

Posted by: at June 16, 2007 5:23 PM in response to Central AC Quote--Right Price?

A good way to price out A/C (only) is about $2500 per ton.
Typical tonnage per 400 square feet is 1 ton. Most brownstones take 2 tons per floor. Top floor usually takes 2 1/2 tons because it's always hotter on the top floor.
Be careful of who you choose and get at least three quotes. Pricing should be very similar. It's the personality of the contractor that you are trully shopping. To find one you can trust.

Posted by: joe at June 17, 2007 10:08 AM in response to Central AC Quote--Right Price?

I would vote for a house too --- but look in other neighborhoods in addition to BedStuy.

I would look into Kensington--super safe, super convenient, still affordable.

Posted by: at July 26, 2007 10:29 AM in response to condo or house

House, but only if your relationship is strong and you have a strong sense of humor.

Posted by: at July 26, 2007 10:38 AM in response to condo or house

I would say house, but not as overwhelmingly as everyone else. Don't get me wrong, we're loving this so far (we've been in our house for a little over a year, after four years in a condo in the same 'hood) but neither of us is handy and that scares me a little. We also don't have any tenants, so we don't have the satisfaction (mentally and financially) of having someone else pay our mortgage, but we didn't want to be landlords, so if the choice had been between house with tenants, or condo, it would have been a tough call.

All that being said though, sounds like the consensus is definitely house. In some ways I'm glad we spent some time in a condo because we built up some equity and got to know the neighborhood really well and had time to do a lot of brownstone research before diving in, but on the other hand, if we had bought our house even two years earlier we would have spent hundreds of thousands of dollars less for the same property and built up twice as much equity.

Posted by: Amy at July 26, 2007 10:51 AM in response to condo or house

Having a house is terrific, but for some people a condo or coop makes more sense. My way of looking at it is this: price-space-location, pick two. I agree with the poster who said get a house if you are handy, but more in the sense of don't get a house if you aren't handy or you don't like dealing with leaks, tenants, etc. You will get more for your money with a house, if you can stand living in a place where you can afford a house. One big question to answer first before you decide either way: how long - realistically - are you going to be there. If its a long time, try to get a house if you can.

Posted by: at July 26, 2007 10:52 AM in response to condo or house

If you are planning to have children soon, I vote not to buy in bed sty unless you can afford private school or you are willing to go through the whole variance/lottery hell

Posted by: anon at July 26, 2007 11:03 AM in response to condo or house

I have both a condo and a house.

I vote house, I was never handy, but became so after a few weeks.

My condo is in a slightly better location than the house but I prefer to be in my house 10 fold.
Rewards
1) Much more indoor and outdoor space.
2) Nobody to bother and nobody rarely bothers me.
I could have tons of people over with out worrying about stereo volume.
3) FAR, if I run out space one day, I could build more floors.
4) Tenants rent $ (73% of mortgage)
5) There is no common area it all my area (to be designed and redesigned as the need arises)

Pitfalls
1) All problems are your problems
2) There is no such thing as Finished House

Posted by: at July 26, 2007 12:24 PM in response to condo or house