75 Liberty got an extreme makeover over the past months. It was on the market last year and since then has been bought up by an investor who has rehabbed the building. I had the chance to speak to one of the workers and he said the owner was doing “quality work” on the building. They went before the ARC for for paint colors and windows. The final result is much cleaner and fresh. It is still going to remain a 4 family rental when this easily could’ve been used for just one family, or at most 2. So it goes in Newburgh. Overall, it is good to see that the building is being maintained.
When you use these buildings for 4 families it never works. I look at some of the buildings on Lander. Too small a space for too many people.
To think, Brooklyn gets how much for 400 sq.’ ?
@Terry, Well its at least 4k per month for the owner of the building. 48k for the year minus the 10k in taxes is still 38K on whatever the investment on the building was. Which even it is 380k that’s still a 10% return, which is far better than anything you can reliably get from the stock market or. I just made up these number but the reality of what is taking place is seen within the numbers, if makes sense because the number work out favorably.
Let’s look at the numbers from a landlord’s side: No way are you getting 1K per apt. Now expenses: Taxes, Insurance, water/sewer, trash, utilities, maintenance, repairs and figure a 10% vacancy allowance. No longer a 10% return. Now let’s add the tenant headache….
It’s far beyond a 10% return. That number was based on a price of 380k but it was on the market for 50k and was in pretty good shape. I can’t imagine they could’ve put as much as 50k into it (likely closer to 30k). Using only the most conservative numbers possible – including dropping the price to 750/unit – it’s still easily over 20%. But that’s assuming you can find honest tenants that want to be there – which is the much more of a deterrent than the numbers (in this case at least, not newburgh as a whole)
Pretty sure they paid $40k for this
County website shows a price of $47k. So to be objective, the return is in the 15%+ range which make this a good investment if the tenants are paying rent regularly. If one or two of them start skipping out however, that 15% return quickly plummets and becomes a liability like so many other properties here.
Hard to believe that someone thinks that buildings are just owned free and clear without a mortgage.
Most are either paying a mortgage or for capitol improvements so add that to your list of expenses! It is the largest one–no wait—the constant moaning about every little nickel and dime repair that the tenant requires even as they destroy the building is likely the most expensive cost!
With student loan debt at $1.2 trillion the playing field for renters will be getting a lot larger and the stigma attached to renting is diminishing. I’ll add, as the federal .gov owns the majority of both forms of debt, mortgage and student, the latter returns a higher rate % of return and is not excusable. What do you think they’d rather own? Federal .gov wins, new single family home sales lose. Sifting through the tea leaves, I’m speculating that .gov is hashing out plans for a renter subsidy for college grads. The best time to buy is when “there’s blood in the streets” and windows of opportunity don’t hit you on the head like a brick. Cities such as the city of Newburgh are about to get a heck of a lot more diverse so we better learn to get along. It should be interesting.