What a deal this house at 88 Wilson is — let me list the ways. It’s in prime Bushwick, close to everything cool and tasty in the hood, and walking distance to all the trains. It’s a great price for three units with three bedrooms each, it seems to be in good shape, and it’s not stabilized so you have no major tenant headaches. It’s even a nice twenty feet wide, which means the apartments are probably not railroads. From a satellite image, it looks to have a huge tree shading the back yard. I simply can’t think of any drawbacks unless the place is trashed inside — it even has the original front door! I would trade MY house for this one.
88 Wilson Avenue | $500,000
2880sqft | 20ft-wide | 3-family, 3ba | brick/frame
Morgan or Jefferson L/Myrtle JZ
Brian H February 4th, 2009 at 1:29 pm
Lots of fresh 08′ violations. Sounds like a troublesome brew lives there already. We all might have to pass.
http://167.153.4.71/hpdonline/select_application.aspx
HPDonline has the dirt.
Dresden February 4th, 2009 at 3:09 pm
http://a810-bisweb.nyc.gov/bisweb/PropertyProfileOverviewServlet?houseno=088&street=WILSON%20AVENUE&boro=3
I disagree Brian. I don’t see any open or recently closed violations. And your link doesn’t work.
The building might be old and need work, and the rent roll is probably pathetic.
Dresden February 4th, 2009 at 3:10 pm
Of course Brian, you might be looking at 88 Wilson STREET, not AVENUE, which means you’re looking at something in Bed-Stuy.
Jeremy Sapienza February 4th, 2009 at 3:17 pm
The magic words are: delivered vacant.
Dresden February 4th, 2009 at 3:56 pm
Potential rent roll? $5k?
Jeremy Sapienza February 4th, 2009 at 4:04 pm
I’d say 4K and you live in the third. Assuming the bedrooms aren’t railroad.
Brian H February 5th, 2009 at 11:08 am
For all the haters jump on it then. No greater lesson in life than life experience.
Dresden February 5th, 2009 at 12:24 pm
Jeremy – you really think you can get $2k a month for those units?
mopar February 7th, 2009 at 1:14 pm
Figure $1600 for each apartment, unless they’re unusually nice with fireplaces, detail, windows all around — unlikely.
Typical layout for these houses is four rooms deep, with a narrow side hall, which makes them cramped, dark, hot in the summer, and annoying.
Bob February 7th, 2009 at 2:56 pm
1600 for a 3 bedroom?
Armstrong February 7th, 2009 at 4:09 pm
I seriously doubt it. Am I the only one who thinks Bushwick rents are going to start dropping like a stone?
mopar February 10th, 2009 at 11:55 pm
Why wouldn’t you get 1600 for a three bedroom? We are paying 1600 for a two bedroom and my landlady just rented the top apt for 1900. Heat is not included, so it’s really even more expensive. She has multiple people begging her to rent to them, and rents it within the hour of showing it. Though if rents drop in Manhattan, Williamsburg, East Williamsburg — I could definitely see some easing of the pressure here.
Andrew February 11th, 2009 at 10:21 am
Economics are as follows:
You could probably get $1600/mo for the top two apts and $1500/mo for the bottom (which is smaller but comes with a backyard), assuming a basic renovation (paint, new kitchen cabinets, basic refresher on the bathroom) = $4,700/mo in rent. Operating expenses for heat/hot water, hall lighting, water, sewer and super for the trash comes to $600/mo. Insurance and taxes $300, so $900 in total operating expenses. Financing is the wildcard: Hard to get even 10% down on a three family these days (maybe FHA?) but if you can, and you pay 6%, interest expense is only $2,250. You would probably have to take an amortizing loan, so your actual payment including principal paydown might be $300 higher, or so, but that’s money that you’re paying back to yourself anyway by reducing your loan amount. If you can put 25% down and qualify for a conforming Fannie/Freddie loan, you’d probably get 5.5% and your interest expense would be only $1,717/mo!
So you can make at least $1,550/mo in monthly profit on this place, with plenty of room even if rents do go down a little. If the condition of the apartments is even halfway decent, this is a good opportunity.
Or… you could buy a foreclosure or short sale property for $350-400k, and probably do even better.
Dresden February 11th, 2009 at 10:29 am
Hey Andrew, nice job. I’d like to buy you a cup of coffee.
Andrew February 12th, 2009 at 9:42 am
Sounds good to me! How do you exchange contact info via this site, d’you know? I guess via Jeremy. I’ll ask him.
yasky February 13th, 2009 at 10:09 am
You’ll want to note that the lot size is 20×60. Unless the realtor’s specs are wrong. That is 40 feet shorter than standard (tends to be 100 feet). Hmmm, so, it seems like there’s a house but no backard.